INNOVATION ACTIVITIES
CHAPTER 5: INNOVATION ACTIVITIES
5.10 Innovation Cooperation
Cooperation or partners from other parties is important to succeed in innovation. Innovation cooperation involves active participation in joint innovation projects with other organisations.
These may either be with other enterprises or non-commercial institutions. Innovation cooperation takes place when there is active collaboration between the parties. Innovation cooperation allows enterprises to access knowledge, technology and facilities that they did not own, which otherwise would they not be able to bene�it from. There is also great potential for synergies in cooperation as partners, to learn from and help each other. Innovation cooperation can also take place along the supply chains and could involve customers and suppliers in the joint development of new products, processes or other innovations. Innovation cooperation can also involve horizontal collaboration, with enterprises working jointly with other enterprises or public research institutions.
Table 5.19 and Figure 5.31 demonstrate the response on the degree of importance of innovation partners. In general, the companies revealed that clients or customers (mean score of 2.53) are the most important partners followed by suppliers of equipment, materials and components (mean score of 2.46). Individually, the manufacturing sector reported that their three most important partners are their clients or customers with mean score of 2.53 followed by the suppliers of equipment, materials, components, services or software with mean score of 2.46 and other companies within their company group with mean score of 2.07. Their least important partner is commercial R&D partners with mean score of 1.71 and government or public research institutions with mean score of 1.33.
For the services sector, the suppliers of equipment, materials, component, services or software with a mean score of 2.40, are regarded as the most important partners followed by their clients or customers with a mean score of 1.97 and other companies within the company group with a mean score of 1.96. The �inding also indicated that in the services sector, commercial laboratories and private R&D organisations and government or public research institutes were the least important partners with mean scores of 1.14 and 1.13 respectively.
Table 5.19 Innovation Cooperation and the Importance of the Partners
Partners Mean
Manufacturing Services
Other companies within company group 2.07 1.96
Suppliers of equipment, materials, components 2.46 2.40
Client or customers 2.53 1.97
Competitors and other companies in the industry 1.86 1.52
Consultants 1.57 1.44
Commercial laboratories and private R&D institutes 1.71 1.14
Universities or other higher education institutes 1.76 1.47
Government or public research institutes 1.33 1.13
Total Average Mean 1.91 1.63
Note: Mean indicator: 0 = Not relevant, 1= Least important, 2= Moderately important, 3 = Highly important
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5.10 Innovation Cooperation
Cooperation or partners from other parties is important to succeed in innovation. Innovation cooperation involves active participation in joint innovation projects with other organisations.
These may either be with other enterprises or non-commercial institutions. Innovation cooperation takes place when there is active collaboration between the parties. Innovation cooperation allows enterprises to access knowledge, technology and facilities that they did not own, which otherwise would they not be able to bene�it from. There is also great potential for synergies in cooperation as partners, to learn from and help each other. Innovation cooperation can also take place along the supply chains and could involve customers and suppliers in the joint development of new products, processes or other innovations. Innovation cooperation can also involve horizontal collaboration, with enterprises working jointly with other enterprises or public research institutions.
Table 5.19 and Figure 5.31 demonstrate the response on the degree of importance of innovation partners. In general, the companies revealed that clients or customers (mean score of 2.53) are the most important partners followed by suppliers of equipment, materials and components (mean score of 2.46). Individually, the manufacturing sector reported that their three most important partners are their clients or customers with mean score of 2.53 followed by the suppliers of equipment, materials, components, services or software with mean score of 2.46 and other companies within their company group with mean score of 2.07. Their least important partner is commercial R&D partners with mean score of 1.71 and government or public research institutions with mean score of 1.33.
For the services sector, the suppliers of equipment, materials, component, services or software with a mean score of 2.40, are regarded as the most important partners followed by their clients or customers with a mean score of 1.97 and other companies within the company group with a mean score of 1.96. The �inding also indicated that in the services sector, commercial laboratories and private R&D organisations and government or public research institutes were the least important partners with mean scores of 1.14 and 1.13 respectively.
Table 5.19 Innovation Cooperation and the Importance of the Partners
Partners Mean
Manufacturing Services
Other companies within company group 2.07 1.96
Suppliers of equipment, materials, components 2.46 2.40
Client or customers 2.53 1.97
Competitors and other companies in the industry 1.86 1.52
Consultants 1.57 1.44
Commercial laboratories and private R&D institutes 1.71 1.14
Universities or other higher education institutes 1.76 1.47
Government or public research institutes 1.33 1.13
Total Average Mean 1.91 1.63
Note: Mean indicator: 0 = Not relevant, 1= Least important, 2= Moderately important, 3 = Highly important
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NATIONAL SURVEY OF INNOVATION 2015
Figure 5.31 Innovation Cooperation and Importance of the Partners Based on Business Sectors
Note: Mean indicator: 0 = Not relevant, 1= Least important, 2= Moderately important, 3 = Highly important
Figure 5.32 shows the comparison of the responses from the survey on the degree of cooperation and importance of partners based on company size across sectors. The findings indicated that in the manufacturing sector, large size companies regarded clients or customers as their most important partners with a mean score of 2.71. Medium size companies regarded suppliers and client/customers as their most important partners with both recording the highest mean score of 2.50 and the small size companies regarded clients or customers as their most important partners with a mean score of 2.45.
As for the services sector, large size companies considered other companies within the company group and suppliers of equipment, materials and components as their most important partners with a mean score of 2.0 for each partner. Medium size companies found that suppliers of equipment, materials and components are their main partners with a mean score of 2.67 while for small companies suppliers of equipment, materials and components is the most important with the highest mean score of 2.58.
On the whole the findings indicated that even though there are some kinds of collaboration with other parties as innovation partners, the low mean score values pointed out that the companies felt that innovation partners are not very important to them.
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Figure 5.32 Degree of Innovation Cooperation and Importance of Partners Based on Business Sectors and Company Size
Note: Mean indicator: 0 = Not relevant, 1= Least important, 2= Moderately important, 3 = Highly important
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Figure 5.32 Degree of Innovation Cooperation and Importance of Partners Based on Business Sectors and Company Size
Note: Mean indicator: 0 = Not relevant, 1= Least important, 2= Moderately important, 3 = Highly important
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Box 9: Process and Marketing Innovations - Zaman Ice Tube Sdn. Bhd.
Zaman Ice Tube Sdn. Bhd. is an ice-making business located in Terengganu that was established in 2002. The company’s main products are ice - cylindrical tube ice in 1.5kg/10kg bags, ice �lakes for �ishery industry, and ice blocks. The products are packaged in plastic bags ready for consumer purchase at sales point.
For the process innovation in the water treatment, the company took the initiative to treat the water using its own designed and built system, before pumping into the icing machine.
The water treatment consists of 3 stages of �iltration – sand �ilter stage, activated carbon stage and �ine �ibre �ilter bag, and a �inal stage of Ultra Violet (UV) light treatment stage. The UV treatment is to ensure of the elimination of bacterial life.
As ice products are common product in the market, the company expects competition. From its own survey, there are 3 other ice making companies operating from Kuala Terengganu.
Thus the company implements speci�ic marketing innovation strategies to gain and hold market share. These include placements of freezer boxes at customers’ sites, and speci�ic customer engagements and incentives especially during festive seasons. The company also operates its own Corporate Social Responsibility (CSR) by providing hampers and free supply of ice to selected mosques during Ramadhan.
The company operates a �leet of 23 vans to cover the whole Terengganu market. The drivers, whom the company realises are the face of the company, are paid a basic plus bonus incentives based on total monthly sales. The drivers and production staff are continuously trained especially in cleanliness and health matters, so that an environment of health culture exists within the company. Recognising that health and cleanliness are important issues in the market, the company is in the process of applying for Halal and GMP certi�ications.
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