This document summarizes a study on the entrepreneurial characteristics of innovators in Malaysia and how the environment influences the commercialization of innovations. It found that many "garage inventors" lack business skills to commercialize innovations successfully. It recommends establishing a National Innovation Academy partnered with industry to provide training in entrepreneurship, marketing, finance, and business management. It also recommends establishing fast innovation manufacturing centers partnered with industry to provide facilities for product development and supply chain management. A central agency should coordinate global marketing and promotion of Malaysian innovations. The study provides evidence to support strategy measures that can improve the commercialization rate and survival of innovative startups in Malaysia through a more focused framework assisting garage inventors.
1. STUDY TOWARDS THE NATIONAL INNOVATION STRATEGY : GARAGE
INVENTORS
An assessment of entrepreneurship characteristics of
innovators in Malaysia
Final Report
June 2011
Authors :
Prof. Stephen Ong, MINDS
Ms. Sahar Hassani, Multimedia University
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Table of Contents
Executive Summary 3
Chapter 1 : Introduction 4
Chapter 2 : Garage Inventors in Malaysia 8
Chapter 3 : Evaluation of the Entrepreneurship Characteristics of
Garage Inventors
17
Conclusion 23
Appendix – ITEX Survey Results and Questionnaire 24
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EXECUTIVE SUMMARY
This study was undertaken to assess the entrepreneurship characteristics of innovators and the
influence of the environment on the commercialisation efforts of innovators in Malaysia. The
study involved the research of innovators representing one hundred and sixty-nine (169)
organizations, and the active participation, interviews and responses from a representative
sample of one hundred and two (102) garage inventors. These innovators and their
organizations are deemed representative of the innovation activities in the national innovation
eco-system.
The findings of this study give a firm base of evidence and understanding to support our
recommendations of forward-looking strategy measures to improve the rate of successful
commercialisation of innovations and business survivability of innovative start-ups in
Malaysia through a more focused framework of assistance for garage inventors.
The strategy measures recommended address three broad areas, principally –
1. The establishment of a national academy to strengthen human capital in the areas of
entrepreneurship and innovation management, and commercial competence among
garage inventors;
2. The establishment of small scale manufacturing capabilities with industry players for
rapid prototyping and accelerated access to the market place for innovations ;
3. The establishment of a central coordination agency for collective global marketing
and promotion activities for innovations of garage inventors.
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CHAPTER 1 : INTRODUCTION
Overview
The Malaysian Invention & Design Society (MINDS) founded in 1986 is the largest Non-
Governmental Organisation (NGO) representing individual inventors and organisations in
promoting a culture of invention, creativity, industrial design, innovation and R&D in
Malaysia. For the past 22 years, MINDS has held an annual international Invention
Innovation & Technology Exhibition (ITEX) to showcase the best innovations by inventors
and innovators in Malaysia. Approximately over 10,000 innovations have been exhibited.
The successful innovators at ITEX are recognised by the World Intellectual Property
Organisation (WIPO) in Geneva, Switzerland. However, few innovations have achieved
global commercial success.
Research Study Approach
This study on the characteristics of innovators and their external environment in Malaysia -
“What are the entrepreneurial factors that influence the commercialisation efforts of
innovators in Malaysia?” – was commissioned by Unit Inovasi Khas (UNIK) to identify
improvements to the innovation eco-system and the entrepreneurship characteristics of
innovators that affect the rate of successful commercialisation of innovations in Malaysia.
Over the course of this eight week study, the research team set to establish answers to the
following questions :
1. What are the challenges that innovators face today?
2. What are the entrepreneurship characteristics of innovators?
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3. What are the strategy measures that can be recommended to improve the rate of
successful commercialisation of innovations and business survivability of innovative
start-ups?
Methodology of Study
The study was conducted through several self-administered questionnaires; and selected one-to-
one structured interviews. A survey of Malaysian innovators participating in the annual
International, Innovation & Technology Exhibition (ITEX 2011) and selected Malaysian
innovators who were award winners from previous exhibitions ITEX 2007 to ITEX 2010 was
carried out through a self-administered questionnaire and selected one-to-one interviews. The
list of organisations from the public, university and private sectors represented by the garage
inventors that participated in the study are listed in Exhibit 1.
The survey involved 102 respondents from a pre-qualified population of 392 ITEX
exhibitors, with an overall error-free contact rate of 26%.
The study provides a basis of understanding of the characteristics of innovators, innovation
capacity and growth in Malaysia.
Exhibit 1 : Participating innovators and their respective organizations at ITEX 2007 to
2011
ORGANISATION Abbreviation
UNIVERSITI MALAYA UM
UNIVERSITI SAINS MSIA USM
UNIVERSITI KEBANGSAAN MSIA UKM
UNIVERSITI PUTRA MSIA UPM
UNIVERSITI TEKNOLOGI MSIA UTM
RESEARCH UNIVERSITIES SUBTOTAL 5
UNIVERSITI TEKNOLOGI MARA UiTM
UNIVERSITI MSIA PERLIS UNIMAP
INT ISLAMIC UNIVERSITY MSIA IIUM
UNIVERSITI TUN HUSSEIN ONN MSIA UTHM
UNIVERSITI MSIA PAHANG UMP
UNIVERSITI MALAYSIA SABAH UMS
UNIVERSITI MSIA TERENGGANU UMT
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UNIVERSITI UTARA MSIA UUM
UNIVERSITI MSIA KELANTAN UMK
UNIVERSITI PERTAHANAN NASIONAL MSIA UPN
UNIVERSITI PENDIDIKAN SULTAN IDRIS UPSI
UNIVERSITI MALAYSIA SARAWAK UNIMAS
STATE UNIVERSITIES SUBTOTAL 12
UNIVERSITI TEKNOLOGI PETRONAS UTP
UNIVERSITI TEKNIKAL MSIA MELAKA UTEM
UNIVERSITY TENAGA NASIONAL UNITEN
MULTIMEDIA UNIVERSITY MMU
UNIVERSITI KUALA LUMPUR UKL
GIATMARA GM
INSTITUT KEMAHIRAN MARA IKM
KOLEJ UNIVERSITI ISLAM ANTARABANGSA
SELANGOR KUIAS
UNIVERSITY OF NOTTINGHAM MSIA UNM
UNIVERSITI TUNKU ABDUL RAHMAN UTAR
UCSI UCSI
PRIVATE UNIVERSITIES SUBTOTAL 11
MARDI MARDI
SIRIM BHD SIRIM
FRIM FRIM
LEMBAGA GETAH MSIA LGM
MPOB MPOB
MIMOS MIMOS
JABATAN TENAGA MANUSIA (MHRA) JTM
MALAYSIAN COCOA BOARD MCB
MSIAN INST PHARMA & NUTRACEUTICALS (MOH) MIPN
MACRES MACRES
RESEARCH INST / MINISTRIES SUBTOTAL 10
UNIVERSITIES-RI SUBTOTAL
TELEKOM RND TMRND
SME SME
CORPORATE SUBTOTAL 2
INDIVIDUALS IND
SCHOOLS SRMK
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Summary of Key Findings and Recommendations
INNOVATION
ECO-SYSTEM
CHALLENGES RECOMMENDED
STRATEGY MEASURES
Garage inventors L a c k b a s i c c o m m e r c i a l
understanding to grow sustainable
business enterprises
Establish a National Innovation &
Entrepreneurship Academy with
industry players in Key Sectors
Lack of facilities for industrial
design and supply chain
management
Es t a b l i s h Fa s t I n n o v a t i o n
Manufacturing Centres with
industry players in Key Sectors
Limited marketing resources to
support garage inventors and start-ups
Coordinate global marketing and
p romo t i o n s o f Ma l a y s i a n
Innovations in key export markets.
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CHAPTER 2 : GARAGE INVENTORS
Overview
The inventors movement has been formally organized as a Non-Governmental Organisation
(NGO) registered as the Malaysian Invention and Design Society (“MINDS”) for twenty-five
(25) years in Malaysia. The NGO was mooted by the Prime Minister of Malaysia at that time,
who also became its founding patron. Over the years, individual inventors from all strata of
society and professions including universities, research institutes, industrial designers, public-listed
corporations, SMEs, hobbyists and schools have supported and participated in activities
to promote creativity and showcase their “Made-in-Malaysia” inventions and innovations.
The achievement of the NGO has included attaining the endorsement of the Geneva-based
World Intellectual Property Organisation (WIPO) and elevated many Malaysian inventions
and innovations for recognition at the international level. As such, the annual exhibition
ITEX (International Invention, Innovation & Technology Exhibition), hosted by MINDS has
attracted a significant number of national collaborators and participants from foreign
countries including Taiwan, South Korea, Japan, China, Hong Kong, Iran, Saudi Arabia, Sri
Lanka, Brunei, Philippines, Indonesia, Thailand, Vietnam, Japan, Canada, USA, Germany,
Belgium, Poland, Hungary and Russia.
MINDS, as a non-profit organization, has focused on creating awareness of the importance of
inventions, innovations and design as a creative force in shaping the development of human
activities for the betterment of social and economic outcomes. MINDS has achieved this
through creative education programmes through schools at the local level throughout each
State in Malaysia; was the first to develop awareness among social segments including
Women and Youth; and the promotion of the awareness of intellectual property rights among
inventors. (This has resulted in the creation of another NGO, Malaysian Intellectual Property
Association).
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Being a self-funded organization, MINDS has only been able to provide basic education
programmes; a promotional platform through its annual exhibition; and basic intellectual
property related counseling. MINDS, as a recognized partner of CIP, has referred successful
inventors and innovators seeking seed funding for commercialization to the relevant
government agency. However, in reality, funding from government agencies have not been
forthcoming.
Our recent study has highlighted some important issues relating to the gap between
successful innovations and the route to commercialization for garage inventors. Essentially,
garage inventors fall into two (2) broad categories, namely university or PRI based
innovators, and privately funded innovators. While both groups have different expectations of
outcomes, they share similar characteristics that hinder their execution of successful
commercialization.
Challenges
i) Lack basic commercial understanding to grow sustainable business enterprises
ii) Lack of facilities for industrial design and supply chain management
iii) Limited marketing resources to support garage inventors and start-ups
Challenge 1: Lack basic commercial understanding to grow sustainable business
enterprises
Generally, the vast majority of garage inventors comprising of university and PRI based
inventors, have received generous funding from government grants, and have maintained a
high growth in terms of innovation outcomes and sustained innovation capacity. The
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noticeable exception being the fall in innovation capacity and decline in innovation outcomes
at private sector universities (including GLC owned universities) who have focused their
mission on profit growth exclusively. However, it is revealing that this category of inventors
continue to have a dependent mindset in terms of their expectation of continued government
funding for their commercialization efforts. This is in spite of their limited understanding of
the business environment and the required return on investment in the commercial world to
sustain a business enterprise.
Over the past few years, another disconcerting trend has emerged where universities have
formed their own investment holding subsidiary to assume full ownership and control of the
commercialization of their researchers’ innovations after they failed either to license or to
collaborate with industry partners. In fact, our study found that many of these innovations at
the research universities have also failed to qualify as incubatees at their own university
incubators. This approach of utilizing university funds has been taken in spite of clear
evidence showing that very few academics have entrepreneurial leadership and the university
organizational culture does not support entrepreneurial decision-making.
Recommended Strategy Measure: Establish a National Innovation & Entrepreneurship
Academy with industry players in Key Sectors
The agency should coordinate a strategic partnering programme with industry to set up a
National Innovation & Entrepreneurship Academy to focus on training and developing
entrepreneurship, industry orientation, marketing, financial and business management skills
of garage inventors. As the programmes will be industry led (and not academic based), the
Academy will help garage inventors to strengthen networking with industry and increase
exposure to global supply chain requirements.
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The Academy’s programme should focus on the twelve (12) National Key Economic Areas,
namely - Oil, Gas and Energy; Palm Oil; Financial Services; Tourism; Business Services;
Electronics and Electrical; Wholesale and Retail; Education; Healthcare; Communications
Content and Infrastructure; Agriculture; and Greater Kuala Lumpur/Klang Valley (i.e.
Infrastructure & Construction; and Transportation).
The agency will identify suitable multinational companies, public listed companies and
members of the Federation of Malaysian Manufacturers (FMM) operating in Malaysia for
this partnering programme. This programme will provide sound orientation for garage
inventors and their expectations, and prepare them to be more commercially relevant with
their plans to commercialise their innovations. The programme can also adopt software based
assessment tools to identify the gaps in their entrepreneurial characteristics and analyse
specific training needs. As a result, mentors or angel investors can be identified to suit
specific commercialization projects that pass the programme.
The Academy’s programme can be a pre-requisite for any potential incubatee applying for
entry at government run and university incubators. As such, the programme can be hosted at
the various university locations or incubator clusters based on demand.
The agency will establish the Academy with a founding grant, with subsequent operating
expenses support from universities sending their participants and private sector sponsorship
of their respective component industry awareness modules.
The agency will offer specific programme incentives to attract the participation from the
private sector and experienced management staff that include allowing corporations to
qualify expenses related to their sponsorship or seconded personnel for double tax relief
under innovation activities; and lower personal income tax rates (similar to the 15% income
tax rate for knowledge workers in Iskandar Malaysia) for experienced managers (department
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managers and above) from the corporations or recently retired (on an unconditional, non-discriminatory
basis).
This strategy measure will provide entrepreneurship orientation for garage inventors;
reinforce relevance on their commercialization efforts in the global marketplace through
engagement with industry players; encourage knowledge transfer and best practices from
industry; and strengthen entrepreneurial skills through a national training platform.
Challenge 2: Lack of facilities for industrial design and supply chain management
The second category of garage inventors that come from privately funded individuals and
SMEs have better understanding of commercial returns required for their innovative
products, but most are not collaborating with universities or PRI which is a pre-requisite for
government grants, as well as are disconnected from other available government incentives
and support system for SMEs and international trade. Further, this category of garage
inventors have tended to focus on meeting consumer needs with better mouse-traps (designs)
for consumer goods and innovative applications to improve consumer lifestyles. This trend is
similar to the focus of the majority of private sector garage inventors from Taiwan and South
Korea.
While the government has set up incubators to assist garage inventors in food processing,
furniture and craft industries, sectors related to fast moving consumer goods and consumer
appliances have not been addressed. With the increasing emphasis on consumer spending as
a driver for the region’s economic growth, it is not surprising that garage inventors have
innovated to meet the rising demand for consumer lifestyle goods associated with growing
affluence in Asia’s increasingly urbanized populations.
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The potential of import substitution of international brands purchased regularly by
households have not gone unnoticed by garage inventors in Taiwan, South Korea and China;
especially when the bulk of these items are produced locally or regionally. The success of
Taiwan in producing superior substitute products by innovating on the leading competitor
brands in their export markets; and building an efficient and flexible supply chain has meant
shorter turnaround times in bringing innovations to the marketplace - termed as “fast
innovation”, a concept learnt from the intensely competitive high technology companies in
the USA. The building up of Taiwan’s SME capacity has meant the strengthening of
industrial design and packaging; effective global systems integration functions; improved
management capability of members along the supply chain; and the availability of resources
for small production runs. Taiwan’s garage inventors have leveraged on this SME capacity to
bring their innovative products to market quickly.
Recommended Strategy Measure: Establish Fast Innovation Manufacturing Centres with
industry players in Key Sectors
The agency should coordinate a strategic SME industry partnering programme between
multinationals and local SMEs to set up the Fast Innovation Manufacturing Centres funded
by each party on a 50:50 basis. The Centres will house industrial designers and advanced
flexible manufacturing facilities. The effort will strengthen SME innovative process
capabilities and transfer best practice from multinationals to meet global supply chain
requirements.
This Fast Innovation Centres programme should focus on manufacturing consumer goods
from five (5) National Key Economic Areas, namely - Palm Oil; Electronics and Electrical;
Wholesale and Retail; Healthcare; and Transportation.
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The agency will identify suitable multinational companies operating in Malaysia for this
partnering programme with members of FMM. This programme will support SME capacity
to strengthen standards of industrial design and packaging; to develop global systems
integration functions; to improve management of the supply chain; and to adapt innovative
processes to enable small and flexible production runs.
The agency will offer specific programme incentives to attract the participation from
multinationals and SMEs that include allowing corporations to qualify investment and
expenses related to their participation for double tax relief under innovation activities.
Specific programme incentives can include extension of pioneer status of multinational for
another ten (10) years on corporate income tax exemption; five (5) year tax holidays or lower
personal income tax rates (similar to the 15% income tax rate for knowledge workers in
Iskandar Malaysia) for full-time knowledge workers from the multinational and the SME
employed in the Centre (on an unconditional, non-discriminatory basis); access to
employment of foreign knowledge workers; duty free imports of capital equipment and
consumables for the Centre; exemptions from government service tax and withholding tax on
technical and consulting services provided to the Centre; and access to the agency’s human
capital development innovation grants to subsidise fifty percent (50%) of salaries of technical
specialists.
This strategy measure will establish SME’s central role in supporting the commercialization
of innovative products for the global marketplace; encourage knowledge transfer and best
practices from multinationals; and strengthen local SME’s capacity to function in global
supply chains.
Challenge 3: Limited marketing resources to support garage inventors and start-ups
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For more than two decades, Government efforts at establishing a network of representative
offices in important foreign export markets (MATRADE, MPOB) and highly expensive
delegations to international trade fairs (eg. BIO) have yielded little market intelligence for the
under-represented SME sector with innovative products seeking large export customers. This
has been in stark contrast to Taiwan’s trade agency which pro-actively engages with large
buyers in the supply chain, on behalf of their SMEs, to offer more innovative product
solutions at better price performance than existing competitors in export markets.
As a result, garage inventors, early stage start-ups and SMEs are not able to leverage on
significant resources annually spent by government on promotional activities overseas in an
uncoordinated and less than effective way.
Recommended Strategy Measure: Coordinate global marketing and promotions of
Malaysian Innovations in key export markets
The agency should be the central coordinator for the global marketing and promotional
activities for innovations in key sectors. One of the important activities will include financing
the setting up of a single Malaysian Innovation Pavilion at each key industry annual
tradeshow to showcase relevant innovations, innovative products, technologies or hi-tech
start-ups. The Pavilion space will be made freely available to AIM approved innovations
from garage inventors and hi-tech start-ups, while SMEs and public listed companies will
contribute nominally to the costs of showcasing their innovations. A single Pavilion concept
will avoid duplication of effort, manpower and costs by other government agencies, and
reduce the need for large government led delegations.
Participants in the Pavilion will be responsible to make available factsheets on their
innovations as well as bear any representation costs, including own travel and
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accommodation. (This arrangement is similar to trade agency practices of many European
Union countries)
The agency’s representatives will record the enquiries of trade visitors in a database; perform
business matching and manage the follow up process by the relevant garage inventor or
Malaysian company. The agency will gauge the level of interest for each innovation exhibited
and may commission further market research to assess the commercial viability of the
Malaysian innovation in the foreign market on a fast-track basis. For individuals and hi-tech
start-ups, the agency will fully fund the market research study, while for SMEs, the market
research study will be on a one to one (1:1) matching grant basis.
The agency will offer specific programme incentives to allow corporations to qualify trade
promotions and market research expenses related to their innovations for double tax relief
under innovation activities; and individual expenses qualifying as 100% tax rebates for
personal income tax.
This strategy measure will align marketing resources with promotion of Malaysian
innovations in key export markets; increase early access to global markets by innovative
start-ups; accelerate the rate of market adoption at the international level of home-grown
disruptive technologies; and improve the global competitiveness of Malaysian innovations.
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CHAPTER 3 : Evaluation of the Entrepreneurship Characteristics of
Garage Inventors
Overview
In our study, we have examined the characteristics of innovators and the successful rate of
commercialisation by innovators at their organisations. A robust evaluation criteria is used to
evaluate the broad spectrum of organisations involved in innovation ranging from
universities, government research institutes; private sector corporations and private
individuals. (Note : schools were excluded in this study)
The garage inventors come from different types of organisations as show in Exhibit 2. We
have differentiated the type of organisations including the sub-categories of research, state
and private universities to demonstrate different innovation capacities related to their funding
programmes. We have also analysed a sub-category of university or research organisation
backed by a Government-Linked Corporation (GLC) to understand the impact on innovation
capacity.
Exhibit 2 : Types of organizations at ITEX 2007 to 2011
Type of Organisation Represented Number
Research Universities 5
State Universities 12
Private Universities & Colleges 11
Government Research Institutes 10
Private Corporations 35
Individual Inventors 46
Schools 50
We have used the number of innovation exhibits at ITEX as a proxy to measure the
innovation capacity and growth of innovation by garage inventors representing their
respective organisations. This measure is more sensitive and indicative of innovation
activities by garage inventors that the use of patent filing data, as the innovator will need
significant more resources to do so. We argue that an exhibit at innovation showcases (such
as ITEX) is usually the first step that an innovator takes to “test the waters” of their
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innovation’s relevance to commercialisation and an attempt to compare with the existing
technologies already in use in the real world. The innovator is able to manage the disclosure
conditions at the exhibition and protect his specific intellectual property even as he explores
commercialisation opportunities with potential partners.
The innovation capacity and growth of innovation as measured by exhibits at ITEX over the
last five (5) years, 2007 to 2011, is shown in Exhibit 3.
Exhibit 3 : Participating innovators and their respective organizations at ITEX 2007 to
2011
2007 2008 2009 2010 2011
UM 27 32 32 35 31
USM 31 44 18 25 16
UKM 21 55 55 20 0
UPM 19 9 10 14 22
UTM 0 4 14 4 16
RESEARCH
UNIVERSITIES
SUBTOTAL 98 144 129 98 85
UiTM 58 70 48 42 19
UNIMAP 28 39 35 44 47
IIUM 0 15 25 35 20
UTHM 9 15 18 18 22
UMP 9 15 15 8 16
UMS 4 23 20 10 0
UMT 6 24 8 7 2
UUM 0 9 8 14 8
UMK 0 0 6 6 10
UPN 0 0 0 7 13
UPSI 2 0 7 0 8
UNIMAS 0 0 0 0 0
STATE
UNIVERSITIES
SUBTOTAL 116 210 190 191 165
UTP 22 18 10 37 9
UTEM 15 18 15 16 23
UNITEN 8 16 10 25 1
MMU 8 2 5 8 8
UKL 2 0 5 6 8
GM 0 0 5 3 4
IKM 0 0 10 0 0
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KUIAS 0 0 0 5 2
UNM 0 0 0 6 0
UTAR 0 0 2 0 2
UCSI 2 0 0 0 0
PRIVATE
UNIVERSITIES
SUBTOTAL 57 54 62 106 57
MARDI 11 12 15 13 16
SIRIM 6 8 6 7 11
FRIM 9 7 10 7 4
LGM 0 6 6 0 5
MPOB 5 0 1 2 4
MIMOS 0 0 7 5 0
JTM 0 2 2 2 4
MCB 3 5 0 0 0
MIPN 0 0 0 0 2
MACRES 0 1 0 0 0
RI SUBTOTAL 34 41 47 36 46
UNIVERSITIES-RI
SUBTOTAL 305 449 428 431 353
TMRND 6 7 13 15 0
SME 2 3 14 6 9
CORPORATE
SUBTOTAL 8 10 27 21 9
INDIVIDUALS 4 6 3 3 30
SCHOOLS : SRK,
SMK 10 10 10 10 10
Evaluation Model
An evaluation model was developed to assess the entrepreneurial characteristics of the
innovator and the influence of various environmental factors on the commercialisation of the
innovation. The Innovation Performance (dependent variable) of an innovation, was also
measured in terms of commercialisation outputs such as sales, to show the effect of the
Entrepreneurial Characteristics (independent variable) of the innovator.
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The model further determined the effect on Innovation Performance (dependent variable) by
Financial Capacity (independent variable) of the innovator, and other mediating influences
by the Environmental factors (mediating variable) such as Intellectual Property regulations,
government innovation and tax policies.
Finally, the model assessed how Innovation Performance (dependent variable) is directly
affected by Target Market Attractiveness (independent variable) of the innovation, which is
determined by Market Orientation, Industry Orientation and Competitors Orientation
(intervening independent variables); and the mediating influence of any of the Environmental
factors (mediating variable).
The study measured 10 principal areas as follows :
1. the respondent’s demographic profile
2. the relationship of the innovation and commercialisation opportunities in the market.
3. the entrepreneurial characteristics of the innovator.
4. the feasibility analysis by the innovator.
5. the industry analysis by the innovator.
6. the market analysis by the innovator.
7. the futurity perception of the innovator.
8. the financial status and capabilities of the innovator.
9. the business growth cycle of the innovation.
10. the essential eco-system requirements needed to support the commercialization
process.
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Summary of Key Findings
Principal Areas Findings
Demographic profile Garage inventors were overwhelmingly from
the universities sector, with over 90% of
innovations.
As expected, the research universities
demonstrated the largest innovation capacities.
However, the growth of innovation
accelerated the most at State-owned
universities.
The relationship of the innovation and
commercialisation opportunities in the market
Few innovations were linked to opportunities
in the market.
The entrepreneurial characteristics of the
innovator
The vast majority of innovators demonstrated
weak entrepreneurial characteristics.
Feasibility analysis by the innovator Few innovators have conducted feasibility
analysis and require assistance to do so.
Industry analysis by the innovator Few innovators have conducted industry
analysis and require assistance to do so.
Market analysis by the innovator Few innovators have conducted market
analysis and require assistance to do so.
The futurity perception of the innovator The majority of innovators, over 60%,
expected the government to finance their
commercialisation effort.
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22. STUDY TOWARDS THE NATIONAL INNOVATION STRATEGY : GARAGE
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Financial status and capabilities of the
innovator
Few innovators understand the financial
returns expected from commercialisation, with
only 15% of commercialisation projects
qualifying as meeting the minimum
investment return standard.
Business growth cycle of the innovation The majority of innovations was at the early
proof of concept stage.
Eco-system requirements needed to support
the commercialization process.
The majority of innovators indicated strong
support for funding and the full range of
incubation services.
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CONCLUSION
The findings of this study has enabled the gathering of preliminary evidence for our
understanding and assessment of garage inventors and their innovation activities in
Malaysia.
Among the major issues raised by garage inventors in the innovation eco-system ranged from
insufficient funding disbursement processes; and the lack of institutional support for
commercialization activities. The study further observed the total lack of successful
entrepreneurship characteristics in garage inventors and entrepreneurial leadership (“the
missing link”); and entrepreneurial culture and management capacity in the organizations that
innovators work in.
In order to improve the rate of successful commercialisation of innovations and business
survivability of innovative start-ups in Malaysia, our strategy measures recommendations are
to follow through with a more focused framework in three principal areas, namely –
1. The establishment of a national academy to strengthen human capital in the areas of
entrepreneurship and innovation management, and commercial competence among
garage inventors;
2. The establishment of small scale manufacturing capabilities with industry players for
rapid prototyping and accelerated access to the market place for innovations ;
3. The establishment of a central coordination agency for collective global marketing
and promotion activities for innovations of garage inventors.
The conclusions of this study are supported by present academic theory and research in
entrepreneurship and innovation policies of developing countries, as well as in the developed
economies. Some of the necessary conditions for successful commercialisation of innovation
include sufficient sources of innovation generation from garage inventors; and the growth of
a technology entrepreneurship culture.
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Appendix – ITEX Survey Results and Questionnaire
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