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  • Dear Professor Nair, your research is brilliantly presented. i really appreciate it if you could email me the copy of the presentation slides. my email address is niz@prokhas.com.my

    thank you,
    Aimi
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  • i think is not too late for me to have a copy from you..my email is ; anwarpa04@yahoo.com...best regrds
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  • dear Dr Nair, would u mind emailing me this presentation as it gives a very good overview of malaysia's effort on innovation. my email is najat@mdec.com.my. thank you
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  • Brilliant Presentation. I will be grateful if you can email me a copy. My email address is:
    ananth.swaminath@innovision.net.in

    Thanks,
    Ananth
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    Innovation Led Economy: the Malaysian Experience Innovation Led Economy: the Malaysian Experience Presentation Transcript

    • Innovation Led Economy: The Malaysian Experience Professor Mahendhiran Nair School of Business, MONASH University Sunway campus Email: mahendhiran.nair@buseco.monash.edu.my Technopreneurs Association of Malaysia 28 July, 2010
    • Questions 1. What are the old economy & innovation economy? (innovation economy is also referred to as the new economy) 2. What are the „building-blocks‟ of the innovation economy? 3. Why is the innovation economy important? 4. How have other countries leap-frogged to the innovation economy? Korean experience. 5. Can Malaysia leap-frog to an innovation economy? Drivers and Challenges 6. Can NEM help Malaysia „leap-frog‟ to a new innovation trajectory?
    • Global Forces: Opportunities & Challenges Virtual Social Converging National Worlds Networks Technologies Security Global Outsourcing Intangible Asset Talent Globalization, Poaching Liberalization, Changing Demographics Regionalization & Energy Digitization New Economic Crisis Super Powers Rapid Liberalization Regional Technology Globalization/ Diffusion Blocs Gobblelization
    • Global Forces: Opportunities & Challenges Virtual Social Converging National Worlds Networks Technologies Security Global Outsourcing Intangible Asset Talent Poaching Creative Changing Destruction Demographics - Schumpeter Energy New Economic Crisis Super Powers Rapid Liberalization Regional Technology Globalization/ Diffusion Blocs Gobblelization
    • 1a. What is the old economy? Neo-classical theory (Solow, 1956 & 1957): production = f(Land, Labour, Capital) – Economic Growth is dependent on land, labour & capital. –Technology exogenous – The economy will eventually experience Diminishing Returns Endogenous Growth Theory (Romer,1990): production = f(Land, Labour, Technology(.), Education) – Human capital, technology, & R&D are important for economic growth and productivity – Total Factor Productivity (what factors influence TFP?)
    • 1b. What is the innovation economy? • An economy where the socioeconomic development & welfare gains are predominantly dependent on the production, diffusion and utilization of information, ideas and innovation. • Knowledge & Innovation are key factors for societal development & wealth creation - source of increasing returns (productivity gains). • Transformation of traditional factors of production - [LAND] “Places to Spaces” - [LABOUR] “Outsourcing” - [CAPITAL] “Global Financial Markets”
    • Traditional Paradigm Labour+ Labour+ Capital+ Technology+ Capital Education Source: IMP2
    • Traditional Paradigm Labour+ Labour+ Capital+ Technology+ Capital Education Transformation of Factors of Difficulty in initiating Production and managing the Value-Creation Proposition! Source: IMP2
    • 2. What are the ‘building-blocks’ of the innovation economy? [The 7i Framework]  REACH-factor [Foundation Condition] (Necessary) Infrastructure that facilitate connectivity to the global community - „highway‟ for the flow of information and knowledge.  RICHNESS-factor [Driver Conditions] (Necessary & Sufficient) Factors which deepens knowledge intensity in a society (Intellectual capital, Interaction, Incentives, Institutions, Integrity, Innovation). Source: Nair, M. (2007), “The „DNA‟ of the new economy,” Economic Bulletin, Volume 8, December, 27-59.
    • 7i Innovation Ecosystem Source: Nair (2007) Global Connectivity Agents of Transformation Smart & Strategic Catalyst for Partnerships Doing the things you promise with the best Creativity of your abilities Life-long learning
    • 7i Framework
    • Innovation is a Process A process which leads to the following: • new products/services; and/or • new ways of improving the efficiency of traditional factors of knowledge-buildup modes, invention, production and commercialization; and/or • New production and diffusion methods of knowledge, inventions, products/services; and/or • Enhance the reach and richness of goods/services and knowledge to society.
    • Types of Innovation • Business Model Innovation – eg. Franchise • Process Innovation – eg. Lean Six-Sigma • Product/Service Innovation • Systemic Innovation - new industrial clusters & social networks • Social Innovation – changes in society/culture • Position Innovation – changes in the context in which product/services, reputation and location • Paradigm Innovation – changes in the underlying mental models (eg. Look East Policy under Dr. Mahathir and may be PM Najib‟s NEM if it is well executed!) • Radical Innovation – existing knowledge obsolete • Incremental Innovation – knowledge to build on existing knowledge
    • 3. Why is the Innovation Economy important? Highly Marathon race in the innovation economy Developed (Driver Condition) RICHNESS-factor Weak REACH-factor Highly Developed (Foundation Condition) Source: Nair (2008)
    • Highly Marathon race in the innovation economy Developed (Driver Condition) RICHNESS-factor Failed States I. INFANT } Environment to support knowledge creation non-existent. Disincentive for foreign firms to bring in technology and knowledge. Serious brain-drain and capital flight. Weak REACH-factor Highly Developed (Foundation Condition) Source: Nair (2008)
    • Highly Marathon race in the innovation economy Developed (Driver Condition) RICHNESS-factor Adopters Few local creative endevours. Few linkages and II. IMITATION fragmented. Most innovation by foreign entities. Starters Very few local creative endevours and very few linkages with foreign Failed States entities. Number of foreign enterprises undertaking innovation low. I. INFANT } Environment to support knowledge creation non-existent. Disincentive for foreign firms to bring in technology and knowledge. Serious brain-drain and capital flight. Weak REACH-factor Highly Developed (Foundation Condition) Source: Nair (2008)
    • Highly Marathon race in the innovation economy Developed (Driver Condition) RICHNESS-factor ‘Adepters’ Fusion of clusters in key sectors of the economy. III. INTEGRATION Innovation transcend national border Adapters Attraction of Innovation-driven people and enterprises. Many linkages. Formation of clusters. Adopters Few local creative endevours. Few linkages and II. IMITATION fragmented. Most innovation by foreign entities. Starters Very few local creative endevours and very few linkages with foreign Failed States entities. Number of foreign enterprises undertaking innovation low. I. INFANT } Environment to support knowledge creation non-existent. Disincentive for foreign firms to bring in technology and knowledge. Serious brain-drain and capital flight. Weak REACH-factor Highly Developed (Foundation Condition) Source: Nair (2008)
    • Marathon race in the innovation economy Highly Developed Leaders in Innovation ; Pace-Setters Formation of next IV. INNOVATION generation clusters & Knowledge centers. (Driver Condition) RICHNESS-factor ‘Adepters’ Fusion of clusters in key sectors of the economy. III. INTEGRATION Innovation transcend national border Adapters Attraction of Innovation-driven people and enterprises. Many linkages. Formation of clusters. Adopters Few local creative endevours. Few linkages and II. IMITATION fragmented. Most innovation by foreign entities. Starters Very few local creative endevours and very few linkages with foreign Failed States entities. Number of foreign enterprises undertaking innovation low. I. INFANT } Environment to support knowledge creation non-existent. Disincentive for foreign firms to bring in technology and knowledge.. Serious brain-drain and capital-flight. Weak REACH-factor Highly Developed (Foundation Condition) Source: Nair (2008)
    • Marathon race in the innovation economy Highly Developed Leaders in Innovation Formation of next generation clusters & Knowledge centers (Driver Condition) RICHNESS-factor Fusion of clusters in key sectors of the economy. Innovation transcend national border Attraction of Innovation-driven people and enterprises. Many linkages. Formation of clusters. Few local creative endevours. Few linkages and fragmented. Most innovation by foreign entities. Very few local creative endevours and very few linkages with foreign entities. Number of foreign enterprises undertaking innovation low. } Environment to support knowledge creation non-existent. Disincentive for foreign firms to bring in technology and knowledge. Serious brain-drain and capital flight. Weak REACH-factor Highly Developed (Foundation Condition) Source: Nair (2008)
    • Marathon race in the innovation economy Highly Developed Leaders in Innovation Formation of next generation clusters & Knowledge centers (Driver Condition) RICHNESS-factor Fusion of clusters in key sectors of the economy. Innovation transcend national border Attraction of Innovation-driven people and enterprises. Many linkages. Formation of clusters. Few local creative endevours. Few linkages and fragmented. Most innovation by foreign entities. Very few local creative endevours and very few linkages with foreign entities. Number of foreign enterprises undertaking innovation low. } Environment to support knowledge creation non-existent. Disincentive for foreign firms to bring in technology and knowledge. Serious brain-drain and capital flight. Weak REACH-factor Highly Developed (Foundation Condition) Source: Nair (2008)
    • Marathon race in the innovation economy Highly Developed Leaders in Innovation Formation of next generation clusters & Knowledge centers (Driver Condition) RICHNESS-factor Fusion of clusters in key sectors of the economy. Innovation transcend national border Attraction of Innovation-driven people and enterprises. Many linkages. Formation of clusters. Few local creative endevours. Few linkages and fragmented. Most innovation by foreign entities. Very few local creative endevours and very few linkages with foreign entities. Number of foreign enterprises undertaking innovation low. } Environment to support knowledge creation non-existent. Disincentive for foreign firms to bring in technology and knowledge. Serious brain-drain and capital flight. Weak REACH-factor Highly Developed (Foundation Condition) Source: Nair (2008)
    • Marathon race in the innovation economy Highly Developed INCREASING Leaders in Innovation Formation of next RETURNS TO generation clusters & Knowledge centers SCALE ! (Driver Condition) RICHNESS-factor Fusion of clusters in key sectors of the economy. Innovation transcend national border Attraction of Innovation-driven people and enterprises. Many linkages. Formation of clusters. Few local creative endevours. Few linkages and fragmented. Most innovation by foreign entities. Very few local creative endevours and very few linkages with foreign entities. Number of foreign enterprises undertaking innovation low. } Environment to support knowledge creation non-existent. Disincentive for foreign firms to bring in technology and knowledge. Serious brain-drain and capital flight. Weak REACH-factor Highly Developed (Foundation Condition) Source: Nair (2008)
    • Leapfrogging in the innovation economy Highly Developed Leaders in Innovation Formation of next generation clusters & Knowledge centers (Driver Condition) RICHNESS-factor Fusion of clusters in key sectors of the economy. Innovation transcend national border Attraction of Innovation-driven people and enterprises. Many linkages. Formation of clusters. Few local creative endevours. Few linkages and fragmented. Most innovation by foreign entities. Very few local creative endevours and very few linkages with foreign entities. Number of foreign enterprises undertaking innovation low. } Environment to support knowledge creation non-existent. Disincentive for foreign firms to bring in technology and knowledge. Serious brain-drain and capital flight. Weak REACH-factor Highly Developed (Foundation Condition) Source: Nair (2008)
    • Static to Dynamic Innovation Model 1. Static Model (Linear) – Production Economy Research Development Commercialization 2. Dynamic National Innovation Ecosystem (NIE) – New Economy Government Enterprises Entrepreneurs Research Centers Innovation Ecosystem Associations Social Networks Knowledge Transfer Financiers Centers
    • Static to Dynamic Innovation Model 1. Static Model (Linear) – Production Economy Research Development Commercialization 2. Dynamic National Innovation Ecosystem (NIE) – New Economy Government Enterprises Entrepreneurs Research Centers Complex flow of information Innovation & resources Ecosystem between all stakeholders. Associations Social Networks Knowledge Transfer Financiers Centers
    • Static to Dynamic Innovation Model 1. Static Model (Linear) – Production Economy Research Development Commercialization 2. Dynamic National Innovation Ecosystem (NIE) – New Economy Government Enterprises Entrepreneurs Agile & Resilient Research Centers To Global S& T shifts A systematic approach to enhance Innovation collaboration & cooperation Ecosystem Ability to create S&T&I for all the stakeholders in the economy Associations Social Networks Knowledge Transfer Financiers Centers
    • Innovation Ecosystem Model Source: Nair (2010) Vision Value to Society New Break- Through T0 Time (now)
    • Innovation Ecosystem Model Source: Nair (2010) Vision Value to Society Ecosystem I (7i) T0 Time (now)
    • Innovation Ecosystem Model Source: Nair (2010) Vision Value to Society Ecosystem I Original Innovation (Increasing Returns) T0 Time (now)
    • Innovation Ecosystem Model Source: Nair (2010) Vision Value to Society Ecosystem I Original Innovation (Increasing Returns) T0 T1 Time (now)
    • Innovation Ecosystem Model Source: Nair (2010) Vision Value to Society Ecosystem I Original Innovation (Increasing Returns) T0 T1 Time (now)
    • Innovation Ecosystem Model Source: Nair (2010) Vision Value to Society Ecosystem II New Innovation (Increasing Returns) Ecosystem I Original Innovation (Increasing Returns) T0 T1 Time (now)
    • Innovation Ecosystem Model Source: Nair (2010) Multiple clusters & innovations Vision Eco system IV New Innovation (Increasing Returns) Value to Society New Innovation (Increasing Returns) Eco system III Ecosystem II New Innovation (Increasing Returns) Ecosystem I Original Innovation (Increasing Returns) T0 T1 T2 T3 Time (now)
    • Old Economy Innovation Economy Input Driven Model Powered by Multiple (Labour & Capital) Innovation Ecosystems
    • 4. How have other countries leapfrogged to the Innovation Economy? [7i Framework] Korean Experience
    • 7i Innovation Ecosystem Source: Nair (2007) Governments Enterprises Entrepreneurs Research Centers Intellectual Infrastructure Capital Integrity NATIONAL Interaction Systems INNOVATION ECOSYSTEM Social Networks Associations Incentives Institutions Knowledge Transfer Centers Financiers
    • 1. Infrastructure Development • Broadband Convergence Network Project – installing of backbone network linking 144 cities with optical cable (internet environment with no speed limit) – fibre-to-the-curb optical cable in residential areas enabled xDSL services everywhere in the country – liberalisation of the telco sector (charges reduced to flat rate of USD40/month) – ICT education for 10 million people since 2000 (Housewife target group)
    • Broadband penetration rate per 1000 people 250 Australia Brazil Canada Chile 200 China Finland Korea Leapfrog other OECD Germany countries India 150 Ireland Japan Korea, Rep Malaysia 100 Mexico New Zealand Norw ay Singapore 50 Sw eden Sw itzerland Taiw an United Kingdom 0 United States 1999 2000 2001 2002 2003 2004 Data Source: EarthTrends, World Resources Institute
    • 2. Intellectual Capital Development (Enhancing the quantum & quality of innovators) • Establishment of Korea Advanced Institute of Science & Technology – identify talented students in S&T – increase the support of postgraduate training locally [PhD - 1980: 3417; 1996: 36106] – strengthen research capacity - link with priority areas • Reverse brain drain programs – Scheme 1: Korean S&T workers – Scheme 2: Foreign (especially Japanese Koreans) – Scheme 3: Joint Appointments of Koreans Abroad
    • 3. Integrity • Transparent processes • Instilling good governance • Best practices • Global benchmarks & standards • Safety and Security Examples Procurement system - general tendering system based on price and quality Standardisation & quality control (Korea Research Institute of Standards & the Industrial Advancement Administration) (promote quality of industrial products, standards, measurements, inspection and testing)
    • 4. Incentives Commercialization Programs • Government-Industry agencies to identify new product development and new markets • KOTRA and other government-industry agencies facilitate global market penetration • „Big-Brother programs‟ through the help of GLCs and MNCs • Matching local IPs with VCs, Angel Funds and global markets
    • Nature of the Schem e Scope and Coverage Government Grants  National Research Program  Established in 1982  Designed to prom ote joint R& D bet ween - Comprehensive private firms and public R&D institutions  Focussed on basic technology devlopment Fiscal Incentives  Large companies: up to 50% funding support to support Innovation  Small enterprises: up to 80% funding support  Industrial Basic Technology Development  Established in 1987 Program  Designed for the commercialization of locally developed technologies  Large companies: 40-50%  Small companies: 50-60% Government‟s Loan Program:  Industrial Promotion Fund Government funds whic h are utilized to  Industrial Technology Prom otion Fund Provide firms with loans at concessional rate  SMI Restructuring Fund  National Investment Fund  Special Facilities Fund  Information and Communication Technology Development Fund  Science and Technology Promotion Fund  Manufacturing Industry Competitiveness Promotion Fund  Alternative Energy Technology Development Fund  Excellent Demonstration Prototype Support Fund  SMI Start-Up Fund Loan Financing of Special Financial Institutions  Korea Developm ent Bank Program  Industrial Bank of Korea Program  Citizens National Bank Program New Technologies Financing and Start -Up  Korea Technology Bank and three other Financing new technology financing companies  Korea Technology Investment Corporation and 52 other start-up support financing companies Technology Credit Guarant ee Fund  Credit guarantee is provided to firms developing new technology
    • Other Incentives • Low corporate tax for FDI (14 & 20%) • 100% exemption for investment in high tech zone. • No limitation in foreign ownership in local ICT & telecom market
    • 5. Interaction • Communication between government agencies • Communication between government agencies and private sector • Communication to the general public and social groups • Role of bringing organizations and knowledge centers • Enhancing Industrial Clusters and regional Industrial clusters (as part of the Regional Innovation System)
    • Seoul Gyeonggi •Digital contents, •Information & telecommunication Chungbuk •Information & •Life, Cultural Contents, •Bio-medical equipments telecommunication, •International logistics Centres of Excellence •New materials & disaster •Bio SOUTH KOREA prevention •Financial corporation support •Culture & tourism Incheon Chungu •Logistics Automobile, •Bio, •Machinery & metal •Semiconductor, •Informtion & telecommunication •Mobile communication •Next generation battery Chungnam •Electronics & information Gyeongbuk devices •Electronics & information •Automobile parts, devices, •High-end culture •New materials & parts •Agriculture & stock bio •Biology & herbal medicine •Culture & tourism Daejeon •Information & Daegu telecommunication •Mecatronics •Bio •Electronics & information •Cutting edge parts & materials devices •Mechatronics •Textile & biology Jeonbuk Ulsan •Automobile & Machinery •Automobile •Biology •Urban maritime •Alternate energy •Precision chemistry, •Culture & tourism •Environment Chungbuk Busan •Bio-medical equipments Jeonnam Jeju Gyeongman •Seaport logistics, •New materials & disaster •Biology •Tourism •Knowledge-based •Machine parts prevention •New materials •Health & beauty machinery •Tourism contents, •Culture & tourism ship building •Friendly agriculture •Robot, •Video IT •Logistics •Digital contents •Intelligent home, •Culture & tourism •Bio
    • Interaction Priority Technology Development Plans (Cluster Development) • Industrial Technology Development – To enhance short-term industrial competitiveness. – Target technologies: machinery & parts, semiconductor, precision equipment, non-memory chip, ASIC, LCD & etc. • Development of Strategic Technologies – Target technologies: new generation semiconductor, ICT, biotechnology, new materials and space technology
    • Interaction Priority Technology Development Plans (Cluster Development) Cont’d • Highly Advanced National (HAN) Project – 10 year inter-ministerial program – Develop core technologies for the future development of Korean industries Product Technology Development Fundamental Technology Development  Development of new drugs and  Development of ultra large-scale integrated agrochemicals circuits  Development of broadband integrated  Development of new advanced materials services and data network for the information electronics, and energy industries  Development of high-definition television  Development of advanced manufacturing (HDTV) systems  Development of next-generation vehicle  Development of new functional bio- technology materials  Development of environmental technology  R&D on next-generation nuclear reactors Source: http://www.kusco.org/mirror/most/policy2.html
    • 6. Institutional Coordination • Science Technology & Innovation Policy Council (General Policy Framework) • Relevant ministries and agencies for STI formulation, regulating, financing and coordination • RDC facilitating and modulating institutions (technology transfer & advice agencies) • R&D performers • Knowledge & technology transfer centers • Goods and service providers • Chambers of Commerce • Science Parks / technopoles • Associations, Social Networks, Groups and NGOs
    • KOREAN NIS Korean NIS
    • Institutional Coordination of Innovation – a staged approach in Korea 1960s 1970s 1980s 1990s 2000 2002-2025 Scientific Scientific R&D and Leading role in Nationwide Global Institution Infrastructure Private strategic areas innovation Innovation Building Setting Research Lab creation creation Promotion  Establishing of  Establishment  National  HAN Project  CyberKorea  e-Korea MOST of GRIs R&D Funds 21 (1999- Vision 2007 2002)  S&T(2007)  S&T Promotion  R&D  Promotion of  Enhancing  Goals by Laws Promotion establishme university 2025 Law nt of private research labs capability  Human  Highly  Promotion of  University- Resource Qualified industrial industry-GRI Development Personnel R&D linkages Development
    • Institutional Coordination of Innovation – a staged approach in Korea 1960s 1970s 1980s 1990s 2000 2002-2025 Scientific Scientific R&D and Leading role in Nationwide Global Institution Infrastructure Private strategic areas innovation Innovation Building Setting Research Lab creation creation Promotion  Establishing of  Establishment  National  HAN Project  CyberKorea  e-Korea MOST of GRIs R&D Funds 21 (1999- Vision 2007 2002)  S&T(2007)  S&T Promotion  R&D  Promotion of  Enhancing  Goals by Laws Promotion establishme university 2025 Law nt of private research labs capability  Human  Highly  Promotion of  University- Resource Qualified industrial industry-GRI Development Personnel R&D linkages Development Phase I (~2005) Leapfrog other Asian Nations • Increase R&D Expenditures & efficiency • Expend Infrastructure • Reform S&T Education • Perform Future-oriented frontier research
    • Institutional Coordination of Innovation – a staged approach in Korea 1960s 1970s 1980s 1990s 2000 2002-2025 Scientific Scientific R&D and Leading role in Nationwide Global Institution Infrastructure Private strategic areas innovation Innovation Building Setting Research Lab creation creation Promotion  Establishing of  Establishment  National  HAN Project  CyberKorea  e-Korea MOST of GRIs R&D Funds 21 (1999- Vision 2007 2002)  S&T(2007)  S&T Promotion  R&D  Promotion of  Enhancing  Goals by Laws Promotion establishme university 2025 Law nt of private research labs capability  Human  Highly  Promotion of  University- Resource Qualified industrial industry-GRI Development Personnel R&D linkages Development Phase II (~2015) Phase I (~2005) Research Hub in Asia-Pacific Leapfrog other Asian Nations • World class information • Increase R&D Expenditures & • Embrace globalization & promote efficiency global networking system • Expend Infrastructure • Establish and diffuse a novel S&T • Reform S&T Education culture • Perform Future-oriented frontier • Foster New Knowledge-based research industries • Advanced Basic-Science & Nurture World Class Scientists
    • Institutional Coordination of Innovation – a staged approach in Korea 1960s 1970s 1980s 1990s 2000 2002-2025 Scientific Scientific R&D and Leading role in Nationwide Global Institution Infrastructure Private strategic areas innovation Innovation Building Setting Research Lab creation creation Promotion  Establishing of  Establishment  National  HAN Project  CyberKorea  e-Korea MOST of GRIs R&D Funds 21 (1999- Vision 2007 2002)  S&T(2007)  S&T Promotion  R&D  Promotion of  Enhancing  Goals by Laws Promotion establishme university 2025 Law nt of private research labs capability  Human  Highly  Promotion of  University- Resource Qualified industrial industry-GRI Development Personnel R&D linkages Development Phase III (~2025) Phase II (~2015) Global Leader in Specific S&T Phase I (~2005) Research Hub in Asia-Pacific Establish a system for production, Leapfrog other Asian Nations utilization and distribtuion of • World class information sophisticated information • Increase R&D Expenditures & • Embrace globalization & promote • Increase public awareness of efficiency global networking system cutting-edge S&T. • Expend Infrastructure • Establish and diffuse a novel S&T • Establish a science-based National • Reform S&T Education culture Management System • Perform Future-oriented frontier • Foster New Knowledge-based • Contribute actively to the World research industries Scientific Community • Advanced Basic-Science & Nurture • Enhance the technological World Class Scientists integration capacity between South & North Korea
    • Global Innovation Marathon Race (Check out Korea, Finland and Malaysia) Econometric Modelling Using the 7i Framework Data from the WEF-2008/2009 The Global Competitiveness Report (Lopez-Claros, Porter, M., Sala-i-Martin and Schwab, C.)
    • Infrastructure (Physical) Band 1 Band 2 Band 3 Band 4 Band 5 Band 6 Band 7 Band 8 United Arab France Norway South Africa Uruguay Algeria Zimbabwe Burkina Faso Emirates Czech Switzerland Luxembourg Iceland Gambia, The Ukraine Cambodia Argentina Republic United Macedonia, Singapore Barbados Latvia Syria Benin Vietnam Kingdom FYR Dominican Germany Spain Bahrain Greece Kazakhstan Guyana Zambia Republic Hong Kong Tunisia New Zealand China Mexico Philippines Tanzania Suriname SAR Slovak Denmark Portugal Chile Pakistan Montenegro Madagascar Mozambique Republic Kyrgyz Finland Namibia Puerto Rico Azerbaijan Senegal Serbia Bolivia Republic Belgium Australia Thailand Morocco Ethiopia Bulgaria Bangladesh Ecuador Netherlands Estonia Israel Croatia India Mali Uganda Venezuela Trinidad and Austria Oman Qatar Sri Lanka Romania Cameroon Libya Tobago United States Slovenia Saudi Arabia Ireland Colombia Armenia Tajikistan Lesotho Bosnia and Canada Lithuania Panama Botswana Kenya Peru Mauritania Herzegovina Sweden Jordan Kuwait Indonesia Poland Albania Korea, Rep. Malta Hungary Costa Rica Brazil Burundi Malaysia Mauritius Egypt Moldova Nicaragua Japan El Salvador Guatemala Nigeria Taiwan, Jamaica Italy Nepal China Honduras Mongolia FACTORS: Georgia Paraguay • Quality of Roads Russian Timor-Leste Federation • Quality of Railroads Infrastructure Turkey Chad • Quality of Port Infrastructure • Quality of Air Transport Infrastructure • Quality of Electricity Supply
    • Band 1 Band 2 Band 3 Infostructure Band 4 Band 5 Band 6 Band 7 Band 8 Hong Kong Slovak Netherlands Italy Serbia Colombia Peru Armenia SAR Republic United Arab Norway Taiwan, China Spain Chile Venezuela Moldova Zimbabwe Emirates Sweden Singapore Israel Latvia Uruguay Ecuador Vietnam Zambia United Finland Hungary Poland Greece Jordan Guyana Tanzania Kingdom Czech Denmark Estonia Qatar Brazil South Africa China Bangladesh Republic Iceland Austria Lithuania Croatia Puerto Rico Panama Mongolia Benin Switzerland France Portugal Malaysia Mauritius Oman Georgia Mozambique Canada New Zealand Malta Bahrain Turkey Tunisia Egypt Madagascar Luxembourg Germany Romania Argentina Morocco Nicaragua Mali Macedonia, Korea, Rep. Australia Bulgaria El Salvador Syria Burkina Faso FYR Russian United States Belgium Costa Rica Suriname India Cambodia Federation Trinidad and Japan Jamaica Paraguay Bolivia Tajikistan Tobago Dominican Ireland Kuwait Mexico Namibia Republic Slovenia Ukraine Saudi Arabia Libya Azerbaijan Bosnia and Barbados Algeria Senegal Herzegovina Guatemala Indonesia Philippines Sri Lanka Kyrgyz Republic FACTORS: Mauritania • Quality of Telephone Infrastruture Kenya • Mobile Telephone Subscribers (Hard data) Gambia, The • Internet Users (Hard data) Honduras • Personal Computers (Hard Data) Nigeria • Broadband Internet Subscribers (Hard data) Pakistan
    • Band 1 Intellectual Capital Band 2 Band 3 Band 4 Band 5 Band 6 Band 7 Band 8 Switzerland Finland Estonia Jordan Turkey Vietnam Brazil Suriname United States Singapore Slovenia Sri Lanka Senegal Nigeria Panama Honduras Russian Denmark Iceland Indonesia Kazakhstan Georgia Tajikistan Burkina Faso Federation France Sweden China Lithuania Italy Botswana Pakistan Guyana Slovak Korea, Rep. Belgium Costa Rica Serbia Zambia Guatemala El Salvador Republic United Arab Ireland Canada Hungary South Africa Bulgaria Mexico Namibia Emirates Austria Netherlands Spain Kenya Gambia, The Argentina Mali Peru United Kyrgyz Japan Puerto Rico Croatia Colombia Madagascar Mozambique Kingdom Republic Hong Kong Norway Luxembourg Ukraine Morocco Lesotho Venezuela Nepal SAR Trinidad and Macedonia, New Zealand Taiwan, China Malta Uganda Cambodia Tobago FYR India Malaysia Azerbaijan Poland Albania Moldova Nicaragua Czech Israel Barbados Romania Uruguay Zimbabwe Ecuador Republic Qatar Germany Thailand Philippines Syria Libya Chad Tunisia Portugal Greece Benin Cameroon Burundi Bosnia and Australia Oman Latvia Jamaica Mauritania Herzegovina Dominican Saudi Arabia Montenegro Tanzania Bolivia Republic Kuwait Mauritius Armenia Mongolia Timor-Leste Bahrain Ethiopia Bangladesh Paraguay Chile Egypt INTELLECTUAL CAPITAL Algeria 1. Quality of Education system 2. Quality of Math & Science education 6. Extent of staff training 3. Quality of Management schools 7. Brain drain 4. Internet Access in schools 8. Availability of scientist & engineers 5. Local availability of specialized research & training services 9. Quality of research institutions
    • Incentives Band 1 Band 2 Band 3 Band 4 Band 5 Band 6 Band 7 Band 8 Hong Kong SAR Sweden United Kingdom Georgia Gambia, The Romania Macedonia, FYR Lesotho Singapore Denmark Czech Republic Guatemala Costa Rica Azerbaijan Syria Uruguay Dominican Bosnia and Switzerland Finland India Morocco El Salvador Italy Republic Herzegovina United States Netherlands Canada Turkey Panama Pakistan Albania Libya United Arab Austria Tunisia Poland Latvia Philippines Benin Algeria Emirates Taiwan, China Israel Indonesia Mexico Nigeria Colombia Guyana Mozambique New Zealand Norway China Bulgaria Vietnam Zambia Paraguay Burundi Trinidad and Russian Luxembourg Ireland Sri Lanka Kenya Honduras Timor-Leste Tobago Federation Estonia Australia Puerto Rico Namibia Jamaica Bangladesh Madagascar Venezuela Slovak Republic France Malta Peru Senegal Mauritania Ecuador Korea, Rep. Germany Slovenia Montenegro Kazakhstan Cambodia Bolivia Malaysia Belgium Japan Botswana Uganda Tajikistan Argentina Qatar Jordan Greece Moldova Nicaragua Zimbabwe Chile Spain Croatia Ukraine Serbia Chad Bahrain Mauritius Barbados Brazil Burkina Faso Oman South Africa Egypt Suriname Saudi Arabia Lithuania Mali Iceland Thailand Tanzania Kuwait Armenia Portugal Ethiopia Hungary Nepal FACTORS: Kyrgyz Republic 1. Intensity of local competition 9. Flexibility of wage determination 2. Extent & effect of taxation 10. Pay and productivity Mongolia 3. Prevalence of trade barriers 11. Financing through equity market Cameroon 4. Business impact of rules on FDI 12. Ease of access to loans 5. Burden of custom procedures 13. Venture capital availability 6. Degree of customer orientation 14. Extent of incentive compensation 7. Extent of regional sales 15. Company spending on R&D 8. Breath of international markets
    • Band 1 Band 2 Band 3 Interaction Band 4 Band 5 Band 6 Band 7 Band 8 Singapore Ireland Costa Rica Portugal Serbia Colombia Kuwait Bulgaria United Arab United States Malaysia Sri Lanka South Africa Lithuania Burkina Faso Suriname Emirates Switzerland Luxembourg Estonia Mauritius France Senegal El Salvador Lesotho Kyrgyz Denmark Canada New Zealand Kenya Jamaica Mexico Armenia Republic Sweden Belgium Tunisia Brazil Uganda Nigeria Ukraine Ethiopia Netherlands United Kingdom Hungary Jordan Turkey Botswana Tajikistan Venezuela Austria Australia Thailand Panama Romania Vietnam Albania Bangladesh Trinidad and Taiwan, China Qatar Indonesia Philippines Zambia Slovenia Paraguay Tobago Hong Kong Israel Guatemala Egypt Montenegro Moldova Kazakhstan Zimbabwe SAR Slovak Russian Norway Czech Republic Honduras Poland Syria Nepal Republic Federation Japan Puerto Rico Saudi Arabia Spain Tanzania Latvia Madagascar Ecuador Macedonia, Bosnia and Finland Korea, Rep. Oman Gambia, The Cameroon Pakistan FYR Herzegovina Dominican Germany China India Croatia Peru Benin Timor-Leste Republic Iceland Barbados Mali Mozambique Morocco Nicaragua Bolivia Azerbaijan Bahrain Uruguay Georgia Mauritania Algeria Chile Cambodia Libya Chad Malta Argentina Mongolia FACTORS: Greece Burundi 1. Cooperation in labor-employer relations Italy Guyana 2. FDI and technology transfer Namibia 3. Prevalence of foreign technology licensing 4. University-industry research collaboration
    • Band 1 Band 2 Band 3 Institutions Band 4 Band 5 Band 6 Band 7 Band 8 Denmark Estonia South Africa Panama Egypt China Uganda Serbia Russian Sweden Japan Puerto Rico Sri Lanka Morocco Burkina Faso Kazakhstan Federation Finland Qatar Malta Botswana Zambia Romania Tajikistan Lesotho Singapore Malaysia Chile Slovenia Indonesia Kenya Macedonia, FYR Nepal United Arab Switzerland Portugal Thailand Nigeria Senegal Ethiopia Mozambique Emirates Dominican Austria Barbados Israel Kuwait Uruguay Azerbaijan Ukraine Republic Germany Korea, Rep. Spain Hungary Turkey Benin Madagascar Cambodia Australia Bahrain Mauritius Greece El Salvador Vietnam Moldova Albania Norway Jordan Namibia Lithuania Poland Pakistan Libya Argentina Canada Tunisia India Czech Republic Peru Honduras Guyana Algeria Hong Kong SAR Oman Latvia Mali Suriname Bangladesh Netherlands Taiwan, China Brazil Tanzania Armenia Kyrgyz Republic New Zealand Saudi Arabia Slovak Republic Syria Nicaragua Mongolia Iceland Costa Rica Guatemala Cameroon Burundi Luxembourg Jamaica Bulgaria Zimbabwe Venezuela Ireland Colombia Georgia Mauritania Ecuador Bosnia and United States Philippines Herzegovina France Montenegro Timor-Leste United Kingdom Croatia Paraguay Trinidad and Belgium Chad FACTORS: Tobago 1. Property rights Mexico Bolivia 2. IP protection Italy 3. Judicial independence 4. Burden on government regulation 5. Efficiency of legal framework 10. Effectiveness of anti-monopoly policy 6. Reliability of policy services 11. Financial market sophistication 7. Strengths of auditing and reporting Standards 12. Soundness of banks 8. Protection of minority shareholders intersets 13. Regulation of securities exchange 9. Stringency of environmental regulations 14. Laws relating to ICT
    • Integrity Band 1 Band 2 Band 3 Band 4 Band 5 Band 6 Band 7 Band 8 Finland Australia Malta Montenegro Morocco South Africa Macedonia, FYR Mozambique Singapore Oman Jordan China Kazakhstan Peru Turkey Pakistan Sweden Ireland Spain Thailand Syria Burkina Faso Mali Italy Denmark Canada Taiwan, China Kuwait Vietnam Colombia Romania Uganda Norway Tunisia Estonia Azerbaijan Tajikistan Madagascar Algeria Lesotho Iceland Belgium Saudi Arabia India Libya Guatemala Ukraine Bulgaria New Zealand Korea, Rep. Uruguay Indonesia Greece Honduras Armenia Kyrgyz Republic Switzerland Barbados Chile Lithuania Croatia Kenya Serbia Bangladesh Netherlands France Botswana Egypt Ethiopia El Salvador Mauritania Burundi Hong Kong SAR Gambia, The Portugal Georgia Moldova Mexico Suriname Nepal Austria United Kingdom Israel Latvia Benin Philippines Poland Argentina Luxembourg Malaysia Mauritius Czech Republic Cambodia Guyana Cameroon Mongolia Qatar Bahrain Puerto Rico Slovak Republic Hungary Brazil Nicaragua Timor-Leste Bosnia and Germany United States Namibia Sri Lanka Albania Nigeria Zimbabwe Herzegovina United Arab Russian Trinidad and Japan Slovenia Tanzania Ecuador Emirates Federation Tobago Dominican Costa Rica Panama Senegal Jamaica Republic FACTORS Zambia Bolivia 1. Diversion of public funds Chad 2. Public trust of politicians 7. Organized crime Venezuela 3. Favoritism in decisions of Government officials 8. Ethical behaviour of firms Paraguay 4. Wasteful of government spending 9. Efficacy of Corporate Boards 5. Transparency of government policy making 10. Reliance on Professional Mgt 6. Business costs of crime and violence
    • Innovative Capacity Band 1 Band 2 Band 3 Band 4 Band 5 Band 6 Band 7 Band 8 Japan Singapore Australia Estonia Greece Romania Benin Lesotho Switzerland United Kingdom Malaysia Kuwait Poland Argentina Georgia Uganda Trinidad and Germany Iceland Puerto Rico Malta Hungary Botswana Tanzania Tobago United States Norway New Zealand Costa Rica Mexico El Salvador Burkina Faso Mongolia Sweden Belgium Spain Lithuania Croatia Kazakhstan Serbia Bangladesh Denmark Hong Kong SAR Czech Republic Jordan Nigeria Uruguay Armenia Mauritania Finland Canada Slovenia Barbados Jamaica Latvia Cambodia Nicaragua Austria Luxembourg South Africa Turkey Azerbaijan Egypt Guyana Nepal United Arab France Ireland Thailand Kenya Gambia, The Zambia Albania Emirates Netherlands Italy Chile Panama Colombia Honduras Tajikistan Moldova Russian Taiwan, China India Oman Morocco Ecuador Ethiopia Federation Korea, Rep. Tunisia Philippines Ukraine Namibia Madagascar Burundi Israel Saudi Arabia Slovak Republic Peru Bulgaria Venezuela Mozambique Dominican Portugal Mauritius Vietnam Macedonia, FYR Zimbabwe Republic Brazil Guatemala Syria Kyrgyz Republic Paraguay Bosnia and China Senegal Montenegro Suriname Herzegovina Qatar Pakistan Cameroon Chad Indonesia Mali Timor-Leste Bahrain Libya Algeria FACTORS 1. Firm-level technology absorption Bolivia 2. Local supplier quality 7. Production process sophistication 3. State of cluster development 8. Extent of marketing 4. Nature of competitive advantage 9. Local availability of process machinery 5. Value chain breadth 10. Capacity of innovation – licensing vs own technology 6. Control of international distribution 11. Utility Patents (Hard data)
    • Global Marathon Race in the new economy (2008/2009) Japan Hot Spots Pace-Setters Switzerland Germany USA Strong Australia Sweden Malaysia Developed Denmark Puerto-Rico Finland New Zealand Austria Spain Singapore France Czech Rep UK Netherlands Degree of Competitiveness Slovenia Iceland Taiwan South Africa Norway Korea Estonia UAE Belgium Israel Kuwait Chile Hong Kong Malta India Canada Costa Rica Tunisia Luxembourg Lithuania Saudi Arabia Ireland Jordan Portugal Italy Barbados Brazil Turkey China Panama Qatar Oman Indonesia Philippines Bahrain Slovak Rep Weak Highly Developed Development Stage of NIE
    • Challenge 1 Japan Hot Spots Pace-Setters Switzerland Germany USA Strong Australia Sweden Malaysia Developed Denmark Puerto-Rico Finland New Zealand Austria Spain Singapore France Czech Rep UK Netherlands Degree of Competitiveness Slovenia Iceland Taiwan South Africa Norway Korea Estonia UAE Belgium Israel Kuwait Chile Hong Kong Malta India Canada Costa Rica Luxembourg Tunisia Challenge 1 Ireland Lithuania Saudi Arabia Jordan Portugal Gap Widening Italy Barbados Brazil Turkey China Panama Qatar Oman Indonesia Philippines Bahrain Slovak Rep Weak Highly Developed Development Stage of NIE
    • Challenge 2 Japan Pace-Setters Switzerland Germany Challenge 2 USA Strong Australia Lower end Sweden Malaysia countries Denmark Puerto-Rico Finland Pursuing New Zealand Austria leap-frogging Singapore France Spain Czech Rep strategies UK Netherlands Degree of Competitiveness Slovenia Iceland Taiwan South Africa Norway Korea Estonia UAE Belgium Israel Kuwait Chile Hong Kong Malta India Canada Costa Rica Tunisia Luxembourg Lithuania Saudi Arabia Ireland Jordan Portugal Italy Barbados Brazil Turkey China Panama Qatar Oman Indonesia Philippines Bahrain Slovak Rep Weak Highly Developed Development Stage of NIE
    • Challenge 3 Challenge 3 Japan Leap-frogging Pace-Setters Switzerland Germany strategies USA Strong Australia Sweden Malaysia Denmark Puerto-Rico Finland New Zealand Austria Spain Singapore France Czech Rep UK Netherlands Degree of Competitiveness Slovenia Iceland Taiwan South Africa Norway Korea Estonia UAE Belgium Israel Kuwait Chile Hong Kong Malta India Canada Costa Rica Tunisia Luxembourg Lithuania Saudi Arabia Ireland Jordan Portugal Italy Barbados Brazil Turkey China Panama Qatar Oman Indonesia Philippines Bahrain Slovak Rep Weak Highly Developed Development Stage of NIE
    • 5. Can Malaysia leap-frog to an innovation economy? Drivers & Challenges
    • Drivers: Strengths • Political Will – under new PM • Planning system is good. • Emphasis on S&T – especially Mahathir's leadership (good foundation). • High investment in education. • Collaboration & Cooperation with regional economies (Korea and Japan) • R&D funded through cess collection brings together researchers & industry players.
    • Gaps in Malaysia’s Innovation System Unable to leapfrog to Widening the next innovation Gap frontier Value to Society Widening Gaps due to: • Slow in investing in the 7is (poor technology/ knowledge visioning) – late mover. Widening • Institutions managing innovation are uncoordinated. Gap • Innovation implementation not holistic, a lot of master plans and roadmaps, but they lack integration •Targets and signpost not tracked and reviewed on a regular basis. Hit diminishing • Turf wars between agencies managing innovation. returns •Lead agencies managing innovation lack clout to drive state/national innovation agenda. • Innovation policies more reactionary than strategic. • Policy inconsistencies (e.g. language policy for education). Time
    • Challenge 3: leap- frogging strategies Challenge 1: gap widening Challenge 2: leap-frogging strategies
    • Malaysia has fallen to 28th position (from 25th position) in Band 3 (as predicted) - others are moving at a faster pace. New players moved from Band 4 to Band 3.
    • Source: Nair (2010)
    • Note: Based on econometric forecasting by author
    • 6. Can NEM help Malaysia leapfrog to a new Innovation Trajectory? NEM - Harnessing the power of the Multiple Innovation Ecosystems in Malaysia
    • Trajectory 1- Innovation Diffusion (2010-2015) Japan Phase I: Innovation Diffusion Switzerland • Opening up the economy to global Germany competition in key service/tech. sectors. USA Strong • Access to affordable internet service Sweden (speed 1GB/s). Denmark • World class education system – enhance Finland competence in English & nurture world Austria Australia class creative thinkers, explorers & Singapore Malaysia France entrepreneurs. (Diffusion of a novel Puerto-Rico UK Netherlands Degree of Competitiveness innovation culture). New Zealand Iceland Taiwan • 85 % ICT Adoption including rural areas Spain • Increase R&D spending and acculturate Norway Korea Estonia Czech Rep SMEs to research & creating value. Belgium Israel Kuwait Slovenia • Establish CoEs in 10 priority areas (new Hong Kong Malta South Africa engine of growth) in strategic geographical Canada Costa Rica UAE areas (Corridors) Luxembourg Lithuania Chile • Industrial/knowledge clusters around the Ireland Jordan India CoEs. Italy Barbados Tunisia Turkey Saudi Arabia Panama Portugal Oman Brazil Philippines China Slovak Rep Qatar Indonesia Bahrain Weak Highly Development Stage of NIE Developed Note: Projections based on econometric simulations
    • Trajectory 2- Regional Innovation Hub (by 2020) Japan Switzerland Phase II: Regional Germany Innovation Hub USA Strong • Fully globalized economy. Sweden • World class physical infrastructure & Denmark infostructure. Finland Australia • Advanced basic science and Austria Malaysia industrial research architecture and Singapore France Puerto-Rico UK Netherlands Degree of Competitiveness support system. New Zealand • Some of the CoEs become regional Iceland Taiwan Spain Innovation centers in key areas – Norway Korea Estonia Czech Rep source of new generation frontier Belgium Israel Kuwait Slovenia discoveries & new knowledge-based Hong Kong Malta South Africa industries. Canada Costa Rica UAE • Formation of generation clusters Luxembourg Lithuania Chile in other regions in the country Ireland Jordan India • Export of technology & knowledge Italy Barbados Tunisia to other developing nations . Turkey Saudi Arabia (Asia-Pacific & leader among the Panama Portugal Ummah/OIC). Oman Brazil Philippines China Slovak Rep Qatar Indonesia Bahrain Weak Development Stage of NIE Highly Developed Note: Projections based on econometric simulations
    • Trajectory 3-Leapfrog regional economic super powers (by 2025) Japan Switzerland Germany Phase III: Leapfrog Regional USA Strong Sweden Economic Superpowers Denmark • Increased convergence of technology Finland Australia and knowledge systems will foster Austria Malaysia fusion of clusters. Singapore France Puerto-Rico • Some of fused clusters will become UK Netherlands Degree of Competitiveness New Zealand global innovation centers of Iceland Taiwan Spain excellence, contributing to new Norway Korea Estonia Czech Rep knowledge to the global community Belgium Israel Kuwait Slovenia •Fusion of clusters will result in new Hong Kong Malta South Africa technological breakthroughs and new Canada Costa Rica UAE emerging sectors. Luxembourg Lithuania Chile • A new system of production, utilization Ireland Jordan India and diffusion of new discoveries is in Italy Barbados Tunisia place. Turkey Saudi Arabia • High public awareness & utilization of Panama Portugal new innovation. Oman Brazil Philippines China Slovak Rep Qatar Indonesia Bahrain Weak Development Stage of NIE Highly Developed Note: Projections based on econometric simulations
    • Trajectory 4- Global Leadership in key innovation areas Japan (by 2030) Switzerland Phase IV: Global Hub in Germany USA Strong Specific Areas of Innovation Sweden • Malaysia is a member of the OECD. Denmark • Malaysian Innovation Clusters are Finland Australia established in OECD nations. Austria Malaysia • Leading international enterprises establish Singapore France Puerto-Rico global innovation clusters in Malaysia and UK Netherlands Degree of Competitiveness New Zealand are part of Malaysian innovation cluster Iceland Taiwan Spain program. Norway Korea Estonia Czech Rep • Malaysian researchers and enterprises Belgium Israel Kuwait Slovenia are involved in cutting-edge international Hong Kong Malta South Africa research & scientific programs. Canada Costa Rica UAE • Malaysian research universities are Luxembourg Lithuania Chile ranked top 40 in the world. Ireland Jordan India • 90% of the economic wealth is from Italy Barbados Tunisia knowledge-intensive sectors. Turkey Saudi Arabia • Malaysians experience a high standard Panama Portugal and quality of life – Malaysia is rated the Oman Brazil top 10 places in the world to live. Philippines China • Nobel Laureates, Leading Scientists Slovak Rep Qatar Designers, Thinkers and Innovators Indonesia relocate to Malaysia Bahrain Weak Development Stage of NIE Highly Developed Note: Projections based on econometric simulations
    • Tracing the footprints to a Pace-Setter: A Staged Approach Japan Switzerland Trajectory IV: Global Hub In Germany Specific Areas of USA Strong Innovation Sweden 2025-2030 Denmark Finland Australia Austria Malaysia Singapore France Trajectory III: Leapfrog Regional UK Puerto-Rico Netherlands Degree of Competitiveness New Zealand Economic Super- Iceland Taiwan Spain Powers Norway Korea Estonia Czech Rep 2020-2025 Belgium Israel Kuwait Slovenia Hong Kong Malta South Africa Trajectory II: Regional Innovation Canada Costa Rica UAE Luxembourg Hub Ireland Lithuania Chile Jordan India 2015-2020 Italy Barbados Tunisia Trajectory I: Innovation Diffusion Turkey Saudi Arabia Panama Portugal 2010-2015 Oman Brazil Philippines China Slovak Rep Qatar Indonesia Bahrain Weak Highly Developed Development Stage of NIE Note: Projections based on econometric simulations
    • ICT Diffusion (2010-2015) Leverage on MSC MSC Source: Nair (2010), paper forthcoming in a journal
    • 2010-2015: Leveraging from MSC Ubiquitous access to World Class ICT infrastructure &Services across the nation MSC Source: Nair (2010), paper forthcoming in a journal
    • 2010 - 2015 Innovation Diffusion MSC Source: Nair (2010), paper forthcoming in a journal
    • Kuala Perlis Fishery, ICT, Cold-chain process, Kota Baru Fishery, ICT, Cold-chain process, Malaysia’s halal food halal food hub, tourism, cultural content Arabic/religious digital content , Multiple Innovation Alor Setar Langkawi Tourism, Agriculture bio-technology, precision farming machinery Ecosystems (2010-2015) Agriculture ICT & Information systems, mechatronics, Health & halal food industry, and rural BPO. Beauty, Finance Kudat Sandakan Creative Kulim Rural BPO Agriculture, industry Automobile E&E, robotics, solar technology, new Biotech., smart- fuel-cell/batteries, mechatronics, smart auto tech Kota Ipoh agriculture, bio- P. Pinang ICT for mining, content Kinabalu diesel,,fishing Seaport logistics, nanotech.,, IT & Kuala Terengannu Logistics, Industry, BPO for ICT Petrochemical, Plastics, advanced telecommunication Services, robotics education, devices, bio-synthetic sensor materials and fishing, energy tech. Tourism, Cognitive science & smart computing Dungun education, Agriculture, biotechnology, smart-agriculture healthcare Cameron Highlands technologies (sensors & Agriculture Tourism, agriculture biotech, flower & flora, Information Systems), rural BPO, tourism Halal food production, food industry embedded system Tj. Malim Taman Negara & Cherating Auto Industry Experience Industry & eco-tourism & Hospitality Sabak Bernam Pekan Kuantan Agriculture biotechnology FIMS and rural BPO. Fishing, acquaculture, ICT, Lahad Datu Maritime Telecommunications, content AIMS, MSC G. Kinabalu New generation Temerloh Experience environmental ICT& Telecommunication Agriculture biotechnology industry technology & devices, education, and AIMS Forestry Financial services Kuala Lumpur BPO, Islamic banking & Culture & Tourism, finance, digital content, Tourism content, Finance Kluang & Kulai E-learning, Education Agriculture bio- Labuan technology, Banking & medical tourism Sepang bio-sensors finance and Pel. Kelang Airport logistics, Samporna AIMS and rural BPO. BPO Seaport logistics Culture & Tourism, Fishing, Tourism content Miri telecomunications, Shah Alam Agriculture, biotech., Automobile & machinery, solar technology Taman Negara Bio-infomatics, Education, Tourism & Hospitality Gua Mulu education , logistics Tourism Johor Bahru Mukah hub, petrochemical Tawau Education, Phamecetucal, Biotechnology Oya and advanced Long Seridan Agriculture ICT, Medical services & healthcare technology, materials Lifting & transfer Halal products Fishing & acquaculture Bintulu machines, distance gene technology, Electronic devides and and services Sarikei Forestry industry technology, mobile sensor technology,Halal food technology, Forestry and logistics communications Islamic banking services and Sibu tourism. furniture industry Agriculture,biotech Telecommunication, Pasir Gudang& Tanjung Pelepas Seaport logistics hub precision farming. Kapit Process & systems for forestry Kucing Sri Aman industry, advanced fibre & materials f Creative content, halal Wood technologyPrefabricated or construction industry, tourism products & services, construction materials education,. Intelligent homes Source: Nair (2010), paper forthcoming in a journal
    • Islamic Banking/finance Smart Aquaculture Education Petrochemical/advanced materials Logistic Advanced manufacturing BPO/ICT Serv/creative cont. Tourism Agri-bio, Precision Farm Forest technology Automobile/machinery parts Bioinformatics/gene tech./ pharmaceutical Regional Innovation Ecosystems By 2015 Source: Nair (2010), paper forthcoming in a journal
    • Islamic Banking/finance Smart Aquaculture Petrochemical/advanced Education materials Advanced manufacturing Logistic Tourism BPO/ICT Services Agri-bio, Precision Farm Forest technology Smart Auto/machinery parts Bioinformatics/gene tech./ pharmaceutical New Emerging Innovation Ecosystems By 2015 Source: Nair (2010), paper forthcoming in a journal
    • ECER NCER SARAWAK & SABAH CORRIDORS MSC IM Linking Corridor and Multiple Innovation Ecosystem Development Source: Nair (2010), paper forthcoming in a journal
    • Islamic Banking/finance Smart Aquaculture Petrochemical/advanced Education materials Advanced manufacturing Logistic Tourism BPO/ICT Serv/creative cont. Agri-bio, Precision Farming Forest technology Smart auto/machinery parts Bioinformatics/gene tech./ pharmaceutical Convergence between Innovation Ecosystems By 2020 Source: Nair (2010), paper forthcoming in a journal
    • Advanced Materials Polymer Fibre Glass Rayon Polyacrylonitrile (PAN) Resin Acrylic Polyvinylcholorida (PVC) Nanotubes Nanocrystals E&E NEMS MEMS Solar panels/cells Smart Vehicles Renewable energy vehicles Semiconductor Photolithography (Environmental Friendly Vehicles) Synthetic molecular motors/Nanomotors Carbon-based vehicle body & parts Nanomachines/robots/nanites SLIMSENS (Short & Long Range Integrated Multifunction New-generation sensors Radar Sensor) vehicles. Agriculture/ Aquaculture/Medical Surgical/medical instrumentations Drug-delivery micro-devices Precision farming devices Cold-chain systems An Example of Convergence of Innovation Ecosystems Source: Nair (2010), paper forthcoming in a journal
    • Advanced Materials Polymer Fibre Glass Rayon Polyacrylonitrile (PAN) Resin Acrylic Polyvinylcholorida (PVC) Nanotubes Nanocrystals E&E NEMS MEMS Solar panels/cells Smart Vehicles Renewable energy vehicles Semiconductor Photolithography (Environmental Friendly Vehicles) Synthetic molecular motors/Nanomotors Carbon-based vehicle body & parts Nanomachines/robots/nanites SLIMSENS (Short & Long Range Enhance Development New-generation sensors Integrated Multifunction Radar Sensor) vehicles. & Integration of the 7i (Creation of an eco-system that foster multi cluster innovation) Agriculture/ Aquaculture/Medical Surgical/medical instrumentations Drug-delivery micro-devices Precision farming devices Cold-chain systems An Example of Convergence of Innovation Ecosystems Fusion of other ecosystems Source: Nair (2010), paper forthcoming in a journal can be obtained from the author.
    • Establishing Innovation Clusters in Pace-Setter countries by 2020 • International Networking Program • International Research Lab Program • Leading Scholar Mobility Program between Malaysia & OECD and other Pace-Setters Source: Nair (2010), paper forthcoming in a journal
    • Summary Highly What it takes to achieve sustainable development? Developed Enhance the development Leaders in Innovation Formation of next and integration of generation clusters & the building-blocks (7is) of Knowledge centers the multiple ecosystems (Driver Condition) RICHNESS-factor In the economy. Fusion of clusters in key sectors of the economy. Innovation transcend national border Attraction of Innovation-driven people and enterprises. Many linkages. Formation of clusters. Few local creative endevours. Few linkages and fragmented. Most innovation by foreign entities. Very few local creative endevours and very few linkages with foreign entities. Number of foreign enterprises undertaking innovation low. } Environment to support knowledge creation non-existent. Disincentive for foreign firms to bring in technology and knowledge. Serious brain-drain and capital flight. Weak REACH-factor Highly Developed (Foundation Condition)
    • New Growth Engines by 2020
    • 10 New Generation Growth Engines for Malaysia by 2020 New financial instruments/services in Islamic Finance Artificial intelligence systems Nanotech & Robotics Education Future vehicles & Virtual/Creative Learning Environment Eco-friendly homes & Intelligent home networking systems Bio-informatics, DNA & gene technology (medicals, animal s& plants) New generation sensors / Semicondutors (Bio-synthetic Next generation Sensors) Mobile telecommunication (Microwave/Spectrum/Space Science) 2nd Generation BPO, Digital Content Creative industry Renewable energy Software solution (bio-fuel/Smart fuel cell & Batteries/solar technology
    • 10 New Generation Growth Engines for Malaysia by 2020 New financial instruments/services in Islamic Finance Artificial intelligence systems Nanotech & Robotics Education Future vehicles & Virtual/Creative Learning Environment Eco-friendly homes & Intelligent home networking systems Bio-informatics, DNA & gene technology (medicals, animal s& plants) New generation sensors / Semicondutors (Bio-synthetic Next generation Sensors) Mobile telecommunication (Microwave/Spectrum/Space Science) 2nd Generation BPO, Digital Content Creative industry Renewable energy Software solution (bio-fuel/Smart fuel cell & Batteries/solar technology
    • 10 New Generation Growth Engines for Transformation of traditional Malaysia by 2020 sectors • Manufacturing • Agriculture/Fishing New financial instruments/services in Islamic Finance • Forestry Artificial intelligence systems Nanotech & Robotics • The environment (tourism) into knowledge- Future vehicles Education & Virtual/Creative intensive sectors Learning Environment Eco-friendly homes & Intelligent home networking systems Bio-informatics, DNA & gene technology (human, animals& plants) New generation sensors / Semicondutors (Bio-synthetic Next generation Sensors) Mobile telecommunication (Microwave/Spectrum/Space Science) 2nd Generation BPO, Digital Content Creative industry Renewable energy Software solution (bio-fuel/Smart fuel cell & Batteries/solar technology
    • 10 New Generation Growth Engines for Malaysia by 2020 This is the ‘DNA’ of the New financial instruments/services in Islamic Finance New Economy Artificial intelligence systems Nanotech & Robotics for Malaysia! Education Future vehicles & Virtual/Creative Learning Environment Eco-friendly homes & Intelligent home networking systems Bio-informatics, DNA & gene technology (human, animals& plants) New generation sensors / Semicondutors (Bio-synthetic Next generation Sensors) Mobile telecommunication (Microwave/Spectrum/Space Science) 2nd Generation BPO, Digital Content Creative industry Renewable energy Software solution (bio-fuel/Smart fuel cell & Batteries/solar technology
    • 10 New Generation Growth Engines for Malaysia by 2020 This is the ‘DNA’ of the New financial instruments/services in Islamic Finance New Economy Artificial intelligence systems Nanotech & Robotics for Malaysia! Education Future vehicles & Virtual/Creative Learning Environment Eco-friendly homes & Intelligent home networking systems Bio-informatics, DNA & gene technology (human, animals& plants) New generation sensors / Semicondutors (Bio-synthetic Next generation Sensors) Mobile telecommunication (Microwave/Spectrum/Space Science) 2nd Generation BPO, Digital Content Convergence of Creative industry Software solution • S&T Innovation Renewable energy (bio-fuel/Smart fuel cell & • Social Innovation Batteries/solar technology • Grass Root Innovation
    • Innovation Imprinted in our DNA “Just as energy is the basis of life, and ideas source of innovation, so is innovation the vital spark of all human change, improvement and progress.” - Theodore Levitt American Economist & the Harvard University Professor who coined the term „Globalization‟.
    • Survival of the Fittest “Itis not the strongest of the species that survives, nor the most Intelligent that survives. It is the ones that is most adaptable to change” - Charles Darwin
    • ‘True’ Development “Whenever you are in doubt … Apply the first test. Recall the face of the poorest and the weakest man whom you have seen, and ask if the step you contemplate is going to be any use to him. Will he gain anything from it? Will it restore him to a control over his own life and destiny? True development puts those first that society puts last” - Mahatma Gandhi
    • Thank You