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turnover of less than RM5 million (54%). The limited company seems to dominate innovation compared to other types of company such as public listed, partnership and sole proprietorship. However, the shared percentage seems to reduce from 1997-1999 to 2000-2001, and from 2000-2001 to 2002-2004.
In 2002-2004, the main drivers of innovation have been the government support through various innovation grants, and the reduction of environmental damage. Compared to past years, innovation objectives were mainly for the purpose of product improvement and market expansion. Diversion of objectives can be observed over the years, with more dependency on the government.
6.3 INNOVATION DRIVERS
There is a compelling need for Malaysia to strengthen its capacity for innovation, thus accelerating the role of innovation in the country’s economic development. MOSTI, with strong support from other agencies is instrumental in harnessing science, technology and innovation as the key driver in raising the national capacity to acquire and utilize e-knowledge and to foster innovation. In this regard, efforts have been taken to measure the extent of innovation in the country and to determine the nature of government intervention in promoting innovation through R&D in science and technology.
6.3.1 Market Driven
Market driven innovation model can be described as innovations driven by the need of the market which inspires the knowledge entrepreneurs, through their best knowledge in science and technology, to innovate and produce technological innovation that meet the market. This approach can provide rapid commercialization target that immediately fulfill what the people want from the product. Past report indicates that market driven approach had been the trend in 1997-1999 report as well as in 2000-2001 report. This was shown through high percentages (83% and 77% respectively) of innovation within these periods, which were driven by the need for improving product quality, as well as for market opening and expansion. Whereas the percentage share of these drivers were very low during 2002-2004 reporting period (1.6% and 7.5% respectively), and it is depending on government stimulant.
6.3.2 Technology Driven
Malaysia’s innovation model can be described as a balance approach between technology driven innovation and market driven innovation. In technology driven model, scientist are funded for R&D through various government grants in any area that has market potential. The technology-based innovation will be developed organically, and thus eventually commercializing their ideas or products for the global market. In 2002-2004, this approach had been the main driver of innovation, where government support became the major source of contributor. The next sub section provides detail information on the contribution of the Malaysian government in boosting innovation in the country through various grants.
6.3.3 Government Incentives as Innovation Driver
The previous survey had indicated the importance of government support in promoting innovation. Most of these supports were made through various types of government grants disbursed to various agencies private and public in encouraging R&D.
Malaysian Science & Technology Indicators 2008 Report Malaysian Science & Technology Indicators 2008 Report 6.3.3.1 Demonstrator Applications Grant Scheme (DAGS)
The Demonstrator Applications Grant Scheme (DAGS) is established to facilitate the growth of bottom-up innovations which are indigenous in design, contain local content and culturally relevant to meet the demand of the Malaysian community. The report in the figure below is made based on the projects and expenses in 2007.
Figure 6.1: Amount Approved for DAGS Applications, 2007
Source: Ministry of Science, Technology and Innovation (MOSTI)
Table 6.1: Number of Project Applications and Approvals for DAGS, 2007
Year Industry No. of Applications No. of Approvals
2007
Social Digital Inclusion 5 5
E-Public Services 3 3
Total 8 8
Source: Ministry of Science, Technology and Innovation (MOSTI)
The figure and table above show the number of applications and approvals for DAGS in 2007. There were a total of eight applications in 2007. From the total, 5 were on Social Digital Inclusion projects and the remaining three were E- Public Services projects. The total amount applied for the grant was RM23.4 million. Total amount of RM17 million was granted for 8 approved applications.
6.3.3.2 Commercialization of Research & Development Fund (CRDF)
Commercialization of Research & Development Fund (CRDF) was established to provide partial grant to qualified R&D projects for commercialization purposes. The role of CRDF is to facilitate the development of new products and production processes, and to assist participating companies to start-up production capacity.
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Malaysian Science and Technology Indicators 2008 Report
Figure 6.2: Number of Projects Applied for CRDF by Industrial Sector, 2005 – 2007
Source: Malaysian Technology Development Corporation (MTDC)
A total of 75 applications were made for CRDF since year 2005 to 2007 as shown in the above figure.
The highest applications were made in biotechnology and industrial products with 16 applications each. This is followed by electrical & electronics with 10 applications.
Figure 6.3: Number of Projects Granted for CRDF by Industrial Sector, 2005 – 2007
Source: Malaysian Technology Development Corporation (MTDC)
Malaysian Science & Technology Indicators 2008 Report Malaysian Science & Technology Indicators 2008 Report Fifty two projects valued at RM95.54 million were approved in year 2005-2007 as shown in Figure
6.3. of projects. Most of the projects funded were in industrial products and biotechnology. Based on the amount of grants and the number of projects sponsored by the government, the trend in innovation within this reporting years should indicate the technological driven which attributed mainly by government injections.
6.4 INTERNATIONAL COMPARISON
Table 6.2: International Ranking in Innovation Index
Country Rank
United States 1
Germany 2
Sweden 3
United Kingdom 4
Singapore 5
Japan 14
Malaysia 25
China 47
Source: Global Innovation Index (GII)
According to Global Innovation Index (GII) 2008-2009, of 130 ranked countries, the United States of America (USA) has been the global leader in innovation for many years. It has been in the top rank due to its consistent commitment to innovation for over 100 years. This is followed by Germany, Sweden and the United Kingdom. Singapore moved up two notches from 7th place to 5th place. Surprisingly, Japan was relegated to 14th place from 4th place in the last ranking. Malaysia was not as bad in the ranking at the 25th place.
6.5 CONCLUSION
This chapter provides an overview of innovation in Malaysia by taking into account the absence of the most current survey data. The survey is expected to provide detail information from various industries on their involvement in various innovative works and activities. However, analysis of past surveys, and discussions on the drivers of innovation, as well as international comparisons made when writing this chapter, has allowed us to provide an overview of what the current and future status for Malaysian innovation hold.
The trends in innovation have been observed to be different quite significantly from the period of 1997- 1999 to the period of 2002-2004. These differences can be seen in the drivers of innovation, the objectives of innovation, and types of innovation. Over the years, the government has played a very significant role in promoting innovation in the country. In the past, innovation might have been restricted to a large scale companies with abundant of innovation and development budgets, and which efforts most likely driven by the demand of the market. The later trend in innovation has not seen much restriction in the size and type of companies to engage in innovation. While the focus has been given more on biotechnology and industrial innovation, current trend in innovation has not placed restriction on the scale and type of industry.
The technology driven innovation has opened for opportunities to many firms and individual researchers
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from IHLs and GRIs to apply for government grants to conduct research and innovate in commercialized products.
Current and future innovation can be seen through the improvement of various biotechnology, machinery and ICT products. Innovation within the industries and public institutions will continue to take place as long as the support from the government continues to grow. Being aware of the importance of innovation, firms will need to engage more in knowledge management and ensure they are ahead of others in terms of competition.
International comparison based on Global Innovation Index of 130 ranked countries, has indicated the high position of Malaysia (25th position) in the face of world innovation. Malaysia has been very active in innovation and the trend is expected to continue in the future.
Malaysian Science & Technology Indicators 2008 Report Malaysian Science & Technology Indicators 2008 Report
MALAYSIA Chapter 7
Malaysian Science & Technology Indicators 2008 Report Malaysian Science & Technology Indicators 2008 Report 7.1 INTRODUCTION
Intellectual property refers to creations of the mind including inventions, literary and artistic works, and symbols, names, images, and designs used in commerce. It is divided into two categories which are industrial property and copyright. Industrial property includes inventions (patents), trademarks, industrial designs and geographic indications. Copyright includes literary and artistic works such as novels, poems and plays, films, musical works, artistic works such as drawings, paintings, photographs and sculptures, and architectural designs. Rights related to copyright include those of performing artists in their performances, producers of phonograms in their recordings, and those of broadcasters in their radio and television programmes.
This chapter analyzes Intellectual Property scenario in Malaysia and a few other selected countries. More focus is given on patenting trend in Malaysia which includes the patenting process that is being practiced by the Intellectual Property Corporation of Malaysia (MyIPO). There are also details on patent applications filed and granted by MyIPO as well as patents granted based on field of technology.
This chapter also provides concise views on trademark, and industrial design trends in Malaysia. Finally, it also includes international comparison sourced from the United States Patent and Trademark Office (USPTO). Excluded in this chapter is copyrights due the mixed of information with works that are not related with science and technology.
7.2 INTELLECTUAL PROPERTY IN MALAYSIA 7.2.1 Patenting
According to MyIPO, a patent is an exclusive right granted for an invention, which is a product or a process that provides a new way of doing something, or offers a new technical solution to a problem.
7.2.2 Trademark
A Trade Marks is a mark which distinguishes the goods and services of one trader from those of another.
A mark includes words, logos, pictures, names, letters, numbers or a combination of these. Trade Marks is used as a marketing tool to enable customers in recognizing the product of a particular trader.
(Source: MyIPO) 7.2.3 Industrial Design
An industrial design is the ornamental or aesthetic aspect of an article. The design may consist of three- dimensional features such as the shape and configuration of an article, or two-dimensional features, such as pattern and ornamentation. The design features must be applied to an article by any industrial process or means of which the features in the finished article appeal to eye. (Source: MyIPO)