This section presents the awareness of respondents from the manufacturing and services sectors regarding the National Innovation Model (NIM, 2007). Table 5.26 shows that a majority of respondents recorded highest percentage of 44%, 44% and 45% making a point that they
have never heard of NIM 2007 vision to transform the country from a resource based economy to innovation based economy, to adopt a balanced approach to market-driven and technology- driven innovation and to raise the country’s capacity for knowledge, creativity and innovation respectively. Only a minority responded that they fully understand the vision and mission of the NIM 2007.
Knowledge factor
Lack of qualified personnel 1.79 1.65 1.72
Lack of information on technology 1.46 1.39 1.42
Lack of information on markets 1.49 1.40 1.45
Difficulties in finding co-operation partners for
innovation 1.54 1.39 1.47
Weakness of intellectual property knowledge and
rights 1.40 1.35 1.38
Average mean 1.54 1.44 1.49
Market factor
Market dominated by established enterprise 1.75 1.32 1.54 Uncertain demand for innovative goods and services 1.81 1.30 1.56
Innovation is easy to imitate 1.60 1.18 1.39
Average mean 1.72 1.27 1.50
Organisational factor
Attitude of personnel towards change 1.66 1.54 1.60
Attitude of managers toward change 1.59 1.32 1.45
Managerial structure of enterprise 1.48 1.30 1.39
Inability to devote staffs to innovation activities due to
production requirement 1.41 1.30 1.35
Lack of infrastructure (e.g. building) 1.41 1.21 1.31
Lack of facilities (e.g. Machine, equipment) 1.62 1.34 1.48 Lack of networking with research institutions (e.g.
Universities, SIRIM, PORIM, FRIM, etc.) 1.37 1.13 1.25
Average mean 1.51 1.31 1.40
Regulatory factor/ public policy
Insufficient flexibilities of regulation or standards 1.32 1.12 1.22 Limitation of science and technology public policies 1.07 0.93 1.00
Average mean 1.20 1.03 1.11
Other factors
No need to innovate due to earlier innovations. 0.76 0.71 0.73 No need because lack of demand for innovation 0.69 0.84 0.76
Average mean 0.73 0.78 0.75
Total Average Mean 1.43 1.12 1.34
Note: Mean indicator: 0 = not relevant, 3 = highly important
Figure 5.44 shows the comparison of respondents’
level of awareness on the NIM based on the sectors. In manufacturing sector, medium size companies recorded higher mean value of 2.65, 2.52, 2.54 respectively for awareness of NIM to transform the country from resource based to innovation based economy, to adopt a balanced
approach to market driven and technology driven innovation and to raise the country’s capacity for knowledge, creativity and innovation. In the service sector, large size companies recorded highest mean value of 2.46, 2.43, and 2.47 respectively for the same objectives of NIM.
Table 5.26:Rating of National Innovation Model Awareness
National Innovation Model Never Heard
Heard but don’t understand
Little
Understanding Understand Fully Understand The vision is to transform the
country from a resource based economy to innovation based economy
44% 17% 19% 12% 8%
The vision is to adopt a balanced approach to market- driven and technology-driven innovation
44% 17% 21% 11% 7%
The mission is to raise the country’s capacity for knowledge, creativity and innovation
45% 15% 18% 13% 9%
Figure 5.40: Comparisons on Level of Awareness of NIM Based on Business Sectors and Company Size
2.322.31 2.40 2.652.52 2.54 2.212.32 2.30 2.46 2.43 2.47 1.841.92 1.88 2.452.22 2.23
The national vision of NIM is to transform the country from a resource based economy to innovation based economy.
The national vision of NIM is to adopt a balanced approach to market-driven and technology- driven innovation
The national vision of NIM is to raise the country’s capacity for knowledge, creativity and innovation and nurture
“first class mentality”among organisation
Business Sectors and Company Size
Small Medium Large
Small Medium Large
3.00 2.00
1.00 Mean 0.00
NATIONAL SURVEY OF INNOVATION 2012
Box 5.5
SUCCESS STORY OF MALAYSIA AIRPORTS BERHAD
Today’s Malaysia Airports Holding Berhad (MAHB) is a continuing success story beginning as separate operational entity for management and maintenance of airports, in 1991, under the Department of Civil Aviation (DCA) being the regulatory body, turning into a licensed company for airport operation in 1992 and finally a public limited company in 1999. Being under governmental regulations as well as in international aviation industry, Malaysia Airports Berhad is intimately involved in continuous innovation for better customer service and competitiveness.
Company’s transformation initiative programs started off by introducing innovative cross functional teams (CFTs) as a part of its Continuous Improvement Program (CIP). These cross functional teams from various departments work together to improve efficiency and quality of services through incorporating spend management and value management strategies. The superior value management processes in MAHB has led other government institutes also to replicate them and bring in improvements.
Although the passenger movements increased day by day, call for domestic and international competition was also aroused. To counteract and surmount this call MAHB had to bring in commercial activities and initiatives of like establishment of Kiosk to cater eleventh hour utility needs of passengers and generated about half billion additional revenue. Other innovative endeavours of MAHB included K-pax project for capital expansion with the help of CFT procurement and lean management. In 2009, step forward was taken for the development of Low Cost Carrier Terminal (LCCT) for efficient operational services regarding connectivity of the passengers to the main terminal, better and spacious parking facility and integrated hub for taxis and buses.
Company believes the international competition, government’s regulations and company’s internal drive to pursuit its goals as the main benchmarks for bringing in innovations. However, company’s top management highly values the importance of integrity and trust in changing mind-sets of people towards change and innovation. Company invests in its employees to get international exposure and encourages them to incorporate their learning experiences under its Airport Service Quality program. It has also launched its score card and the efficiency standards are maintained and improved through DICE (Duration, Integrity, Commitment and Effort) model.
Reward strategy is also opted to increase healthy competition among employees for better performance regarding efficiency and innovation in domestic and international podium. AIS, ICC and HERO awards are among the reward initiative programs. Being pioneers in the technology management in airport management, MAHB uses Total Airport Management System (TAMS) consisting of more than 40 systems and airport functions including air traffic management, baggage handling, passenger check-in and flight information display.
Being an operator and manager of 39 domestic, international and landing ports, Malaysia Airport Holding Berhad, has managed to get first position in Asia and sixth position in world ranking as airport operating company through its endless efforts for process and product/service innovations. Some of its recent achievement awards include Top Halal Friendly Airports for 2013, Gold Award for Excellence in Public Relations Internal and the Silver Award for Public Relations Corporate Communications, World’s Best Immigration Service in the 2013 and Skytrax World Airport Award as the most prestigious accolade for the world airport industry. Establishment of KLIA-2 and 3rd runway projects are the future milestones of MAHB to be a market leader in the aviation industry through process innovation. Moreover, the company intends to go for business model innovation also through establishment of joint ventures as business partners.