Raslan Ahmad, Ph.D Yayasan Inovasi Malaysia raslan@yim.my yim.my

1. Towards an Innovative Society and a High Income Advanced Economy” Raslan Ahmad, Ph.D YayasanInovasi Malaysia raslan@yim.my http://www.yim.my Yayasan Inovasi Malaysia Youtube.com/yayasaninovasimsia Twitter.com/YayasanInovasi

2. Outline • Who are we? • Where we want to go? • Where are we now? • What are the challenges?

3. Outline • Who are we? • Where we want to go? • Where are we now? • What are the challenges?

4. About Malaysian Innovation Foundation (YIM) • YayasanInovasi Malaysia (YIM) was established in November 2008 with the main goal to promote and inculcate creativity and innovation among Malaysian citizens, especially targeting children and youth, women, rural folk, people with disabilities and non-government organizations. • YIM’s corporate objectives are to: • Promote & inculcate the awareness and culture of creativity and innovation • Record, preserve, promote and rewards social innovations • Provide institutional supports in scouting, spawning, sustaining and scaling up grassroots green innovations

5. SCHOOLS YOUTHS DISABLE RURAL WOMEN

6. Outline • Who are we? • Where we want to go? • Where are we now? • What are the challenges? • What can we do together?

7. 12 Agriculture Based Economy Resource-Led Economy Innovation-Led Economy • Knowledge based Critical Success Factors • Technology • Market • Funding (risk capital) • Basic Input Factors • Infrastructure • Collateralized risk- free capital • Labour • Basic Input Factors • Land • Labour LOOKING BACK, MOVING FORWARD Late 1990s to 2020 and to 2057 National Mission: To Fulfill To move the economy up the value chain To raise the country’s capacity for knowledge, creativity and innovation and nurture “first class mentality” To address persistent socio-economic inequalities constructively and productively To improve the standard and sustainability of our quality of life To strengthen the institutional implementation capacity of the country 1 1980s to mid 1990s 2 1957 to late 1970s 3 4 • Rewards are rapid and sustainable: • Wealth creation • Employment creation • Societal well being 5 Source: MoSTI, 9th Malaysia Plan

8. 2.40 POST CRISIS, MALAYSIA’S GDP GROWTH HOVERS AT 5% Malaysia was in the group of leading East Asian countries Now: Most countries except China are facing challenging times 1990-1997 GDP % 2000-2006 GDP % • Growth rate • Selangor 5.2% • Penang 5.0% Malaysia * * China * * Urban China GDP growth 3x of Malaysia China urban* * * India * 5.41 China’s exports already exceed US and is expected to pass Germany Asian bench-marks Korea 7.24 4.63 7.01 Taiwan 3.44 Singapore * * Vietnam * * Global bench-marks Brazil 3.02 2.90 Russia * * Japan 1.63 1.44 Developed countries 2.02 2.52 UK 2.93 2.40 US * China – urban available until 2005 only Source: Global Insight, McKinsey Global Institute, 9MP

9. YAB Dato’ Sri Najib Tun RazakPrime Minister of Malaysia30 March 2010 “Creating a high income nation will mean higher wages throughout the economy as growth is derived not only from capital, but from greater productivity through the use of skills and innovation, improved coordination, stronger branding and compliance with international standards and Intellectual Property Rights. In a knowledge economy, investment in new technology, multi skills, innovation and creativity, and increased competency are the drivers of public and private sector performance.” The New Economic Model Goals: Creating a high income nation New Principles: High income, Sustainability and Inclusiveness. Priority: To eradicate poverty

10. INNOVATION: THE NATIONAL CONTEXT

11. The Prime Minister’s Vision - Transforming Malaysia INNOVATION

12. The Prime Minister’s Vision - Transforming MalaysiaThe Two Pillars of the National Transformation Programme 1Malaysia – People First, Performance Now Preservation and Enhancement of Unity in Diversity High Income Economic Transformation Programme (ETP) New Economic Model A High Income, Inclusive And Sustainable Nation Government Transformation Plan (GTP) Effective Delivery of Government Services Inclusiveness Sustainabiliy 10th & 11th Malaysia Plan Roll-Out Macroeconomic growth targets & expenditure allocation Implementation of Government’s Development Programmes

13. New Economic Model (NEM) Eight (8) Strategic Reform Initiatives (SRIs)All SRIs have cross-cutting impact over all sectors

14. SRI 6 Building knowledge base infra-structure Possible Policy Measures • Economic Transformation through Innovation • Transformation of the Agriculture and Industrial sectors through continuous • Innovation of significant technological advancement • Access to specialised skills needed to drive the sector • Protection of IP rights • Fostering R & D links between institutions of higher learning and private sector • Align R & D to national growth objectives • R & D funding through an open access system through competition • KPIs for Universities based on commercialisation • Research Powerhouse and centre of excellence run on a commercial basis • Promoting basic research with perceived significant potential impact on economic development • Reward for excellence in Research • R & D be made attractive to business enterprises • Incentives for International l Networking in R & D • Strengthen the role of Universities as research institutes • Establish strong research teams • Increase emphasis on research training of young scientists in internationally • competitive environments • Promote technology innovation and commercialisation • Support infrastructure for scientific research and development of human resource in S&T • Seek and provide foreign funding sources • Create stronger incentives for international networking Policy Purposes Create ecosystem for entrepreneurship Promote an environment for innovation Establish stronger enabling institutions

15. Source: Tenth Malaysian Plan 2011-2015, Pg 85 Institutional Structure Supporting Innovation and R & D National Innovation Council (NIC) Chaired by PM Provide Strategic leadership Policy decision making • Innovation Malaysia, PM’s Department • Provide policy input to NIC • Oversee functioning of the NIS • Undertake evaluation of policy instruments and programme • Assess innovation outcome • MITI • Promote enterprises innovation • Oversee resource allocation for non-technological innovation • Other ministries/agencies/ univ/research institutions • To support innovation activities in their respective areas • MOSTI • Secretariat to NIC • Formulate policies for S&T development • Overseeresource allocation for technological innovation • MPC • Undertake productivity enhancement research & activities • Advisory & training to enable enterprise innovation • MTDC • Nurture Technology based enterprises • Provide support services for commercialization • National Science & Research Council • Set priorities for R&D investment • Evaluate R&D programmes & monitor outcomes

16. Outline • Who are we? • Where we want to go? • Where are we now? • What are the challenges? • What can we do together?

17. Transformation involvesinnovation on novel ways of working (i.e doing things).... the 3rd outcome of innovation

18. What does it mean by “Action” ? • Innovative ways of prioritization / focus (KRAs) • Innovative ways of problem-solving (eg: lab) • Innovative ways of instituting discipline (PSM, DTF) • Innovative ways of delivering results (KPI, performance assessment / ranking)

19. GTP & ETP are innovative to achieve Big Result Fast Labs Roadmap / Strategy Conventional Radical / Innovative 2 mth 1.5 yrs Open Day Feedback / Syndication 1 mth 1Msia GTP Roadmap Action Plan 1.5 yrs Implement Implement

20. The outcome of GTP…. innovating to get • Big Result Fast

21. 16% drop in Index Crime -25,182 -16.0% 157,537 132,355 Jan-Sep 2010 Jan-Sep 2009

22. 38% drop in Street Crime -11,297 29,596 -38.1% 18,299 Jan-Sep 2010 Jan-Sep 2009

23. 2.4 million increase in LRT ridership

24. 538 km of rural roads completed

25. 54,569children are benefiting from 1,358 pre school classes

26. 9,816 schools (primary & secondary) have been ranked

27. 49% reduction of hardcore poor 44,463 22,559 Jan 2010 Sept 2010

28. 3716 government contracts have been published on line • myprocurement.treasury.gov.my

29. 648 people were arrested for corruption

30. Outline • Who are we? • Where we want to go? • Where are we now? • What are the challenges?

31. We are not innovating and we need to for sustainable growth.Low R&D capabilities compared to the rest of the world Number of researchers 2006 R&D articles 2006 GNI per capita (USD) GNI per capita (USD) Norway Norway Denmark Denmark USA Sweden USA Sweden Canada UK Japan Japan Canada Germany UK Australia Australia Germany Italy Italy Singapore Singapore Spain Spain S. Korea Slovenia Slovenia S. Korea Czech Republic Czech Republic Malaysia Malaysia 0 10,000 20,000 50,000 210,000 No. of researchers in R&D (per million people) No. of scientific & technical journal articles Source : World Bank Indicators 2008

32. Regional & Local Scenario on R&D We continue to lose out to our Asian neighbours and spend less on scientific research Expenditure on R&D (% of GDP) Ranking based out of 55 countries Source : DOS Malaysia, World Bank and IMD, BNM

33. Is Creativity & Innovation Understood? To begin with... let’s hear how Malaysian define CREATIVITY and INNOVATION

34. In general, Malaysian understood the meaning of creativityandinnovation…BUT There are some misconceptions

35. Let’s clear some MENTAL BLOCKS Mental Blocks that seriously hinder Creativity & Innovation

36. The FOUR great MISCONCEPTIONS about CREATIVITY andINNOVATION

37. Mental Block No.1 The thinking that only MUSICIANS and ARTISTS are CREATIVE But is this the case? Is this type of thinking sound?

38. Mental Block No.2 The idea that only INVENTORS and SCIENTISTS are INNOVATIVE But is this valid? Is this point of view correct?

39. Mental Block No.3 The idea that INNOVATION is all about making new and better PRODUCTS But is innovation only confined to product development?

40. Mental Block No.4 The idea that INNOVATION is all about new TECHNOLOGY & SOLUTIONS Is it true?

41. But the truth is... CREATIVITY and INNOVATION is by and for ALL Young and old, kids and adults, male and female

42. Plus the fact that... CREATIVITY & INNOVATION can be applied in MANY AREAS!!

43. we believe... that EVERYONE can be and should be encouraged and equipped to THINKand ACT creativelyandinnovatively

44. Thank You.. www.yim.my