“sharing knowledge, innovative solutions” for malaysia, by malaysian, in malaysia sharing...

“Sharing Knowledge, Innovative Solutions”For Malaysia, By Malaysian, In Malaysia

Sharing Knowledge, Innovative Solutions

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For Malaysia, By Malaysian, In Malaysia

CHALLENGES OF MALAYSIAN ECONOMY(Comin, 2013)

Impact to industry• Unable to adopt state of the art production

methods• No market for technological knowledge• This makes it hard to–adopt and develop frontier technologies–offer new products and services–enter in new geographic markets–increase efficiency of production methods

Investment & Productivity

-50%Compared to 1990s

GDP Manufacturing Sector

31% - 25%(2000) (2012)

Main impediment?industry has technological knowledge gap

Malaysia has the potential for SMEs to

increase their productivity and move companies

up the value chain

Sharing Knowledge, Innovative SolutionsFor Malaysia, By Malaysian, In Malaysia

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How to Overcome the Knowledge Scarcity

Create a knowledge-friendly ecosystemAn environment where knowledge is produced and diffused

from those that have it to those that need it

Who has it Universities & higher education institutions

Who needs it Companies/Industries


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SELECTED INITIATIVE

Focus on demand driven research, via PPRN to providesolutions to SMEs

This is done to facilitate meeting with industries by design and no longer by chance.

It is hoped that the collaboration will move the companies up the value chain and enhance the bringing of solution to the market place.


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An initiative by Ministry of Education (MOE) as one of the strategies to increase productivity and strengthen Malaysian economic development through innovation and commercialization programs.

71,000lecturers

24,000PhD

PPRN will optimize & leverage resources and expertise available at IHLs and RIs

IHLresources


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Product development & innovationDevelop new products, services or software or parts of them for a companyInnovate existing products of the company to the market need

Process development & innovationImplementation of a new or significantly improved production processes, delivery method or servicesStreamline production to make it more efficient and to make better use of state-of- art technologyDevelop processes to scale up production

Value enhancement in supply chainSourcing componentsWarehouse & logisticHelp develop Information Systemssolutions

Scope of ProjectsHow does it work?

Company describes technological problems or areas

where there is potential for productivity gains.

PPRN will find a team of experts/scientists that will

provide/develop state of the art technology to solve problem.

Company and PPRN will co-finance development cost.


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Selection criteria and requirements for Industrial Technology Problems

1. Projects need to be technological in nature. Projects that essentially involve management or marketing solutions will not be considered.

2. Projects that involves product that need and require the development of innovative technological solutions must be at commercial stage i.e ready in market but may need improvement in term of process or product itself.

3. Projects that essentially require the purchase of off-the-shelve solutions such as products, software or services will not be considered.

4. There is no field restriction. Projects may involve any area of applied science or engineering.

5. Priority will be given to projects that can be completed within six months, but the secretariat may accept project duration up to a year if they have significant social and business value.

6. Ministry of Education Malaysia (MOE)/PPRN will finance a portion of the total project cost and companies should be ready to co-finance their project.


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Funding mechanism

* Size of company is based on new definition of SME by SME Corp Malaysia which in effect from 1 January 2014

Matching grant

90:10– micro enterprise

70:30– small

50:50– medium

70%

25%

5%

Up toRM50k / project

Commitment PPRN:company*

Research materials/prototyping/testing

Researchers

Institutions

Component for PPRN funding

• Research materials/tools

• Facilities• Infrastructure• In-kind

PPRN

compan y


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Guideline for new SME definition(in effect from 1 January 2014)

NOTE:A business will be deemed as an SME if it meets either one of the two specified qualifying criteria, namely sales turnover or full-time employees, whichever is lower.

SOURCE :SME Corp. Malaysia, October 2013


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SECTOR SME MICRO SMALL MEDIUM

Manufacturing <RM50 million<200 employees

<RM300,000<5 employees

RM300,000-<RM15 million5-75 employees

RM15 million- <RM50 million75-200 employees

Services <RM20 million<75 employees



RM3 million - <RM20 million30-75 employees

PrimaryAgriculture

<RM20 million<75 employees




Construction <RM20 million<75 employees




Mining &quarrying

<RM20 million<75 employees




25% professional fee- Of total PPRN

funding

Working experiencewith industry- Criteria for promotion

Will be paid through research Institution

• Researcher – Interim & Final project report

• Company – Productivity achievement

Incentive for Researchers

Management of fund Project monitoring


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PILOT STUDIESTake-off Innovation Project• 16 - 18 Jun 2014•KPM-MTDC

Demand-Driven Innovation Project (DDIP) by PPRN• 17 - 20 November 2014•KPM-MTDC- SME Corp-PUNB

2pilot projects

• Conducted in 2 pilot projects:• Findings:

– Malaysian companies try hard to improve their technology– Can benefit from external help– Much research/knowledge is sitting in universities and research institutes– Can be used to provide solutions to companies technological problems– This is cheap and efficient


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Differences between Fraunhofer and SteinbeisModels

• PPRN taps on a great pool of local knowledge

• PPRN relies mainly on technology diffusion but can lead to innovations Fraunhofer almost exclusively innovates Steinbeis acts more like management consultant

• PPRN covers all economic sectors/areas not just a few

• PPRN focusing on short and medium term project

• PPRN is designed thinking about Malaysia’s needs and works followingMalaysian rules

• PPRN provides platform of bidding


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CONCLUSION

• PPRN can solve technological problems of many Malaysian companies

• Facilitate their move up the value chain

• This is a more efficient way to bring knowledge to society DISTINCT from product development

• Tap on large existing pockets of knowledge

• Align incentives of researchers to conduct more applied research in the fields that are more helpful to companies; to focus on market demand

• Increase demand for skilled and semi-skilled workers

• Make growth more inclusive


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