INNOVATION ACTIVITIES
CHAPTER 5: INNOVATION ACTIVITIES
5.6 Abandoned and On-Going Innovation Activities
According to Oslo Manual (2005), innovation activities consist of all scienti�ic, technological, organisational, �inancial and commercial steps that either lead or are intended to lead to the implementation of innovations. In addition, during a speci�ic period, a company’ innovation activities will be one of three kinds (Oslo Manual, 2005):
a. Successful in having resulted in the new implementation of a new innovation (even if it is not commercially successful).
b. On-Going innovation activities work in progress that has not yet resulted in the implementation of innovation.
c. Abandoned before completion indicates the activity stopped before the implementation of an innovation due to several issues such as �inancial constraints, knowledge limitation, technological barriers, and/or other internal or external in�luence.
Table 5.9 and Figure 5.15 show the numbers of abandoned and on-going innovation activities in manufacturing and services sectors. In the manufacturing sector, 71.47% companies reported having on-going projects compared to 64.16% in the services sector. On the other hand, 28.53%
of companies in the manufacturing sector and 35.84% of companies in services sector have abandoned projects before completion for the period of 2012 to 2014.
Table 5.9: Abandoned and On-Going Innovation Activities Innovation
Activities Manufacturing Services
Yes % No % Total Yes % No % Total
Abandoned before
completion 105 28.53 364 63.86 469 186 35.84 558 57.59 744 Still on-
going at the
end of 2014 263 71.47 206 36.14 469 333 64.16 411 42.41 744
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NATIONAL SURVEY OF INNOVATION 2015
5.6 Abandoned and On-Going Innovation Activities
According to Oslo Manual (2005), innovation activities consist of all scienti�ic, technological, organisational, �inancial and commercial steps that either lead or are intended to lead to the implementation of innovations. In addition, during a speci�ic period, a company’ innovation activities will be one of three kinds (Oslo Manual, 2005):
a. Successful in having resulted in the new implementation of a new innovation (even if it is not commercially successful).
b. On-Going innovation activities work in progress that has not yet resulted in the implementation of innovation.
c. Abandoned before completion indicates the activity stopped before the implementation of an innovation due to several issues such as �inancial constraints, knowledge limitation, technological barriers, and/or other internal or external in�luence.
Table 5.9 and Figure 5.15 show the numbers of abandoned and on-going innovation activities in manufacturing and services sectors. In the manufacturing sector, 71.47% companies reported having on-going projects compared to 64.16% in the services sector. On the other hand, 28.53%
of companies in the manufacturing sector and 35.84% of companies in services sector have abandoned projects before completion for the period of 2012 to 2014.
Table 5.9: Abandoned and On-Going Innovation Activities Innovation
Activities Manufacturing Services
Yes % No % Total Yes % No % Total
Abandoned before
completion 105 28.53 364 63.86 469 186 35.84 558 57.59 744 Still on-
going at the
end of 2014 263 71.47 206 36.14 469 333 64.16 411 42.41 744
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Figure 5.15 Abandoned and On-Going innovation Activities Based on Business Sectors
Figure 5.16 shows the comparisons of innovation activities abandoned before completion during 2014 to 2014 or on-going at the end of 2014 by company size. The findings indicate that large size companies have the highest percentage on-going innovations within the period for both sectors, with 83.33% in manufacturing sector and 73.68% in services sector. On the other hand, for the number of innovations abandoned within the period in manufacturing sector, medium size companies recorded highest percentage of 32.84% compared to small size companies that recorded the highest percentage of 36.38% in services sector.
Figure 5.16 Comparison of Abandoned or On-Going Innovation Activities Based on Company Size
CHAPTER 5: INNOVATION ACTIVITIES
66
NATIONAL SURVEY OF INNOVATION 2015
Box 7: Process and Organisational Innovations - Sawipac Sdn. Bhd.
Sawipac Sdn. Bhd. was established in 1996 and is an ISO 9001:2008 certi�ied company based in Kluang, Johor, Malaysia. The company provides related technologies and process solutions for palm oil industry. The company is involved in designing and manufacturing complete solutions for the process industry. It concentrates on palm oil processing mills and systems, including sub-units.
From the dimensions of , the company is now
concentrating on adopting lean manufacturing techniques, whereby the application of laser cutting, plasma welding, and other manufacturing innovations including staff rotations are implemented to achieve products of higher ef�iciencies and lower costs. In addition, the company has adopted computerised system in all departments to be competitive and ef�icient in terms of business operations. For example, most important machinery in the company are now computer controlled systems. These machines are now integrated with the computers in the design of�ice, allowing the design to be transferred directly to the manufacturing machines. The company also emphasises by providing training to its employees for up-skilling purpose. The company prioritises the recruitment of local talents, thus reducing dependency on foreign labour. This is because the company aims to create and maintain a creative, innovative and quality culture amongst its workers
In terms of R&D activities, the company has been granted with a few patents due to its inno- vativeness, whereby these activities are important for the company to offer superior prod- ucts or solutions than its competitors at competitive prices to the customers. For example, the company’s kernel plant - Patented Air Separator® is one of the products and systems that is well accepted by the industry.
In addition the company has been collaborating closely with local universities in order to increase and enhance its knowledge. For example, the company collaborates with Universiti Teknologi Malaysia (UTM) and Universiti Putra Malaysia (UPM) to improve its manufacturing techniques and processes as well as agriculture post processing techniques.
Due to the company’s innovativeness, it has been awarded the ISO 9001:2008, SME Innovation award, Enterprise Transformation Rating (2012) Award and the Innocert Award with an accompanying RM500,000 cash prize.
66
NATIONAL SURVEY OF INNOVATION 2015
Box 7: Process and Organisational Innovations - Sawipac Sdn. Bhd.
Sawipac Sdn. Bhd. was established in 1996 and is an ISO 9001:2008 certi�ied company based in Kluang, Johor, Malaysia. The company provides related technologies and process solutions for palm oil industry. The company is involved in designing and manufacturing complete solutions for the process industry. It concentrates on palm oil processing mills and systems, including sub-units.
From the dimensions of , the company is now
concentrating on adopting lean manufacturing techniques, whereby the application of laser cutting, plasma welding, and other manufacturing innovations including staff rotations are implemented to achieve products of higher ef�iciencies and lower costs. In addition, the company has adopted computerised system in all departments to be competitive and ef�icient in terms of business operations. For example, most important machinery in the company are now computer controlled systems. These machines are now integrated with the computers in the design of�ice, allowing the design to be transferred directly to the manufacturing machines. The company also emphasises by providing training to its employees for up-skilling purpose. The company prioritises the recruitment of local talents, thus reducing dependency on foreign labour. This is because the company aims to create and maintain a creative, innovative and quality culture amongst its workers
In terms of R&D activities, the company has been granted with a few patents due to its inno- vativeness, whereby these activities are important for the company to offer superior prod- ucts or solutions than its competitors at competitive prices to the customers. For example, the company’s kernel plant - Patented Air Separator® is one of the products and systems that is well accepted by the industry.
In addition the company has been collaborating closely with local universities in order to increase and enhance its knowledge. For example, the company collaborates with Universiti Teknologi Malaysia (UTM) and Universiti Putra Malaysia (UPM) to improve its manufacturing techniques and processes as well as agriculture post processing techniques.
Due to the company’s innovativeness, it has been awarded the ISO 9001:2008, SME Innovation award, Enterprise Transformation Rating (2012) Award and the Innocert Award with an accompanying RM500,000 cash prize.
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