MOVING FORWARD & CON- CLUSIONS
CHAPTER 8: WAY FORWARD AND CONCLUSIONS
8.1 Where We Are Now – in a Nutshell
In this section, overall findings of the study are summarised in Table 8.1 below comprising all the key items from Company Profile, Innovation Activities, and International Comparisons.
Table 8.1 Summary of Key Items and Study Findings
Key Items Findings
Company Profile Innovative respondents based on
states »» Highest number of respondents – Selangor.
»» Lowest number of respondents - Perlis and F.T. Putrajaya.
Innovative and non-innovative companies based on business sectors
»» Manufacturing sector - Non-Innovative companies are higher than innovative companies.
»» Services sector - Innovative companies are higher than non- innovative companies.
Companies Classification Based on
Year of Establishment »» Highest number of respondents - companies established between 2005 – 2009 by both sectors.
Size of companies based on
business sectors »» Highest number of respondents - Small size companies in both sectors followed by medium and large size companies. Companies Annual Sales based on
Sectors »» More than RM6 Million for both sectors.
Expenditure on Innovation
Activities Based on Sectors »» Less than RM25,000.00 for both sectors.
Product Innovation Product Innovation Activities
Based on Business Sectors »» Manufacturing sector - “new or significantly improved product”.
»» Services sector - “new or significantly improved services”.
Developers of New Product or Significantly Improved Products Based on Business Sectors
»» Both sectors – mainly by other companies or institutions (open innovation).
Novelty of New Product or Significantly Improved Products Based on Business Sectors
»» Both sectors - introduced products that are only new to their firm.
Comparison of Product Innovation Introduced Based on Business Sectors and Company Size
»» Small companies contributed the highest number of “new or significantly improved product” in manufacturing sector and “new or significantly improved services” in services sector.
Process Innovation Process Innovation Activities
Based on Business Sectors »» Manufacturing sector - “new/ significantly improved method of manufacturing”.
»» Services sector - “new/ significantly improved supporting activities”.
Table continued to the next page CHAPTER 8: WAY FORWARD AND CONCLUSIONS
135
CHAPTER 8: WAY FORWARD AND CONCLUSIONS
8.1 Where We Are Now – in a Nutshell
In this section, overall findings of the study are summarised in Table 8.1 below comprising all the key items from Company Profile, Innovation Activities, and International Comparisons.
Table 8.1 Summary of Key Items and Study Findings
Key Items Findings
Company Profile Innovative respondents based on
states »» Highest number of respondents – Selangor.
»» Lowest number of respondents - Perlis and F.T. Putrajaya.
Innovative and non-innovative companies based on business sectors
»» Manufacturing sector - Non-Innovative companies are higher than innovative companies.
»» Services sector - Innovative companies are higher than non- innovative companies.
Companies Classification Based on
Year of Establishment »» Highest number of respondents - companies established between 2005 – 2009 by both sectors.
Size of companies based on
business sectors »» Highest number of respondents - Small size companies in both sectors followed by medium and large size companies.
Companies Annual Sales based on
Sectors »» More than RM6 Million for both sectors.
Expenditure on Innovation
Activities Based on Sectors »» Less than RM25,000.00 for both sectors.
Product Innovation Product Innovation Activities
Based on Business Sectors »» Manufacturing sector - “new or significantly improved product”.
»» Services sector - “new or significantly improved services”.
Developers of New Product or Significantly Improved Products Based on Business Sectors
»» Both sectors – mainly by other companies or institutions (open innovation).
Novelty of New Product or Significantly Improved Products Based on Business Sectors
»» Both sectors - introduced products that are only new to their firm.
Comparison of Product Innovation Introduced Based on Business Sectors and Company Size
»» Small companies contributed the highest number of “new or significantly improved product” in manufacturing sector and “new or significantly improved services” in services sector.
Process Innovation Process Innovation Activities
Based on Business Sectors »» Manufacturing sector - “new/ significantly improved method of manufacturing”.
»» Services sector - “new/ significantly improved supporting activities”.
Table continued to the next page CHAPTER 8: WAY FORWARD AND CONCLUSIONS
136
NATIONAL SURVEY OF INNOVATION 2015
Key Items Findings
Process Innovation Developers of Process Innovation
(Closed Innovation) »» Manufacturing sector - “Supporting activities”.
»» Services sector - “Logistic” and “Supporting activities”.
Developers of Process Innovation
(Joint Innovation) »» Manufacturing sector - “Logistic” and “Methods”.
»» Services sector - “Logistic”.
Developers of Process Innovation
(Open Innovation) »» Manufacturing sector - “Methods”.
»» Services sector - “Supporting activities”.
Marketing Innovation Marketing Innovation Activities
Based on Business Sectors »» Manufacturing sector - “new/ improved method of product design”.
»» Services sector - “new/ improved promotion or pricing”.
Developers of Marketing
Innovation (Closed Innovation) »» For both sectors - “Product Promotion or Pricing” and
“Product Design/ Packaging”.
Developers of Marketing
Innovation (Joint Innovation) »» For both sectors - “Product distribution/ placement” and
“Product design/ placement”.
Developers of Marketing
Innovation (Open Innovation) »» Manufacturing sector - “Product Distribution/ Placement”.
»» Services sector - “Product Design/ Packaging” and followed by “Product Distribution/ Placement”.
Comparisons of Marketing Innovations Based on Business Sectors and Company Size
»» Services sector - large companies contributed the highest number of “new/ improved product promotion”.
»» Manufacturing sector - the trend of all marketing innovations are almost similar to each other.
Organisational Innovation Organisational Innovation
Activities Based on Business Sectors
»» Manufacturing sector - “new/ improved workplace organisation”.
»» Services sector - “new/ improved methods in business practices”.
Comparison of Organisational Innovation Based on Business Sectors and Company Size
»» Services sector - small companies contributed the highest number of “new/ improved methods in firm’s business practice”.
»» Manufacturing sector - large companies contributed the highest number of “new/ improved workplace organisation”.
Status of Innovation Activities Abandoned and on-going
innovation Activities Based on Business Sectors
»» Both sectors - “Still on-going innovation activities at the end of 2014”.
Comparison of Abandoned or on- going Innovation Activities Based on Company Size
»» Both sectors - all companies regardless of their size show a higher rate on “Still on-going innovation activities at the end of 2014”.
Table continued to the next page
137
Key Items Findings
Ratings and Effects of Innovation Activities Rating on Importance of Innovation
Activities Based on Business Sectors »» Services sector - “Getting new products to the market quickly”.
»» Manufacturing sector - “Making efficient use of R&D expenditure” followed by “Getting new products to the market quickly” and “Bringing breakthrough technologies to the market”. Innovation Activities based on Business
Sectors »» Services sector - “Training”.
»» Manufacturing sector - “Acquisition of machinery, equipment and software”.
Degree of Importance of Objectives on Innovation Activities based on Business Sectors
»» For both sectors – “To improve product quality”.
The Impact of Marketing and Organisational
Innovation Activities based on Company Size »» For all company sizes – “Improved quality of goods and services”.
Effects of Product and Process Innovations
based on Business Sectors »» For both sectors – “Improved quality of goods and services”.
Effects of Marketing and Organisational
Innovation based on Business Sectors »» For both sectors – “Improved quality of goods and services”.
Comparison on Effects of Marketing and Organisational Innovation Based on Company Size
»» Large companies in both sectors illustrated the highest score on “Improved quality of goods or services” and “Reduced time to respond to customer or supplier needs” as compared to medium and small sized companies.
Government Support on Innovation Activities Government Support on Innovation
Activities based on Business Sectors »» Services sector - “Technical consultancy services”,
“Technical support services” and “Duty free to import machine/ equipment”.
»» Manufacturing sector - “Technical support services” and “Duty free to import machinery/ equipment”.
Comparison of Government Support
Received based on Company Size »» Generally, small companies received more supports compared to large and medium sized companies.
Reasons for not getting Government Support »» Company is not aware of the incentives available.
Funding of Innovation Activities Funding of Innovation Activities:
Manufacturing Sector »» The majority of the companies using “Own Source” for innovation activities.
Funding of Innovation Activities: Services
Sector »» The majority of the companies using “Own
Source” for innovation activities. Companies using ‘Own Source’ to fund
innovations based on Company Size »» Large and medium sized companies - process and organisational innovations.
»» Small sized companies - product, marketing and process innovations.
Companies using ‘Private Source’ to fund
innovations based on Company Size »» Large sized companies - process and marketing innovations.
»» Small and medium sized companies - product and process innovations.
Table continued to the next page CHAPTER 8: WAY FORWARD AND CONCLUSIONS
137
Key Items Findings
Ratings and Effects of Innovation Activities Rating on Importance of Innovation
Activities Based on Business Sectors »» Services sector - “Getting new products to the market quickly”.
»» Manufacturing sector - “Making efficient use of R&D expenditure” followed by “Getting new products to the market quickly” and “Bringing breakthrough technologies to the market”.
Innovation Activities based on Business
Sectors »» Services sector - “Training”.
»» Manufacturing sector - “Acquisition of machinery, equipment and software”.
Degree of Importance of Objectives on Innovation Activities based on Business Sectors
»» For both sectors – “To improve product quality”.
The Impact of Marketing and Organisational
Innovation Activities based on Company Size »» For all company sizes – “Improved quality of goods and services”.
Effects of Product and Process Innovations
based on Business Sectors »» For both sectors – “Improved quality of goods and services”.
Effects of Marketing and Organisational
Innovation based on Business Sectors »» For both sectors – “Improved quality of goods and services”.
Comparison on Effects of Marketing and Organisational Innovation Based on Company Size
»» Large companies in both sectors illustrated the highest score on “Improved quality of goods or services” and “Reduced time to respond to customer or supplier needs” as compared to medium and small sized companies.
Government Support on Innovation Activities Government Support on Innovation
Activities based on Business Sectors »» Services sector - “Technical consultancy services”,
“Technical support services” and “Duty free to import machine/ equipment”.
»» Manufacturing sector - “Technical support services” and “Duty free to import machinery/
equipment”.
Comparison of Government Support
Received based on Company Size »» Generally, small companies received more supports compared to large and medium sized companies.
Reasons for not getting Government Support »» Company is not aware of the incentives available.
Funding of Innovation Activities Funding of Innovation Activities:
Manufacturing Sector »» The majority of the companies using “Own Source” for innovation activities.
Funding of Innovation Activities: Services
Sector »» The majority of the companies using “Own
Source” for innovation activities.
Companies using ‘Own Source’ to fund
innovations based on Company Size »» Large and medium sized companies - process and organisational innovations.
»» Small sized companies - product, marketing and process innovations.
Companies using ‘Private Source’ to fund
innovations based on Company Size »» Large sized companies - process and marketing innovations.
»» Small and medium sized companies - product and process innovations.
Table continued to the next page CHAPTER 8: WAY FORWARD AND CONCLUSIONS
138
NATIONAL SURVEY OF INNOVATION 2015
Key Items Findings
Funding of Innovation Activities Companies using ‘Public
Source’ to fund innovations based on Company Size
»» Large sized companies - process innovations.
»» Medium and small sized companies - marketing innovations.
»» Small sized companies – product innovations.
Companies using ‘Other Source’ to fund innovations based on Company Size
»» Large and medium sized companies - organisational innovations.
»» Small sized companies - product and organisational innovations.
Innovation Cooperation Innovation Cooperation and
Importance of the Partners based on Business Sectors
»» For both sectors – “client/ customers” and “suppliers of equipment, materials and components”.
Degree of Innovation
Cooperation and Importance of Partners based on Business Sectors and Company Size
»» For both sectors - “client/ customers” and “suppliers of equipment, materials and components”” except for large
services companies which has “other companies within company group”, “supplier of equipment, materials and components” and
“universities or other higher education institutes” as their main collaborators.
Intellectual Properties Rights Status Intellectual Properties
Applied and Granted based on Business Sectors
»» The majority of the companies in both sectors applied and granted with Trademarks and followed by Patents.
Relative Importance of IP Protection Methods based on Business Sectors
»» Manufacturing sector - Trademarks and Registration of design
»» Services sector - Confidentiality and Trade secret.
Innovation Barriers Factors Hampering
Innovation Activities in both Sectors
»» Cost and Knowledge Factor.
International Comparisons Community Innovation
Survey (CIS-8) »» Malaysia placed in the 31st position for innovative companies.
Ranking in the Global Competitiveness Report (GCR) 2015 - 2016
»» Malaysia’s current ranking for GCI is in the 18th position, which has improved from the 20th position in 2014-2015.
Ranking for Components of Innovation and Sophistication Factor
»» IF: Innovation Factor (20) , BS: Business Sophistication Factor (13), IBS: Innovation and Business Sophistication Factor (17) - Malaysia’s position is better than China, Thailand and Indonesia.
Comparison of Global Innovation Index (GII) for 2015 and 2014
»» Malaysia’s 2015 ranking for GII is in the 32nd, which is higher by 1 point than in the 2014 GII ranking.
Innovation Efficiency Index
Ranking »» Malaysia’s rank for Innovation Efficiency Index based on region group (SEAO) is in the 8th position, which is better than Thailand (10th position) and Indonesia (14th position).
Comparison of Global Patent
Applications in 2014 »» Malaysia’s rank for Global Patent Applications in 2014 based on Patent Applied is in the 14th position, which is better than Philippines (15th position).
138
NATIONAL SURVEY OF INNOVATION 2015
Key Items Findings
Funding of Innovation Activities Companies using ‘Public
Source’ to fund innovations based on Company Size
»» Large sized companies - process innovations.
»» Medium and small sized companies - marketing innovations.
»» Small sized companies – product innovations.
Companies using ‘Other Source’ to fund innovations based on Company Size
»» Large and medium sized companies - organisational innovations.
»» Small sized companies - product and organisational innovations.
Innovation Cooperation Innovation Cooperation and
Importance of the Partners based on Business Sectors
»» For both sectors – “client/ customers” and “suppliers of equipment, materials and components”.
Degree of Innovation
Cooperation and Importance of Partners based on Business Sectors and Company Size
»» For both sectors - “client/ customers” and “suppliers of equipment, materials and components”” except for large
services companies which has “other companies within company group”, “supplier of equipment, materials and components” and
“universities or other higher education institutes” as their main collaborators.
Intellectual Properties Rights Status Intellectual Properties
Applied and Granted based on Business Sectors
»» The majority of the companies in both sectors applied and granted with Trademarks and followed by Patents.
Relative Importance of IP Protection Methods based on Business Sectors
»» Manufacturing sector - Trademarks and Registration of design
»» Services sector - Confidentiality and Trade secret.
Innovation Barriers Factors Hampering
Innovation Activities in both Sectors
»» Cost and Knowledge Factor.
International Comparisons Community Innovation
Survey (CIS-8) »» Malaysia placed in the 31st position for innovative companies.
Ranking in the Global Competitiveness Report (GCR) 2015 - 2016
»» Malaysia’s current ranking for GCI is in the 18th position, which has improved from the 20th position in 2014-2015.
Ranking for Components of Innovation and Sophistication Factor
»» IF: Innovation Factor (20) , BS: Business Sophistication Factor (13), IBS: Innovation and Business Sophistication Factor (17) - Malaysia’s position is better than China, Thailand and Indonesia.
Comparison of Global Innovation Index (GII) for 2015 and 2014
»» Malaysia’s 2015 ranking for GII is in the 32nd, which is higher by 1 point than in the 2014 GII ranking.
Innovation Efficiency Index
Ranking »» Malaysia’s rank for Innovation Efficiency Index based on region group (SEAO) is in the 8th position, which is better than Thailand (10th position) and Indonesia (14th position).
Comparison of Global Patent
Applications in 2014 »» Malaysia’s rank for Global Patent Applications in 2014 based on Patent Applied is in the 14th position, which is better than Philippines (15th position).
139