Science Outlook 2015

This can be achieved by carving out a role National STI Agendafor a central coordination body, which willensure seamless progression across various Ideation, Advisory & Monitoringstages of the STI Management Cycle anddevelop overarching National STI Agenda 81 policies Planning(Figure 1-6) for a unified execution strategy. 56 STI related ImplementationThe role of such a body should encompass policiescontinuous review of policy implementationfor establishing milestones; aligning STI 458 + entitiesprogrammes and initiatives with ETP 24 ministries 129 GLCsobjectives; and putting in place effective 132 departments / agenciesgovernance and reporting mechanism.Such a body can also deploy a strategic 21 IHLstool – Spaghetti Map on STI Governance 152 statutory bodies / commissions / institutes– to establish the degree of cross-pollinationof ideas, budgets, objectives, action and 15 state governmentsoutcomes that is taking place amongstvarious S&T players and proponents.Effectively, the solution could be todetermine synergies and action towardsone common vision. Figure 1-6. An overarching National STI Agenda for a unified execution strategy 45

2 IDEATIONStrengthen the STI Management Cycle: MONITORING &Focus on Continuous Monitoring and EVALUATIONEvaluation, as well as “Ideation”The weakest link (as it seems, looking at STI ADVISORYthe STI Management Cycle) is “Monitoring MANAGEMENT PLANNINGand Evaluation” and the “Ideation Process”(Figure 1-7). What we need is a well-defined CYCLEmonitoring mechanism to eliminate lapses,duplication and obsolete elements in IMPLEMENTATIONinstitutional environment. There has beenlimited structured industry and peer review Figure 1-7. STI Management Cycleundertaken to measure the effectivenessof various STI policies. Similarly, there existslimited documented rationale, supportedby evidence on various amendments,recommendations made when transitioningfrom one policy to another policy (Table 1-2and Further Reading 1-5). This establishesthe need to conduct some base-linestudies or in-depth review of various STIPolicies to establish Malaysia’s current STIcapacity to meet various targets and itspotential to emerge as an STI-powerednation.46

Korean Institute of S&T Evaluation and Table 1-2. Malaysia’s progress in STI ManagementPlanning (KISTEP) model can be used inMalaysia, as it advocates an “Accountability” STI POLICIESframework, emphasising on a systematicevaluation and monitoring mechanism. It ACTION The National Science The Second National Science National Policy onproposes a balance between quantitative and PLAN Science, Technologyqualitative performance monitoring and Achieved & Technology Policy & Technology Policy & Plan & Innovation (2013-2020)evaluation to analyse, defend andcommunicate value of R&D efforts, its impact (1986-1989) of Action (2002-2010)and contribution to the nation. Achieve at least 60 researchersSuch “evaluation with accountability” also per 10,000 workforce by 2010.allows time for qualitative assessments withquantitative data process. For instance, the Increasing the number ofassessment for R&D could go beyond number post-graduate students inof patents and determining their commercial science, technical & engineeringpurpose and technology value evaluation. On disciplines to at least 10% oftop of the number of R&D publications, the the undergraduate populationassessment could review the impact factor or by 2005.the citation index in two to three years. In theprocess, the KISTEP model can help build an Not achieved The government to Increase public & private sectoreffective communication medium between gradually increase the investments in R&D includingmultiple stakeholders to include researchers, GERD allocation to infrastructure developmentthe government, ministry and the science 1.5% targeting for gross nationalcommunity, who may appreciate the evaluation R&D expenditure level of atstrategy or action required to meet the vision. least 1.5% of GDP by 2010. Adoption of 60:40 ratio of students pursuing science, technical & engineering disciplines in upper secondary schools & universities. On-going Increase GERD to at least 2.0% of GDP by 2020 Sources: MASTIC 2014a; MOSTE 1986; MOSTE 2003; MOSTI 2013 Increase ratio of researchers per 10,000 workforce to at least 70 by 2020. 47

3 A Parliamentary Select Committee on STI 4 will sustain both interest and debate on STIEstablish a Parliamentary Select to go mainstream in the public sphere (akin The proposed Science Act (of Malaysia)Committee on STI to Build Political Will to the environment in the US, where the will be instrumental in setting up a robustand Create Legislative Consensus House of Representatives has a Science, institutional framework on sciencetowards Promoting STI agenda: Space and Technology Committee with a governance.According to the Hansard Analysis jurisdiction over all energy research, The Act will not only signify the(2008-2013), various debates on STI in the development, demonstration as well as Government’s commitment to buildparliament were dominated by queries projects. Similarly, South Korea has about Malaysia’s STI capabilities and capacity butrelated to development projects (Table 90 laws for S&T development and will also help resolve issues of transparency,1-4). Besides, there has been no formal promotion, signifying that legislations are accountability, partnerships etc. In enforcingplatform in the parliament to discuss STI necessary to strengthen STI governance. the Act, STI democratisation could alsoissues, with expert inputs. be a “solution” in itself, if practised under an empowered and authoritative body orTable 1-3. STI-related debates in Parliament institution for tracking and measurement of performance. This would entail moving STI Year 2008 2009 2010 2011 2012 2013 agenda and / or KPIs beyond the science 849 214 344 405 193 202 community, and make it more inclusive by Total STI topics establishing clarity on the role, relevance and benefits to all. STI topics related to nation’s 633 163 188 183 109 108 development 75 76 55 45 56 53 Percentage48

Further Readings1-1 pg. 122 The focus areas and objectives ofMalaysia’s STI policies over the years1-2 pg. 128 Hansard data mining and analysis tomeasure the STI awareness ofMembers of Parliament in Malaysia1-3 pg. 131 Review of STI regime in select countries1-4 pg. 135 Analysis of existing national policies1-5 pg. 138 National STI policies evolutionand achievements 49

0

02 Research, Development and Commercialisation (R,D&C)

Science Outlook 2015

02 Does Public R,D&C Address National By understanding the progress and Priorities, Challenges and Potential identifying gaps, the innovation systemsResearch, Opportunities? framework can be used to diagnose theDevelopment & input and performance of R,D&C.Commercialisation In the past two decades, Malaysia has progressed significantly with developments Where are We Today with the in R,D&C. Achievements include the Evolution of R,D&C and its Success? establishment of quality scientific research institutions, streamlined R&D There has been a steady increase in fund spending, improved university-industry allocation towards R&D from the 1st to collaborations in R&D, better scientific and the 10th Malaysia Plans (MP), covering the engineering talent and achievement of period from 1966 to 2015. These funds were positive commercialisation rates. All these allocated and distributed through various areas have helped Malaysia to achieve high mechanisms (Figure 2-1). While MOSTI was global rankings on its technological the key custodian of R&D funds, over the readiness as well as its capacity and years, other ministries and agencies such as capability for innovation. the Ministry of Health, Ministry of Finance (MOF), Ministry of Plantations Industries However, in recent years, scholars, policy & Commodities, Ministry of Agriculture & makers, industry players, regulators and Agro-based Industry, Ministry of Natural other stakeholders operating in the Resources & Environment, Ministry of ecosystem of STI have raised some Education (MOE), Ministry of important questions on the performance Communications & Multimedia, Ministry of of R&D investments and commercialisation International Trade & Industry (MITI), Ministry efforts. How is R,D&C contributing to the of Human Resources (MOHR) and the overall competitiveness of the country in the Ministry of Natural Resources & Environment STI space? How do we identify and track the have also received some allocations. drivers and determinants of research output or performance? How can we make R&D In the 9MP, there was a diversification of more market-driven with a high commercial the R&D funds across 16 programmes with value? an additional number of recipients. This move benefited more sectors, including To answer these questions, it is important but not limited to, the Multimedia Super to identify the national R&D priority areas, Corridor Pre-Seed Fund (MGS Pre-Seed), which have been in existence since the ScienceFund, InnoFund, Biotechnology 1980s. Despite prioritisation, however, the Commercialisation Grant (BCG), E-Content implementation still lacks continuity and and Information, Communication and focus. There is a need to understand how Technology (ICT). Some GLCs/ Centres of the country is strategising and building its Excellence (COEs) and government-based research capabilities and human capital with programmes were allocated research funds committed investments essential for the following the objective to streamline fund performance of scientific outputs. 53

allocation as a response to poor rates ofcommercialisation and return on investment(Further Reading 2-1).The continuous evolution or directional Figure 2-1. Malaysia’s evolving funding programmes with multiple agencies across the Malaysia Plans.change in the governance of R&D funds Note: The figures for 9MP include funding by MOSTI and exclude funding by MOF, SME Corp. Malaysia, MITI, MOE.signifies the dynamic market forces and Source: NSRC 2013the transformational journey of Malaysia(Further Reading 2-2). Amidst such anenvironment, one of the top-mostdeterminants or measures of R&D scope(as recognised) is the GERD, which isrepresented as a percentage of the GDP.While the current policy sets the targetof increasing Malaysia’s GERD to at least2.0% of the GDP by 2020, it is important toexamine the impact of the increase in GERD.Although Malaysia had seen a rise in GERDfrom 0.5% to 1.13% from 2000-2012(more than double), the country is still farfrom achieving its desired GERD of 2.0%by 2020 (Figure 2-2). Figure 2-2. Gross expenditure on R&D, 2000-2012 Source: MASTIC 2014b54

There was also a corresponding increase in Figure 2-3. Number of researchers, 2000-2012the number of researchers within the labour Source: MASTIC 2014bforce by more than three times, from 15.6researchers per 10,000 labourers in 2000 to Table 2-1. Top three fields accounting for 70% or more, 2004-201257.5 in 2012. The total headcount of researchpersonnel nearly quadrupled from 19,021 in Field of Research 2004 2006 2009 2010 2011 20122006 to 75,257 in 2012 (Figure 2-3). Similarly,the number of researchers with PhD Engineering Sciences / 36.0 32.3 12.0 27.6 24.2 33.7qualifications increased from 7,001 to Engineering and 27.0 63.2 45.5 38.2 10.833,272 in 2006 and 2011 respectively, with Technologies 9.0 34.7nearly 85% of research personnel resident 10.0 6.6 6.6 12.8 25.6within universities and GRIs (Thiruchelvam ICT 72.0 77 81.8 79.7 75.2 70.1et al. 2012). Applied Sciences and TechnologiesThis consistent and positive drift indicates Material Sciences /progress and reflects the Government’s Natural Sciencescommitment to gradually meet the Biotechnologyprojected targets for 2020, which wouldmean, a nearly 77% increase in GERD within Total (%)a span of five years. The R&D allocationsare also limited to the three fields of ICT,engineering sciences (later streamlined withtechnology in 2009) and natural sciences,which collectively dominate more than 70%of total R&D spending (Table 2-1). Accordingto historical data, certain sectors, especiallyICT and biotechnology, have had better R&Dresults than others. The recent, R,D&Cprogramme evaluation by MOSTI alsoshowed that ICT and and biotechnologyhave contributed greatly in terms ofcommercialisation, return on investment,publication and patent generation comparedto other programmes due to the scale effect. Sources: MASTIC 2014a; MOSTE 1986; MOSTE 2003; MOSTI 2013 55

Another important aspect is the composition Figure 2-4. Percentage of R&D spending on applied, basic and experimental research, 2012of the R&D in Malaysia, which in 2012 was Sources: Agency for Science, Technology and Research Singapore 2013; MASTIC 2014b; and Prof Dr Sung Hyunfocused more on applied research (50.5%) Park, President of Korean Academy of Science and Technology (KAST), email communication (December 13, 2014).followed by basic (34.5%) and experimentalresearch (15.0%), respectively (MASTIC 2012).R&D spending by universities was equallyspread between applied and basic research.In 2011, the spending for basic and appliedresearch was RM1,330.9 million andRM1,116.2 million respectively (MalaysianScience and Technology Information Centre(MASTIC 2013). In stark comparison,experimental research received a greateremphasis in other economically advancedAsian countries such as Singapore and SouthKorea (Figure 2-4).The contrast appears to be a naturalprogression as Taiwan and South Korea alsofocused on applied research during theirearly stages of development (in the 1980sand 1990s) to strengthen their industrialR&D. Only in 2008, after industrial R&D hadbeen strengthened and a strong need forbasic research arose, did South Korea andTaiwan allocate more R&D funding for basicresearch.With ever increasing R&D investments, the Figure 2-5. Publications per principal investigator, 2007-2010output or performance is also measured by Source: MOE 2013the number of publications and patentapplications. Publications per principalinvestigator improved significantly, from onein 2007 among research universities to two in2010 (Figure 2-5) .From 2005-2009, Malaysiaemerged as one2of the fastest growingnations in R&D publications, recording a28% growth (Table 2-2). 2 In the US, it is 1.5 publications per principal investigator for total scientific publication and 2.5 for the top 10% of scientific publications meaning that researchers are more productive in publishing the top 10% of journals. Malaysia’s publication count per principal investigator is based on total publications including the humanities and social sciences.56

Table 2-2. Article output and growth (%), Funding for R&D publications is mainly2005-2009 sourced from the premier universities in Malaysia as well as directly from relevantCountry Article Growth (%) Government ministries (Figure 2-6). However, over the years, the public universities haveMalaysia 26, 339 28.42 taken the lead in supporting various R&DChina 1, 063, 743 12.10 initiatives through strategic investments orBrazil 162, 840 10.49 funding. Based on the Malaysian ResearchIndia 8.24 Assessment (MYRA) data, the five researchTaiwan 229, 885 6.86 universities contributed nearly 70% of theSouth Korea 143, 978 5.86 total publications in Malaysia. It alsoTurkey 212, 600 5.85 improved the h-index of the researchersSpain 115, 814 5.62 and institutional citations as well asAustralia 257, 123 5.22 increased the number of patent filing. TheItaly 223, 307 3.49 establishment of five research universitiesSwitzerland 315, 907 3.33 in 2008, accompanied by an injection ofNetherlands 128, 994 3.08 research funds into the MOE, saw a drasticCanada 178, 026 increase in the number of researchers andFrance 337, 453 2.69 publications.United Kingdom 400, 815 2.17Germany 606, 604 1.75 Malaysia has also demonstrated its potentialSweden 550, 575 1.43 through her progress in patenting as wellPoland 115, 069 1.03 as commercialisation activities. For instance, 112, 246 0.93 the patent analysis from 1989-2013Source: NSRC 2013 (Figure 2-7) indicates that Malaysia is slowly progressing in patenting activities. Local patents filed and granted show an increase over the period 1989 – 2013. Significant increase has been recorded since 2005. Among GRIs, MIMOS3 is the top patent filer and the only Malaysian organisation in the Top 500 global companies recognised for PCT filing. 3 As per 2011 data, MIMOS, a Malaysian frontier technology company, created a market funnel of RM1 billion, with 1,001 patent disclosures of which 18% were commercialised. The cumulative target of 10MP for MIMOS is to achieve a RM10 billion market funnel, with 38% IPs commercialised and 20% external R&D funding. 57

Figure 2-6. R&D publications by funding agency Source: Web of Science (Thomson Reuters 2014) Figure 2-7. Patent application and patent granted, 1989-2013 Source: MyIPO 201458

An important finding is that there is a strongcorrelation between output (publicationsand patents), the amount of researchfunding and the number of researchers withPhD qualifications (Figure 2-8). However, thecontribution of human capital or number ofresearchers with PhDs plays a greater rolefor publications and patents than funding(Further Reading 2–3).Figure 2-8. Relationships between R&D spending, human capital, publications and patentsSource: MOE 2013 59

One of the milestones in encouraging Table 2-3. Commercialisation and sales by R,D&C programmes universities to patent their research findings was the launch of the Intellectual Property Fund Projects Commercialised Sales Generated Commercialisation Policy (IPCP) in 2009. Group Approved Projects (RM Million) After the enactment of the IPCP (2009-2013), there were approximately 33 and 29 Creation 334 12 10.1 co-patenting activities for universities MGS Pre-Seed -industries and universities-PRIs respectively 41 -- (Wong & Salmin 2014). This is also evidence Research and Development 33 -- of effective cooperation between ABI 25 -- universities, PRIs and industry for the IFNM 2834 -- exchange of knowledge and skills. Genomics 10 -- ScienceFund The commercialisation efforts were NOD 26 3 1.6 institutionalised by introducing specific 97 40 48.7 objectives in the 6MP (1991-1995) as well as Pre-Commercialisation 365 2- the subsequent plans to ensure that public DAGS 70 60 508.3 R&D programmes are market-relevant with E-Content 18 -- commercial value. The commercialisation InnoFund 286 -- success in Malaysia could largely be MGS attributed to various grants such as the ICT 81 64 345.5 Commercialisation of R&D Fund (CRDF), TechnoFund 154 129 1211.7 Technology Acquisition Fund (TAF) and BCG. 30 21 294.1 Commercialisation To illustrate, the CRDF contributed the BCG 4404 331 2420.0 highest sales revenue which amounted to CRDF RM1.2 billion, with more than 5.4% of TAF returns from the total amount of CRDF disbursed (RM0.22 billion) (Table 2-3). Rate Total of commercialisation was at 82% with a success rate of 22% (success here being Source: MOSTI 2014 defined as projects achieving / exceeding their forecasted sales). In addition, CRDF projects also attracted RM418 million in private sector investments4 and this trend has increased throughout the 9MP period. The question now is whether the funds were channelled to commercialise the indigenous R&D efforts in Malaysian laboratories? 4 Private sector investment here refers to investments made by the respective companies’ post-commercialisation.60

Commercialisation success rates had been In 2008, although USM’s Institute for While R,D&C Continues to Be Pivotal(traditionally) higher when the grant Research in Molecular Medicine (USAINS)6 in Meeting the STI Objectives, areparticipants were independent firms as generated RM2.8 million in sales of IP There Any Gaps Which Can Beopposed to universities, who face consultancy, the overall commercialisation Converted into Opportunities?challenges in commercialising their products rate is low or limited among universities andand technologies5. For instance, in the past GRIs (Chandran 2010). However, universities Malaysia has relatively low R&D investmentsone decade, the success of the Malaysian which specialise in specific fields or sectors (RM10.6 billion or 1.13% GERD/GDP in 2012)Palm Oil Board (MPOB) is attributed, partly, have reported high commercialisation when compared to the average R&Dto the participation of the industry at earlier potential especially in the areas of medical spending of the G20 countries, which isstage of research activities. Funding is mainly and health, ICT, agriculture, industrial 2.04%. In Malaysia, the average R&Dthrough cess – a tax on revenues from the equipment and electronics (Figure 2-9). spending consists of 0.08% of GDP spent bysale of palm oil, which support the research governments, 0.73% of GDP invested by thestrategies of MPOB. The MPOB’s model has private sector and a further 0.32% of GDPbeen successful in terms of identifying the from other sources (Figure 2-10).synergies and establishing collaborationsthrough active engagement with the industry To illustrate, even a developed countryas well as the government. such as the UK spends 1.7% of their GDP on research. And, this is considered below average by most international measures, whereas South Korea is far ahead with 4.4% of their GDP. Conversely, in most countries, the private sector makes the larger contribution to R&D, but there are exceptions to the rule, for example Brazil and Argentina. Moving forward, there is an opportunity for Malaysia to seek private sector funding to support the nation’s R,D&C initiatives and programmes as evidenced by the data. It is also important to acknowledge that there is a direct correlation between R&D investment and commercialisation success rates.Figure 2-9. Fields of commercialisation by universitiesSource: MOHE 20115 Based on interviews6 USAINS is active in IP creation and product development; forming a viable working model on how theTechnology Transfer Office (TTO) should work. Established 15 years ago with the aim of revenue generation,USAINS today generates up to RM1 million in funding annually, supporting 30% of the university’s operations. 61

Figure 2-10. GDP invested in scientific research (%), 2012 Note: The vertical depth of the bars represents the countries’ GDP, a measure of total national economic output. The width of the bars represents the percentage of that GDP invested in research and development (R&D). That means that the area of each block is proportional to the overall spending on research. The graph is divided into spending by governments, private businesses and other sources. Sources: MASTIC 2014; OECD.StatExtracts 2014; Scienceogram 201362

However, in the existing scenario, there is also a mismatch between the number of researchers and the amount of funding(Figure 2-11), especially in the GRIs. This could also be a deterrent to the private sector funding meaningful research.Figure 2-11. R&D expenditure and researchers, 2011Note: Size of bubble reflects the relative size of R&D expenditure for 2011Source: NSRC 2013 63

In terms of R&D fund allocation, the burning Even in applied research, due to produce one successful industrial product question that warrants attention is whether diversification of R&D funding and that can be commercialised (Stevens & Malaysia should continue to place high allocation, the budgets are assigned to a Burley 1997). Hence, given this ratio, focus on applied research without the active greater number of research projects, leaving MOSTI’s current target of commercialising participation of industry alongside GRIs and little or no room to create enough pool or 60 products every year11, with approximately PRIs, unlike Taiwan and South Korea where economies of scale (masses) in specific 300-400 patents a year (Figure 2-7), seems they leverage on strong ties between sectors or fields of research. This poses a to be rather idealistic in it forecast target. industry, GRIs and PRIs. challenge to sustain the research while the grant recipients and applicants themselves Table 2-4. Commercialisation rate of Despite the fact that fundamental do not have access to comprehensive R&D from 6MP to 9MP research drives applied research, the information8. The management, majority of researchers are involved in administration and coordination of the Malaysia Plan Commercialisation Rate (%) applied research. This could be attributed funds are also believed to be an issue due to their poor understanding and low success to the involvement of multiple agencies 6MP & 7MP 5.1 rate (only 20%)7 of applications for in Malaysia. fundamental research in Malaysia, in 8MP 3.4 addition to the high amount of funding Typically in Malaysia, the progress of R&D channelled into applied research. However, is only monitored across a five-year cycle. 9MP 8.0 it is important to note that the MOE is Long-term research project continuity may currently driving fundamental research to not be a priority. In the 10MP (2011-2015), Source: Chandran 2010; MOSTI 2014 provide solutions for the industry in the R&D activities are treated as a rolling plan9, form of commercialisation of ideas and creating uncertainty among GRIs10. Research The 9MP also saw funding allocation technology. The Ministry has made RM1.25 activity planning in the early stages is specifically for ideation, R&D, pre billion from R&D product commercialisation hampered given the short-term treatment of -commercialisation and commercialisation, in the past five years (through five research R&D activities, and may not necessarily reach making it more comprehensive across all universities), exceeding their target of RM20 the commercialisation stage. levels of R&D. Nevertheless, there has been million by 2020. no seamless process to allow a research In the previous Malaysia Plans, fund project to move from one stage of funding 7 Based on interview with MOE allocations were streamlined as a response to another. Records show that only 2% of 8 Through interviews, it was observed that researchers to poor rates of commercialisation and the projects managed to move between and industry face difficulty in comprehending all the return on investment (Table 2-4). different stages1.2 There is also a significant existing schemes and grants. This also explains why the Commercialisation rate takes into account gap between the pre-commercialisation and take up rate for some of the incentives and grants is low. the number of projects that have commercialisation stages, as they are 9 R&D is treated as a 2-year plan. Funding for the 10MP successfully generated sales revenue over managed by different government entities. is a rolling plan (a plan that has a cycle of two years). the total number of projects for the 10Based on interviews with GRIs. respective Malaysia Plan. Less than 5% of What does not help the situation is the poor 11In the latest 2015 Budget, the Government has set public projects funded have been participation of the business sector, which a target for MOSTI to commercialise 360 high-impact commercialised (Thiruchelvam 2013). For otherwise can help strengthen the R&D innovative products within the next five years (The Gov- instance, in 2010, Malaysia’s public output due to its commercial intent and ernment of Malaysia 2014). universities commercialised 3.2% of R&D application. Malaysia’s business sector R&D 12Based on interviews with fund managers. grants given by the Government. In most expenditure per GDP was 0.7% in 2012, as industries, 3,000 raw ideas are needed to compared to Singapore (1.4%), Korea (3.1%)64 and Taiwan (2.3%) (Figure 2-12).

Besides, R&D investment in the manufacturing Table 2-5. R&D spending by manufacturing sectors in RM (‘000), 2011sector is more skewed towards specificindustries such as electronics and automotive Radio, Television and Communication Equipment 1,108.80(Table 2-5) and is mainly driven by foreign firms(Chandran et al. 2012). Such firms dominate in Office Accounting And Computing Machinery 292.94areas such as network and wireless technology,and sensors and server technology, compared Other Transport Equipment 130.31to local firms that primarily invest in palm oilR&D. GRIs in Malaysia tend to invest more in Machinery and Equipment n.e.c 115.56fields dominated by foreign firms. Rubber And Plastic Product 75.40 Food products and beverages 71.48 Chemicals and chemical products 38.93 Electrical machinery and apparatus n.e.c 32.31 Other non-metallic mineral 30.68 Motor vehicles, trailers and semi-trailers 30.40 Fabricated metal products 15.28 Coke, refined petroleum 15.25 Furniture; manufacturing n.e.c 13.25 Wood and wood based products 6.53 Basic metals 6.50 Publishing, printing and media 5.10 Medical, precision and optical instruments 4.24 Textile 3.90 Paper and paper based products 2.62 Wearing apparel 2.24 Tobacco products 1.12 Tanning and dressing of leather 0.32 Note: n.e.c. stands for not elsewhere classified Source: DOSM 2012Figure 2-12. Business expenditure on R&D (% of GDP), 2012 or the latest available yearSource: IMD World Competitiveness Online (IMD 2014a) 65

Way Forward: Measures to BuildCapacity and Establish the Socio-Economic Impact of Malaysian R,D&C1 industry set-up, role of solution-providers, universities, research institutions (public and interest of researchers and project managers private) and the industry can also be part ofEmpower Proposed Centralised for sustainable R&D, with socio- economic the scope.Body to Promote Seamless benefits.R,D&C Implementation, Fundamentally, we also need a standardisedManagement & Monitoring Such a body is also imperative for Malaysia definition and a common understanding ofEmpowering a body such as the National to establish local, regional and international various stages of R,D&C, to include pre-R&D,Science Research Council (NSRC) or an research networks to include industry R&D in the context of experimental, basicIndependent Research Consortium will players, world renowned research institutions and applied, pre-commercialisation andhelp oversee, manage and evaluate all and researchers to enhance capacity and commercialisation. This will help bridge theR,D&C budgets. Additionally, it will be capabilities to undertake more meaningful current gap in both prioritising andpossible to evaluate beyond the ROI by R,D&C initiatives. Mapping the R&D focus of implementation of R,D&C.integrating intellectual property (IP), ASM MOSTI MOSTI MOSTI Commercialisation of R&D by universities MOE MOE MITI MITI is also low due to lack of expertise in IHLs MOA MOE identifying integration of IP (IP bundling) GRIs MOH VCs MOE, etc. for commercialisation. Currently, there is MINDEF, etc no centre to coordinate IP bundling acrossPRE-R&D Industry COMMERCIALISATION institutions. A Technology Licensing Officer R&D (TLO) or TTO can help to strategise IPs EARLY STAGE to produce viable products for COMMERCIALISATION commercialisation.Ideation Value Analysis R&D ExPrpRoeetrsioetmayrepcneht Incubation MaturEearPPlrryooddGruuccottiiwtoonhn Concept Idea R&D Pilot Production Value Realisation Basic Applied Figure 2-13. Seamless R,D&C process66

2 Further ReadingsStrategise and Focus on Effective 2-1 pg. 143 Utilisation of GERD for CompetitivenessIn view of Malaysia’s ambitious GERD/GDP Challenges in commercialisation andtargets, Malaysia needs coordinated impact assessmentresearch prioritisation, capacity and strategyto ensure sustainable investments, steady 2-2 pg. 144 industry participation and cross-pollination /partnerships amongst various R,D&C Governance of R,D&Cinstitutions. 2-3 pg. 145 For better planning and targeted results,empowerment of existing organisation/s for Correlation analysis on the drivers ofcentralised funding mechanism or manage- publication and patent outputment is crucial. In addition, an introductionof a special purpose Ideation Fund mayhelp evidence-based decision making, whenchoosing the areas of R,D&C as well astowards efficient allocation of resources toachieve optimum capacity. Similarly, moreemphasis can be placed on basic researchthrough existing institutions such as AgensiInovasi Malaysia (AIM) and Malaysia Industry-Government Group for High Technology(MIGHT). 67

0

03 STI Talent

Science Outlook 2015

03 Do We Have Adequate Talent and This definition can be contextualised the Right Skill-Sets to Support and when we speak of the various indicatorsSTI Talent Sustain STI Development? of a developed economy – our vision as a country – such as talent development, R&D As the Prime Minister YAB Dato’ Sri Mohd and science and technology. Harnessing the Najib Tun Haji Abdul Razak highlighted, potential of our human capital and creating a “We cannot be on the road to a knowledge rich pool of STEM talent will also help meet intensive and innovation-led economy the rising demand for engineers, healthcare without talent to drive it.” Duly, talent is professionals, scientists, computational unconditional, and most fundamental not experts, actuaries, geologists and other only for the pursuit of STI targets, but to also similarly specialised personnel. Such talent sustain STI development and allow for an will fuel the priority or NKEA sectors efficiency-driven economy. identified by the government and positively contribute to fulfilling the ETP’s objectives. Thus, while the nation continuously strives to build a high calibre and highly productive Recognising the role of talent in meeting the human capital base, enhancing knowledge STI agenda, policy measures aimed at of STEM remains a priority. It is an established developing, harnessing and intensifying STI view that the role and contribution of STEM is talent in the country need to be adopted. critical in addressing various economic, social and environmental issues as a result of human Nevertheless, before we take stock of the endeavours in promoting business, trade and various initiatives and programmes that exist industry. under each phase of the Talent Lifecycle, there may be some merit in gaining a In examining the operational definition of historical perspective on STEM as part of talent (as stated below), the question is — Do Malaysia’s evolving education system. we have adequate talent and the right skills to support and sustain STI development? This will also help us understand better what it means to have a progressive educational “Human capital (or people) who are system, a system that does not necessarily able to use their scientific, technical, require continuously “changing” teaching conative (know-what, know-how and methodologies or course curricula, but know-when) and life-long learning rather one which gravitates more students learning skills to promote towards STEM, through early childhood understanding of science to society; orientation on STI and providing them with extend the boundaries of knowledge; opportunities to participate in the country’s provide pathways towards better, socio-economic development through more sustainable life; and enhance meaningful career development and the nation’s economic growth.” placements. (STI Talent Working Group) 71

Developing Talent Harnessing Talent Intensifying Talent This phase involves the development The Talent acquires scientific and /or This phase involves high-level of an ‘inquiring’ mind and interest in technical knowledge of science capital specialisation of science talent and development of expertise. Science science & technology among within five years of graduation and talent may become subject matter pre-schoolers, which continues and contribute towards building an experts with knowledge and skills that intensifies at the primary, secondary innovative society. and tertiary levels of formal education. are essential for increasing While some talent may have already productivity, efficiency and joined the workforce receiving competitiveness of Malaysia in additional training from their STI space. employers, a small percentage may be pursuing higher qualificationsFigure 3-1. Talent lifecycle: Operational definitions of developing, harnessing and intensifying talent72

Was Malaysia’s Early Education the 5MP, science was made a compulsory correlation between theoretical knowledgeSystem More Effective and Amenable subject from as early as Primary 1, beginning and practical applications; increase creativeto Developing Talent? in 1989. Prior to this, science was a thinking skills and higher order thinking mandatory subject only from Primary 4, skills; and develop an appreciation forFollowing Independence in 1957, the need although in the first three years of school, scientific working methods (Dikmenli 2009).for a trained workforce rose sharply for two students were introduced to scientific ideasreasons: Firstly, Malaysians had to assume via other subjects. However, with PEKA, the number of contactgreater responsibility over their nation’s hours for science subjects was reduced,administrative functions; and secondly, the Despite policy measures and targets, the laboratory classes were not madenew country needed sustainable science to non-science student ratio mandatory and the centralised practicaldevelopment with a focus on building a dropped from 31:69 in 1986 to 20:80 in 1993 SPM-level examinations were abolished.robust public infrastructure, primarily in (Table 3-1). However, in the following years, This led to low interest and poor attendancesectors such as healthcare and education. the ratio showed an encouraging rise – 29:71 in labs and negatively affected the 60:40The government emphasised the need to in 2001, 36:64 in 2004 and 41:59 in 2011. At target. Currently, only 20% of schools haveencourage and nurture home-grown the same time, the Government extended its science labs, many of which are poorlytalents by offering scholarships and grants scholarship programmes in the 1980s to equipped.to students opting for science subjects. applied sciences such as engineering,Public Service Department (Jabatan accountancy and architecture. Over the past decade, we have witnessedPerkhidmatan Awam or JPA) Scholarships, many corrective policy measures in thewhich are still offered today, successfully Table 3-1. Science to Non-science education system, but a game-changer wasattract significant student populations to students ratio the launch of the MEB13which expandedpursue STEM subjects. the teaching time allocation for science and Year Ratio mathematics and emphasised practicalThe year 1967 was a milestone in Malaysia’s application of knowledge through laboratoryhistory for it was when the Higher Education 1986 31 : 69 and project-based work. The MEB set out aPlanning Committee proposed a target ratio 1993 20 : 80 long-term strategic direction for STEMof 60:40 for science to arts students in order 2001 29 : 71 education, with the ultimate objective ofto meet demand. At the same time, more 2004 36 : 64 positively influencing the quality of ourlocal public universities were also established 2011 44 : 56 talent.with specialisations in S&T related fields. Itwas not until the year 1986, when the target Source: MOE 2012 Various programmes are currently beingratio was formalised under a policy and implemented to develop a talent pool,action plan focusing on the development of In 1999, another significant change was beginning with the Early Childhood CareSTEM. Following the launch of the NSTP and introduced to enhance the effectiveness of and Education Policy to meet the diverse teaching and learning science through the needs of the crucial early years of newborns13MEB was developed after considering views and Assessments of Science Process Skills until the age of six. Enrolment in 2009 stoodrecommendations from education experts from (Penilaian Kemahiran Amali or PEKA). at 67% for children aged 4+ and 5+, andUNESCO, the World Bank, OECD, six local universities, The initiative was premised on the today stands at about 77% (MOE 2012).principals, teachers, parents, students and other understanding that practical science Under the ETP, the government has targetedmembers of the public from every state in Malaysia. classes strengthen theoretical knowledge; a 97% enrolment by 2020. allow students to develop psycho-motor skills and the dexterity to use tools and 73 equipment; help establish a strong

The private sector is also contributing to the University, which offers undergraduate and How is Malaysia Positioned Today STEM ecosystem by way of an established post-graduate programmes in engineering, with its STI Talent Pool? private education system, which today ICT, business and multimedia, while its includes 6,798 pre-schools, 67 primary Multimedia College offers more vocational Despite such infrastructural and talent schools, 76 secondary schools, 22 programmes in multimedia, mobile and enhancement support from the private universities, 30 college universities and 324 wireless communication, business computing sector, the decision to opt for STEM-related colleges. The new league of private schools and computer science. Petroliam Nasional careers is influenced by low levels of and universities – adopting British, American Berhad (PETRONAS) too, has set up awareness of the demand for specialised or Australian curricula and boasting sizable Universiti Teknologi Petronas in 1997 to talent, attractive remuneration packages foreign student populations from countries provide industry relevant engineering and and prospects for dynamic career paths. As such as Japan, Korea, China, the technology programmes at undergraduate Malaysia advances closer to 2020, a natural Middle-East, Indonesia and Africa – is and post-graduate levels. trend would be increasing job prospects with growing to ground to exposing Malaysian high-income opportunities in sectors that students to cross-cultural influences, broader In 2011, the MOE introduced Technical and have traditionally relied on STEM talent as horizons of knowledge and a competitive Vocational Education and Training (TVET), well as in emerging and high-growth areas environment. Thanks to the dynamic with the objective of nurturing a competent such as biotechnology, nanotechnology and teaching and learning milieu made possible and skilled technical workforce to manage, environment-related fields. Similar trends by the private education system, an operate What is interesting in Malaysia is have been reported by developed nations. opportunity has emerged for students as that a national dual training system has been well as teachers (with diverse socio-cultural incorporated into the existing vocational According to the US Department of backgrounds) to develop their cognitive, education. In the two-year apprenticeship Commerce, not only are STEM occupations analytical, creative and innovative skills programme, students spend 70-80% of their in the country growing faster (at 17%) than through interaction and the exchange of time in the workplace, gaining hands-on others (at 9.8%), but professionals in related views, ideas and knowledge. experience and skills, and the remaining fields are earning more (Science Pioneers 20-30% of the time in selected training 2014). Likewise, in the UK, average salaries What is most encouraging is that the private institutions. It is expected that graduates for graduates in science occupations are centres of higher education have boosted with on-the-job exposure will be able to higher than that of those in non-science higher education enrolments, which apply their skills immediately in the labour occupations (Sjoberg & Schreiner 2005). increased to 30% among the 18-24 age market and contribute towards product Therefore, there is a need to communicate group during the 8MP. Likewise, the number modernisation and innovation (OECD 2013). the demand for science professionals as well of students enrolled in science and technical as the financially rewarding STEM careers subjects at both the undergraduate and Looking back at the transformational journey to the population at large. The UK has, for graduate level more than doubled (OECD of Malaysia’s education system in the example, launched an integrated 2013). Some GLCs have set up tertiary context of promoting STEM and building STI communications campaign to inspire institutions of learning to train personnel in talent, can we today claim to have the right students to take up science and mathematics specialised disciplines to sustain the talent formula or policy frameworks that will assure through career case studies on popular pool in their respective industries. For adequate talent and skill sets to meet our national youth radio stations, youth websites instance, Tenaga Nasional Berhad (TNB) has country’s current and future aspirations as an and in youth magazines. The campaign also UNITEN, which not only offers diplomas and innovation-led economy? Are our talents well reaches out to parents, teachers and career Bachelor’s degrees in engineering, but also placed in the industry to assume leadership professionals to encourage and advise in finance, IT and computer science. Telekom and entrepreneurial roles which will students to pursue science and mathematics Malaysia (TM) has also set up the Multimedia contribute to further development of STI? as their post-16 options (International Gas Union 2012).74

Against such a positive backdrop, with 20,000 Scientistsproactive measures and programmes inplace from both private and public sectors, RESEARCHwhat is impeding the performance andgrowth of the Malaysian STI talent pool? Engineers / 500,000 TechnologistsDoes Malaysia Have a Pipeline of SUPPORTSTEM Talent and Will it Be Sufficient IMPLEMENTORS Scientists / SERVICESand Competitive Enough to Meet Technologiststhe Country’s Future Human Capital 480,000 Applied Scientists 75Needs? Engineers /STEM talent in the country is harnessed and Doctorsfurther intensified by encouragingundergraduates to pursue postgraduate Architects / ICTstudies; acquire new STEM knowledgethrough extensive R&D, and hopefully join 1 millionthe workforce in one of the identified prioritysectors that thrive on innovation and Figure 3-2. S&T human capital quantitative distributions by 2020creativity. ASM’s study on the impact of Source: Academy of Sciences Malaysia 2012technology upskilling on industry andeconomic growth in Malaysia show thatimprovement in technology efficiency amongskilled workers, particularly, in the threesectors of the economy (financial, business,education and public services; transportationand communication; and heavymanufacturing) would have substantialpositive impacts to the country in terms ofwelfare gain, GDP and trade balances(Further Reading 3-1).In spite of the substantial expenditure oneducation, there is a shortage of skilledlabour in Malaysia. Labour force participationrates by education level show that themajority of workers only have at most, asecondary school education. In 2010,unskilled workers represented more than75% of total workers employed; those withtertiary education and applicable skills madeup only a quarter of the workforce.

Only 28% of Malaysian skilled jobs are in the may be due to factors such as the perception Despite conscious efforts to promote the higher skilled bracket. Shortages in critical of unattractive career prospects in certain study of S&T, only 29% of students entering professions such as engineers, scientists and fields and industries, the lack of quality Form 4 opt to study science, and only 40% R&D personnel are indeed limiting the education offerings, unattractive STEM of those entering tertiary education opt for evolution of current industries (OECD 2013). scholarships, etc (Table 3-2). science and related programmes, including technical and vocational programmes. These A national study, S&T Human Capital: A Table 3-2. Operational issues at tertiary figures fall very short of the government’s Strategic Planning Towards 2020 (2012) education level 60:40 target for students in S&T to those in confirms that Malaysia needs at least one the arts field. Furthermore, only 20% of million S&T human capital by 2020, based Issue Description students who enrol in tertiary education on a 6% annual economic growth and the were found to actually graduate. This raises emergence of EPPs (Entry Point Projects) Quality • Low quality of matriculation / serious problems for the Government’s under the NKEAs as well as the emergence target of producing 48,000 PhD holders by of new technology-driven sectors such as foundation students. 2020 and 60,000 by 2023 under the MyBrain biotechnology, nanotechnology and 15 initiative from fewer than 4,000 PhD advanced manufacturing (Figure 3-2). Of • Matriculation/ foundation holders in 2008, over half of whom were this number 500,000 must have at least a partly educated outside the country (OECD diploma or university degree while the rest certificate not recognised. 2013). are to have completed a technical or vocational programme aimed at providing Student’s highest qualification is Compounding to the situation is the exodus support services. At the same time, as a of talent. To quote the National Economic scientifically-driven developed nation, the therefore, the SPM certificate. Advisory Council (NEAC 2010), “Not only is ratio of researchers per 10,000 workers which our education system failing to deliver the currently stands at 58.2, which needs to be Incentive • Unattractive scholarships in required talent, we have not been able to increased to 70 by 2020. retain local talent of all races or attract pursuing science at the foreign ones due to poor prospects and a Skilled STEM jobs have commanded about lack of high-skilled jobs.” So, can intensifying 15% of total employment opportunities in tertiary level. STI’s brain gain and brain circulation help the country over the past 10 years, from fill the talent vacuum created by the brain 2001-2011. Of the skilled STEM personnel, • Insufficient numbers of PhD drain? about 20% are needed in the capacity of researchers. At the current rate of student holders to conduct research. Malaysia’s brain drain is quite intense, enrolment in STEM studies – both at the relative to a narrow skill base (World Bank higher secondary and tertiary levels – the PhD • PhD holders do not pursue 2013). In 2000, one in ten Malaysians with a country will not have sufficient skilled tertiary degree migrated to an OECD personnel to drive the envisaged post-docs, hence inexperienced country – that is twice the world average. knowledge-driven, value-added economy. It further suggests that the shrinking human in leading/ supervising research. capital base or the lower skill base may also Owing to the poor performance in S&T at have an important spillover effect on the school level, the number of students • Post-doc not considered an productivity growth, as innovation – one opting to study science at the upper of the key driving factors of sustained secondary and tertiary levels is also low. This important requirement. productivity improvement – rests on a solid76 Programme / • There are 15 institutions of Organisation higher learning (IHLs) (4 public and 11 private) that offer medicine and engineering but lack a science faculty. Thus, the issue here is a weak foundation. Source: Academy of Sciences Malaysia 2012

base of human capital. Talent retention, Are There Any Fundamental Aspects Mathematics and Science Study (TIMMS) andno doubt, needs a sustained exercise to Negatively Affecting STEM Enrolment Programme for International Studentposition the right opportunities, as well as and Performance? Assessment (PISA) have deteriorated ascreating a rewarding professional compared to other regional countries suchenvironment for Malaysian talent to grow The current enrolment ratio for science to as Vietnam (Further Reading 3-3). Vietnamand contribute within the country. arts students is low when compared to the was a star performer in the 2012 PISA, targeted ratio of 60:40. Similarly, over the scoring higher than the OECD average in allRecognising various challenges, Talent last decade, while accessibility to three components of science, mathematicsCorporation Malaysia Berhad (TalentCorp) pre-primary, primary and secondary and english. The World Bank’s 2013 Reportwas established in 2011 to attract skilled education has increased by approximately highlighted some changes made to theMalaysians residing abroad to fill the 20%, STEM enrolment at the tertiary level education system in that country, whichcountry’s growing deficits in skilled has remained stagnant (UNESCO Institute suggests some proven practices thatmanpower (Further Reading 3-2). for Statistics Database 2009). The low ratio Malaysia can adopt (Further Reading 3-4).Competitive and attractive incentives as indicates that the supply of human resourceswell as job benefits to enhance and boost was not inclined towards S&T despite the Hence, to explore the possible reasons forlocal STI talents in all sectors are long introduction of appropriate policy Malaysia’s poor STEM orientation andoverdue. But for Malaysians considering programmes since 1967 (Table 3-3). average performance, we may have to lookreturning to Malaysia, social and governance at the country’s education system as a whole.issues such as affirmative action, government In addition, Malaysia’s performance and Some of the key areas of concern could beeffectiveness and education quality are taken scores reported in Trends in International highlighted as follows:into account when making theirdecision. Other primary considerations Table 3-3. Existing ratio and production rate of S&T human capital versus targetinclude meritocracy, inclusiveness,corruption, career advancement and livingconditions (The World Bank 2013).In the current scenario, what deserves a 2012 2020mention is the establishment of the Instituteof Labour Market Information and Analysis Level Ratio Production Rate Ratio Production Rate(ILMIA) under the Ministry of Human (Quantity/ yr) (Quantity/ yr) Resources (MOHR), in the 10MP. Among itsobjectives is to ensure the country’s youth Science Student inare guided to pursue appropriate upper Secondary school 30% 135,000 70:100 315,000secondary and tertiary academic and skilltraining programmes to ensure the country Science Student inmeets its target of having a 50% high-skilled Tertiary education 40% 40,000 70:100 70,000workforce by 2020, from about 28% currently. Sources: Academy of Sciences Malaysia 2012; MOSTI 2013 77

An absolute must to make science Another view is that ad-hoc changes in The Bar for Teaching Talent Must “exciting” for potential talent! There exists policies affect student outcomes and, as a Be Raised for Effective Science a point of view that science as a subject may result, their interest levels. When the Education not appeal or inspire the general student language of instruction for science and population, leading to a low take-up rate. mathematics in schools was changed from Much of the responsibility for quality science The others opt for arts, technical, vocational Bahasa Malaysia to English in 2003, the education rests on teachers and the teaching or MLKV streams; with arts subjects being performance of Malaysian students in these profession. “One must ensure teachers of predominant. Only 21% of secondary schools two subjects dropped in both the TIMSS science of the highest quality are provided nationwide attained the 60:40 of science to assessment as well as in the local Primary for students in primary and lower secondary arts policy. School Achievement Test (Ujian Penilaian schools. This is critical as attitudes toward Sekolah Rendah or UPSR) examination. In science-based careers are formed in schools One possible explanation is ineffective view of this, in 2009, the government during the years when individual personality teaching methodology. Malaysia, like China, announced that the teaching of science and formation occurs. This is a time of intense adopts a theoretical approach to the mathematics in English would be phased self-reflection for young people and such teaching of science, which is textbook-based out in stages, and starting in 2012, Bahasa attitudes are formed both consciously and and examination-oriented. In an Advisory Malaysia would be the medium of instruction subliminally. While family, peers and broad Report on the “Teaching and Learning of once again. societal influences and values will always Science and Mathematics in Schools”, it was predominate, the curriculum mediated by found that the teaching and learning process These factors at the primary and secondary teachers is the decisive factor in attracting did not contribute to the development school level may be dissuading the STEM interest in science and mathematics” of higher order thinking skills or critical talent pipeline to continue at the tertiary (International Gas Union 2012). and analytical thinking skills, thus failing to level and beyond. It is worth noting that inculcate science process and manipulative the decline in interest in science is a global In Malaysia, the number of teachers skills (ASM 2010). This could also mean an phenomenon but various countries have employed at the primary and secondary level absence of interaction outside of the implemented action plans to curb the trend has been increasing over the years. However, classroom, with no practical value or and promote interest in STEM subjects the ratio of science and mathematics application of the theory taught. generally. For instance, the USA National teachers to students, at 1:17, is still less than Academies’ Committee on Science, half the international average of 1:8. In countries that perform better in TIMSS Engineering and Public Policy (COSEPUP) Whether or not a better ratio will improve and PISA, the teaching is based either on an identified 10 actions that policymakers could effectiveness is an important consideration. inquiry approach (e.g. Canada) or a take to enhance their S&T enterprise. These combination of inquiry and practical were presented in an extensive report, Questions have also been raised as to the approaches (e.g. Australia), which involves published in 2007, called Rising Above the qualification of our science teachers, and more questioning and discussion (inquiry) as Gathering Storm: Energizing and if they are sufficiently equipped with the well as demonstrations and experimental Employing America for a Brighter Economic required knowledge and orientation for investigations in real environments or Future. In the UK, a report by the Royal effective subject delivery. Approximately industry (practical) (Further Reading 3-5). For Society, Vision for Science and Mathematics 41% of science teachers in the country do inquiry or practical approaches, it has been Education released in 2014, made a number not possess a Bachelor’s degree, with 37.1% argued; teachers must have the knowledge, of recommendations towards reshaping the holding only SPM/STPM qualifications and interest and motivation to impart scientific educational system to support the country’s 3.8% holding diplomas. Additionally, a high knowledge with passion. leadership in science and engineering. number of teachers holding Bachelor of Education did not have the prerequisites to78

enter the degree programme. The According to a 2013 survey by Deloitte The Burning Question is, are Werequirement for the programme is to have Consulting Malaysia, there is potential for Talent-ready for 2020?at least three distinctions for SPM. However, greater industry-academia and private-public70% of those offered a place in the collaboration to manage issues relating to In meeting the target of 500,000 skilledprogramme fall short of this requirement. workforce shortage. 60% of the organisations STEM personnel by 2020, we would requireOnly 3% of the offers went to applicants admitted to not working closely with a sufficient amount to not fall short of figuresconsidered as high-performers (World Bank learning institutions to improve the quality as compared to other developed nations.2013). This is in stark contrast with countries and quantity of manpower supply while an In most advanced countries, skilled STEMsuch as South Korea, Taiwan and Finland, even greater 68% stated that they do not workers make up about 30% of thewhere student outcomes are among the work closely with government agencies/ totalworkforce. In Malaysia, the targetedhighest in the world in TIMSS and PISA. bodies to enhance the attraction of 500,000 skilled STEM workers would only identified critical jobs to the industry. comprise 3% of our expected total workforceTap Lateral Opportunities to Build a of 15 million in 2020 (Table 3-4).Technical Talent Pool for the Industry Countries that establish closer link between industry and academia have experienced There are too many gaps along the entireThere are lateral opportunities that can better results in terms of graduate STEM talent chain, from the secondarybe tapped to enhance the skills and employment rate. In Taiwan, from 2006 to school level to the R&D level, to meet thecompetencies of the technical workforce, 2011, employees in STEM related industries requirements of 2020. According to thenamely vocational and technical training took up more than half of the total study, not enough students are opting forprogrammes introduced by both private employment. The link between industry science streams at the upper secondary leveland public sector players. However, such and STEM development in the country is and even fewer are choosing to pursueprogrammes are perceived as lacking very high, with industry funding no less than STEM studies at the tertiary level (both at‘credentials’ or the same ‘credibility’ as 72.5% of the total GERD in 2011. Its industry universities and technical colleges). Theuniversity qualifications. As a result, the also has strong links with universities and numbers continue to dwindle at the Master’stake-up rate by secondary school leavers technical colleges in Taiwan, with some and PhD levels. To meet our 2020 STEMand potential technicians are rather low. For universities providing training to personnel needs, it is estimated that we need a 0.2%instance, statistics show that only 10% of in companies that have STEM-related increase per annum in the number of STEMstudents enrol in technical and vocational businesses. Moreover, thanks to a better diploma holders; 10-40% increase per annumeducation as compared to over 18% in understanding of industrial requirements, in STEM degree holders; and 5-10% increaseengineering, the latter whom are generally universities are adapting their programmes per annum in PhD holders.not trained in the maintenance of highly to be more relevant to the workspace. Forcomplex scientific instruments and example, recognising that industry todaymachinery. Such a poor response may prefers to employ engineering students withsignificantly influence Malaysia’s aspiration interdisciplinary knowledge, universities areto increase its pool of engineers and promoting a more interdisciplinarytechnical personnel, and shift its focus from curriculum with programmes such as ICassembly in the manufacturing sector design and manufacturing, electronictowards higher-valued, front-end aspects packaging and energy and resources.such as design (OECD 2013). 79

The number of STEM faculty members at the define indicators that could measure suchIHLs as well as researchers at PRIs also needs quality through employability rate,to increase. Government-backed IHLs and entrepreneurship, standards of universitiesPRIs need an estimated 23,000 RSEs by and faculty etc. To summarise, there will be2020. Based on the current rate of entry for a significant gap in the country’s STEM talentfaculty members, there will be a shortage pool by 2020. Without careful and integratedof 18,777 faculty members in 2020. As such, planning, the country will lack the criticalthe quality of STI talent or science graduates human resources and skills required to takemust not be overlooked in trying to build it forward to 2020 (Further Reading 3-6).or meet the numbers. There is a need toTable 3-4. Talent Juxtaposition of Current and Targeted Cohort Size Way Forward: Developing, Harnessing and Intensifying TalentCohort 2012 2020 Advanced Countries 1 (Current) (Projection) Systematic Planning andTotal 13 million 15 million Development for STI TalentWorkforce (WF) The Human Capital Roadmap for Science and Technology 2012 – 2020 (HCRST)Skilled WF 29% 3.48 million 40% 6 million (Further Reading 3-7) has already been strategised and documented, which (EPU & includes: PEMANDU Projection, a) A strategic framework that will guide 2013) human capital development in S&T services and delivery decisions in line with the NEM of Malaysia;STEM WF 1% 120K 6.7% 1 million b) S&T human capital goals and priorities, the determination of measurable successHighly skilled 0.7% 85K 3% 500K 30% factors, and the identification of concreteSTEM WF (MPKSN (Average) outcomes that will drive the development Projection, of an actionable roadmap; 1999) c) A review of the current status of people, processes, technology and culture to determine their current state and opportunities for measurable andRSEs 58 : 10,000 WF 70 : 10,000 WF business-aligned outcomes; and (69K RSEs) (105K RSEs) d) The delivery of prioritisedSource: MOSTI 2012; MOSTI 2013; MASTIC 2014b recommendations and an outlined action plan that forms the basis of a multi-year roadmap and plan that will drive measurable results.80

2 3 Further ReadingsBridge the Gap between Policy Strategise on Retaining STI Talent 3-1 pg. 146 and Reality Through various policy measures andThrough a process of indepth review and incentives, there is a need to devise a The impact of technical / technologyanalysis, there is a need to bridge the gap ‘sustainable’ action plan for retaining STI upskilling on industry and economicbetween policy and reality. Drastic talent, especially to fuel the high-priority growth in Malaysiaintervention measures need to be taken sectors of the economy. Such a plan couldat each domain of the human capital value outline methodologies and criterion to 3-2 pg. 153 chain in order to reach the targeted number identify the right talent, with the right skillsof 500,000 skilled S&T workforce. and expertise, who can be incentivised with The phenomenon of brain drain and a career roadmap in the country, with the role of TalentCorp opportunities created through public private partnerships. 3-3 pg. 154 Is the poor performance on various rankings and scores instrumental is dissuading public away from STEM and related subjects? 3-4 pg. 154 The Vietnamese experience 3-5 pg. 155 Approaches implemented in STEM teaching 3-6 pg. 156 Critical skill shortage, 2002 and 2007 3-7 pg. 157 Human Capital Roadmap for Science and Technology 2012-2020 81

0

04 Energising Industries

Science Outlook 2015

04 Is the Industry Prepared to One of the most interesting measures Collaborate or Act Independently is also to encourage social-, grassroots-Energising Industries to Tap into the STI Potential? and prosumer-driven innovation. This is possible by taking an inclusive approach It has been said that there exists limitless towards the adoption and implementation opportunities in every industry. Where there of innovation as both a tool to engage with is an open mind, there will always be a and understand consumers and a solution frontier. In the context of Malaysian industry, for gaining a competitive edge in the the frontier has always been the immense global marketplace. potential and opportunities for growth in areas that will help position the country as a In driving such policy measures, the progressive nation, with the right orientation government recognises the need to to emerge as a developed nation by 2020. establish some clarity in defining innovation, STI is one of the high priority areas with which goes beyond R&D initiatives or high defined parameters of growth in various technology or patents. As the Malaysian policy frameworks14. Prime Minister (2014) once put it, “It is counter intuitive for us as a nation to The NPSTI highlights the need for energising associate innovation with and restrict it industries to foster new economic growth, to just technology and R&D. Innovation primarily through increased private sector is about turning a new idea into something investments and commitment to the agenda profitable or something that creates new of STI. The direction is distinctive and in value.” The Government continues to line with the national aspiration of creating drive home the thought that a broader a high-income economy led by innovation. perspective on innovation is critical for Towards this end, the focus remains on industry players, in order for them to enhancing the understanding, capability and examine how their businesses can embody capacity of industry for innovation. NPSTI has ‘innovation’ in their processes, modules and identified and defined 10 policy measures practices for greater productivity, capacity, to energise the industries and stimulate new pricing and competitiveness. As an idea and growth powered by STI in various forms. a concept, this is more appealing to the These include reducing the dependence industry at large and fits their rationale of of the industry players on the Government what can be termed as “business sense”. for R&D by maintaining a minimum R&D expenditure ratio between the private and Acknowledging this fact, the government public sector; enhancing industry-driven through its innovation arm Agensi Inovasi collaborations and developing enterprises Malaysia (AIM), launched the National with distinctive capabilities in STI. Corporate Innovation Index (NCII). The NCII, with active input and participation from 14The National Innovation System; NSTP, NSTP2, NPSTI various industry giants, aims at developing a comprehensive, well-reasoned view of innovation investment and returns, educate the private sector community and encourage 85

their innovation endeavours. Such initiatives Perception Audit (2014)15found that Traditionally, the business enterprises werereinforce the Government’s commitment to industry (also including Small and Medium the largest contributor to R&D activities inpromote the STI Agenda to the community Enterprises (SMEs) preparedness in Malaysia for 12 years – from 2000 to 2012.of high-potential industries and energise adopting technological innovation is evident The business sector contributed 64.5% ofthem to meet or derive specific national in their willingness to allocate funds and R&D expenditure in Malaysia, in 2012, whiledevelopment objectives. undertake research, in addition to GRIs and IHLs contributed 6.9% and 28.7% establishing external collaborations with respectively (Figure 4-1). Although this is aWhat are Some of the Positive universities and research institutes. 77% of positive trend, there is still potential for moreDevelopments towards Energising small-size companies spend RM100,000 or work to be done considering the fact thatIndustries Through the Set Policy lower a year for innovation (MyTIC 2012). the business sector takes up 92% of the totalMeasures? 47.6% of the surveyed industry players industry size (when measured in terms of highlighted their firms’ capacity to innovate GDP contribution) in Malaysia. As aOne of the key determinants towards driving and produce new technologies, whereas benchmark, Thailand aims at increasingor enhancing innovation is to stimulate the 19.1% of them outsource the use of the proportion of its business expenditure‘risk’ appetite of the industry or technology and 9.5% acquire technology on R&D to 70% of total spending by 2016entrepreneurs for greater investments in in turnkey form due to their incapability to (National Science Technology and InnovationR&D and the corresponding make any adaptations (Further Reading 4-1). Policy Office). To seek greater involvementcommercialisation. Although OECD in (2013) The industry is receptive to research that of the industry, there may be merit instated that only 5.5% of firms actively provides direct solutions to their business understanding what really motivates theparticipate in R&D, mainly multinational and promises ROI, rather than supporting business sector or the industry players incorporations (MNCs), ASM Industry the knowledge-advancement and human general to significantly invest in R&D or STI capital development objectives of R&D. initiatives. Figure 4-1. Share of R&D expenditure by sector, 2008 – 2012 Source: MASTIC 2014b 15Industry Perception Audit 2014, conducted for the purpose of Science Outlook Study and documented in the Conduct of the Study section86

One of the primary motivating factors is For instance, the central coordination agency Another motivating factor for the industryavailability of funds or access to public funds for all SME development in the country – is the opportunity to and benefit of,for R&D. According to the Economic Report SME Corp. Malaysia – and AIM jointly co-creating STI programmes and activities2013/2014, the Malaysian Government is implement High Impact Programmes (HIPs)18 in strategic collaboration with industrycommitted to supporting the planning and on the Technology Commercialisation associations, GRIs and IHLs, with the optionimplementation of programmes and Platform to assist SMEs from the to share all intellectual property derived fromactivities that are focused on enhancing development of “Proof of Concept” to the partnership.creativity and innovation. To illustrate, in the commercialisation stage. Similarly,2013, the Government allocated RM600 initiatives such as the Venture Capital While clients, suppliers and competitorsmillion to five research universities to Programme are also popular in the country, were industry’s main sources of informationconduct high-impact research in fields such with 57 venture capital management for innovative activities in 2008, there is anas nanotechnology, automotive technology, companies registered in Malaysia as of increasing acceptance of universities as abiotechnology and aerospace. The August 2013 (MOF 2014). Such programmes primary source of innovation informationGovernment also funds research projects help the industry players benefit or create (Figure 4-2). It would be interesting toof national relevance and impact through value through accelerated development of examine whether this upward trendvarious grants16and initiatives such as the products and services which make use of intensified after the formation of the researchNation’s Incubator Programme – aimed at creative deployment of technology or universities in 2008.promoting incubator activities in priority innovative solutions.industries as per the defined NKEAs underthe ETP. Funds are also channelled throughvarious Government agencies as well asNGOs17that support the implementation ofthe innovation agenda.16 ScienceFund, TechnoFund, InnoFund by MOSTI; Figure 4-2. Innovation information sourcesProduct Development & Commercialisation Fund; Sources: MASTIC 2001; MASTIC 2003; MASTIC 2011Intellectual Property Financing Scheme.17Agensi Inovasi Malaysia (AIM); Yayasan InovasiMalaysia (YIM); Intellectual Property Corporation ofMalaysia (MyIPO); Malaysian Association of Creativity& Innovation (MACRI); Malaysian Green TechnologyCorporation (MGTC); Malaysian TechnologyDevelopment Corporation (MTDC); MyNIC Berhad;National Strategic Unit (NSU)MOF amongst others.18There are 32 initiatives including the six HIPs definedunder the SME Masterplan (2013-2020), with anallocation of RM30 million. 87

Many systematic collaboration models In the same league, Malaysian Global Another factor for the industry is the continue to thrive in Malaysia, forging Innovation and Creativity Centre (MaGIC, opportunity to and benefit of, co-creating strategic linkages between industry, launched in 2013) is also on its way to STI programmes and activities in strategic academia and government as well as demonstrate the value of industry-university collaboration with industry associations, GRIs between the public, industry and academia. collaboration in creating a new wave of and IHLs, with the option to share all One side effect of these relationships is that entrepreneurial activities in Malaysia, while intellectual property derived from the they positively promote various STI and catering to the special needs of local partnership. related programmes. A classic example is start-up companies and initiatives. that of the Malaysian Technology In June 2013, the Fiscal Policy Committee Development Corporation (MTDC), which Other collaborative models that encourage (FPC) was established by Bank Negara was established in 1992 and evolved in its multiple stakeholders (industry, SMEs, Malaysia (BNM – the Central Bank) to serve role to create an effective ecosystem for Government, public, youth, academia, as the central policy-making committee for commercialisation of home-grown associations and NGOs) towards the formulation and implementation of fiscal technologies through the facilitation of meaningful interaction, exchange of ideas strategies, with due consideration to their effective partnerships. and resources, and pragmatic STI solutions impact on the overall macro-economy. BNM for deployment, are also present, and are led prioritises high-impact investment projects, Another promising initiative was the by various purpose-driven apex bodies and mainly led in collaboration with the private Collaborative Research in Engineering, institutions. sector such as the broadband infrastructure Science & Technology (CREST) in 2012, and development of regional economic which has been entrusted with the role of an Even in building and sustaining corridors. Incentives are also provided to industry catalyst to devise new strategies collaborations, industries are further help enhance the productivity of SMEs or accelerate economic growth for the motivated by various fiscal and financial towards local, regional and global business Electrical and Electronics (E&E) industry in incentives for spearheading innovation and competitiveness. Malaysia. The E&E sector currently related activities. Under the current policy contributes RM37 billion in Gross National framework, the Government aims at SME Corp. Malaysia and other industry Income (GNI), provides 522,000 jobs and is developing new approaches through bodies such as the Malaysian Industry expected to contribute RM90 billion in GNI various industrial policies that include Development Authority (MIDA) also offer and create 679,000 jobs by 2020. incentives for enhancing STI knowledge grants and funds to spur new growth for the transfer and capability development. SME community pursuing technological and The role of CREST rests on the need to drive Currently, Malaysian SMEs benefit from a innovative endeavours. The focus is more collaborations between industry, academia host of tax exemptions and breaks, towards providing solutions such as and government organisations in three key especially the high technology or emerging improved access to finance, advisory areas – R&D, talent development and technology companies involved in services, marketing, technology and ICT commercialisation. The potential promotion of exports, strategic knowledge- awareness and orientation, thereby opportunities created through such intensive activities, commercialisation of improving SME capability and developing partnerships go beyond mere numbers R&D findings, specialised machinery and them into better and more profitable and monetary value. To date, there are a 11 equipment, communications, utilities and businesses. MNCs, 22 local companies and 13 transportation, green technology sectors, universities working on 59 projects, etc. (National SME Development Council There are many lessons that can be learnt collectively valued at RM45.6 million. 2012; The Economic Planning Unit 2010). from other countries such as China, India, Japan and Korea, which illustrate contrasting88 development strategies. For example, China

has a more traditional, labour intensive focus, considering the encouraging industry data as well as the qualitative auditexport strategy, whereas India adopts a new developments in low carbon economy, conducted, the following key observationsknowledge intensive service export strategy. green technology and renewable energy. were noted that effective implementation ofIndustrial policy and infant industry protec For example, the ETP Annual Report 2012 the targets set out by the current NPSTI istion have been important in the indicated a target of manufacturing 2,000 negatively affected by poor orientation ofdevelopment of both China and India, and electric buses and 100,000 electric cars by the industry players towards STI. This is dueit can be argued that they would not be the 2020. Towards this, one of the initiatives to the lack of information as well as minimalstrong global players they are today if they implemented under the EPP includes the industry involvement in the process ofhad not had various industrial policy setting-up of local lithium ion (Li-Ion) battery strategising national STI policies andinterventions (Further Reading 4–2). While manufacturers given that the battery frameworks. The issue about industrysome of these policy-level interventions can accounts for 40 to 60 per cent of the electric awareness is largely due to an absencebe reviewed for adoption in Malaysia, it must car’s costs. The ultimate objective through of a formalised, sustainable “STIbe noted that industry awareness needs to this initiative is to help Malaysia emerge as Stakeholder Engagement Model”.be raised on the existing financial and fiscal a manufacturing and export hub for electricincentives, especially for STI-driven cars in the Association of Southeast Asian All the companies interviewed by ASMcompanies and entrepreneurs. Nations (ASEAN). highlighted the fact that the industry does not have enough opportunities forOutside of the incentive-motivated industry When creating or building ecosystems for conversations and engagement on STI.environment, there also exist local industries such industries in the future, there is a need Limited exposure to global developmentswith distinctive capabilities that need to be to take a balanced approach, with equal leaves industry players lacking therecognised for tapping greater STI potential. focus on both downstream and upstream, knowledge for them to understand, let aloneFor instance, according to MIDA (2014), which would mean enhancing R&D and embrace, the value of STI. This could be oneefforts are on to map the value chain and creating a more skilled workforce in such of the primary reasons why industrialecosystems for frontier industries such as areas. The roles of GRIs, which were planning is not aligned with nationalthe rare earth (RE) metal oxides, an industry established to develop new products and priorities.supported by the existing policy framework, technology in specific fields, have to bee.g. Atomic Energy Licensing Regulations revisited and realigned. Such an approach Those with awareness on various STI and2011. In November 2014, ASM launched a will encourage the creation of sustainable related functions, bodies, policies andBlueprint premised on the future global and frontier industries or industries of the future, benefits, also recognise the existence ofregional demand for RE, which justified an which will contribute to Malaysia’s vision to multiple lead agencies which work ininvestment by Malaysia to create a totally emerge as a knowledge-intensive, isolation and affect the overall effectivenessdomestic rare earth supply chain. Malaysia– innovation-driven, high-income society. In of implementing STI policies.with its track record since the 1960s as a addition, the integration of specialRE producer and exporter and host to the communities into the mainstream society In addition to the overarching NPSTI, therelargest single light RE separation facility as well as national development should be are at least 56 national policies thatin the world – is well positioned to attract one of the core objectives of any STI policy recognise the role of STI in promoting theirspecialised refining and fabricating vendors framework. agenda, with more than 20 ministriesto cover the entire spectrum of rare earth- implementing them across the variousenabled products. Against this backdrop of strengths and sectors of the economy. Industry players opportunities, it is also important to take have voiced their concerns about overlaps inSimilarly, the lithium-based energy storage note of some obstacles and fundamental addition to challenges faced when dealingecosystem is also a high potential area of weaknesses that exist in the system based on with so many different agencies and learning 89

about policies that may not even be aligned bandwidth technology are not available The next critical issue that needs to beto their needs. Along with poor awareness, in the country, unlike other developing resolved is the disconnected approach inthe industry also has an issue sourcing funds countries where it may be used for the tripartite relationship between thefor R,D&C. What make matters worse is the e-learning, e-commerce, etc. industry, the universities and theabsence of a centralised body or agency to Government. Industrial linkages are seenkeep track of funds allocated and sanctioned Similarly, the global standard for the as a source of knowledge and a catalystby various ministries (governing different commercialisation of new technology or for R&D development in universities,sectors) for undertaking R&D and/or for R&D is at 10%, which has also been the especially for the purpose ofimplementing STI programmes and benchmark here in Malaysia (Parlimen commercialisation (Chandran et al. 2009).initiatives. Malaysia 2011). Under the 10MP, the The Government continues to promote expectation is to hit 5% by 2015 from the 4% various university-industry linkagesAs per the limited information available in reported in 2011. The industry reinforces the (Figure 4-3), with a view to facilitatethe public domain and Government archives, fact that for commercialisation, adoption is meaningful exchange of information,on average, RM5.38 billion has been the biggest barrier, although it does depend R&D priorities, funding requirements andallocated in the 9MP and 10MP towards STI on factors such as the track record of the sustainable outcomes. Some of theprogrammes and initiatives. MOSTI also has technology provider, its branding, aftersales institutions, which help foster suchseveral funds at its disposal for the use of service, sustainability, etc. relationships or linkages include AIM,industry (Further Reading 4-3). Most recently MIGHT, SME Corp. Malaysia, Platcomin 2014, under the auspices of the Likewise, there is a huge gap between the Ventures and MASTIC.Jawatankuasa Pelaburan Dana Awam available technology and the needs of the(JKPDA) – a joint secretariat between AIM market, which poses a challenge to The Public-Private Research Network (PPRN)and NSRC – the 1DANA Portal was launched indigenous innovative products or solutions. is another programme introduced by theas a central source or funding hub for public The industry promotes a view that Government to study the needs of thefunding programmes and public R&D universities and research institutes may industries and resolve specific issues facedfacilities. The portal also provides expertise assume that their findings are primary, but by companies in relation to application ofbased on economic growth sectors including their R&D outcome is not parallel to the technology. An incentive of RM50 million wasprojects that are ready to be commercialised industry’s needs and therefore, cannot be introduced under this programme toby PRIs, GRIs and universities, as well as commercialised. However, the industry promote demand-based innovativepublicly-funded funding programmes. needs to appreciate the role of universities programmes. PPRN aims at establishing an or RIs as solution providers, towards ecosystem that is triple-helix in nature andOne of the biggest issues Malaysia faces successful commercialisation of ideas knowledge-friendly, where knowledge isin terms of technology adoption and/or through exchange of knowledge rather than produced, assimilated and distributed tocommercialisation is a clear gap between targeting commercialisation of products and those companies that need it to upgradesupply and demand. The local industry is services. For instance, the revenue their technologies and business models.generally trading in practice as 90% of the generated by MOE is derived fromSMEs were concentrated in the services commercialisation of ideas, which is However, the industry holds the view thatsector (Department of Statistics Malaysia further divided into six components namely, university researchers are not fully utilised in2011). Industry supports the view that many talent, publications, intellectual property, innovating products or services as they failhigh-end services supported by high training, consultation and contract research. to properly share evidence of R&D value intechnology may not be available in Malaysia. order for the industry to confidently fund theFor example, services supported by high proposed research. The biggest concern, as90

highlighted by the industry, are the reviewcommittees that approve R&D proposals(submitted under industry-universitycollaboration), who may not have the STIexpertise to fully understand the value of thecollaboration as well as the outcomes.Having said this, there is a need for evidenceon how the industry has deployed itsresources to promote R&D for advancementof the STI agenda as well as their ownbusiness. 2001 2008-2010 2013 2014 2015MIGHT Technology TechMart Innovation Business Steinbeis Malaysia PPRNNurturing (MTN) Anchored by: Opportunities Foundation Anchored by:Anchored by: • MASTIC, MOSTI Anchored by: Anchored by: • MOE• Platcom Ventures • SME Corp. • Platcom Ventures • Platcom Ventures• AIM • AIM • AIM• SME Corp. Malaysia Malaysia • SME Corp. Malaysia • MiGHT• MIGHT S2A via Science for Industry (S4I) Anchored by: • MASTIC, MOSTI • MIGHTFigure 4-3. University-Industry Linkage Initiatives 91

Way Forward: An Ecosystem ThatWill Motivate the Industry toUndertake More R&D as well asto Contribute Significantly to theSTI Agenda of Malaysia 1 2 A National STI Data Centre can help obtain and create a centralised ‘knowledge Strategise Effective Implementation Aggressive and Seamless Information repository’, providing universal access to of Formal and Regulated Linkages Flow to Disseminate STI Agenda the most critical and credible Malaysian for Public-Private Partnerships amongst Industry Players STI information (for the benefit and Enable an “STI Stakeholder Engagement The low STI awareness amongst the empowerment of the industry). Such a centre Model”, which will not only define the industry can be due to limited opportunities can also help synergise and coordinate all “critical stakeholder universe” essential for conversation / engagement on STI, STI funds, plans, policies, and programmes for STI policy implementation success but limited exposure to global developments across sectors, to avoid duplication of efforts will also define the nature and extent of and poor knowledge to embrace the value and maximise output. For instance, Korea collaborations (sustainable) between the of STI (Figure 4-4). invests heavily in research infrastructures industry and other STI proponents and has established the National S&T (including academia) to meet the Question: Are Not Sure Yes Information Service (NTIS), a centralised objectives of NPSTI through various you aware of any 32.65 % 36.73 % database on Science and Engineering (S&E) STI Stewardship Programmes. national policies / or human resources and S&T infrastructure, to and infrastructure No monitor these developments in a more92 that supports SMEs 30.61% efficient manner. & the Industry to achieve local, Besides, an awareness and enculturation regional and campaign for the industry using appropriate global growth? and innovative ICT channels will help enhance the level of understanding as well Figure 4-4. Poor awareness of STI Policies among as involvement in promoting STI agenda. industry players The industry associations, with measurable Source: Industry Perception Audit 2014 KPIs, can educate and mobilise the industry

towards creating a better STI ecosystem. members of the European Commission,This should encompass nominating industry the Council of Ministers and the Europeanassociations as well as successful companies Parliament. At the national level, membersto represent on various policy-making communicate ERT’s views to their nationalcommittees, R&D review panels, consultation government and parliament, as well asclinics of ministries etc., to make STI business colleagues, contacts in industrialinitiatives more relevant and measurable in federations, other opinion-formers and theterms of their impact on the industry. This press.could also mean establishment of a NationalSTI Exchange Centre for the industry to Further Readingscross-pollinate and tap local, regional andglobal growth opportunities. The industryassociations can establish a modus operandisimilar to the European Roundtable ofIndustrialists (ERT).Drawing on the global experience of its 4-1 pg. 158 members, ERT identifies important issuesrelated to European competitiveness and Industry perception audit key findingsexamines how public policies could facilitate and ad verbatimimprovements. ERT makes its views known tothe political decision-makers at national and 4-2 pg. 174 European level by means of reports, positionpapers and face-to-face discussions. At the Industrial policy interventions in China,European level, ERT discusses its views with India, Japan and Korea 4-3 pg. 176 STI funds under MOSTI 93

0