Why
Malaysia has to be innovative?
Malaysia has come a long way
in the 53 years since she gained independence, making the transformation from
an agriculture-based economy to an industrial and service-oriented one.
Since independence, per
capita income has grown from USD260 to USD8,000, while poverty has plummeted to
3%*. Despite scepticism from the international community, Malaysia’s decisive
leadership pulled the Nation through the 1997 Asian financial crisis in better
shape than many of its neighbours. The country was also able to survive the
2008 global financial crisis relatively unscathed.
One of the reasons for our
continued buoyance in the face of challenge is our flexibility in adapting to
the changes taking place globally as well as our ability to take the best from
the successful economic and business models of various countries and applying
it to the Malaysian context.
This has hitherto ensured
Malaysia a strong position as a global player and a leader in the region.
However, competitions from newly emerging markets in the region are already
generating excitement in the international arena.
Malaysia’s regional
neighbours such as Thailand, Indonesia, Vietnam and the Philippines, while
still lagging behind in many development sectors, are fast becoming a force to
contend with.
The BRIC nations of Brazil, Russia, India and China are all at a
similar stage of new advanced economic development and by 2050, their combined
economies could eclipse the combined markets of the current richest countries
in the world.
Other countries that are
being viewed as the key emerging markets of the future include South Africa,
Turkey and Argentina, which enjoyed rapid economic growth during the last
decade.
How
Malaysian has to be innovative?
The Government has
introduced a variety of strategy documents and initiatives to address some of
the pressing issues facing the country. While no single instrument holds all
the answers, the National Innovation Strategy or Innovating Malaysia is
recognised as vital for promoting the foundation for future growth.
To be effective, strategies
to promote innovation must reflect the ways in which innovation takes place
today. Innovation encompasses much more than R&D; it also includes other
intangible attributes such as software, human capital and organisational
structures, as well as product and process innovations, organisational and
societal innovations and marketing.
Driving Malaysia towards the innovation
economy requires a framework that is structured so it provides reliable
support, yet flexible so it can readily adapt to rapidly changing market forces
to overcome any unforeseeable obstacles.
The framework must also promote accountability
and the delivery of results as well as encompass all of AIM’s objectives and
provide the structure that will support the innovation blueprint.
AIM has strived hard to
build the strongest foundation possible from which to launch its efforts to
propel Malaysia towards an innovation economy by incorporating two key
elements.
1. Agensi Inovasi Malaysia Act 2010
2. National Innovation Strategy or “Innovating
Malaysia”
Individually, either of
these elements alone would provide a strong base for any framework; combined,
they provide a solid bedrock upon which the rest of AIM’s framework and blueprint
is built.
The Agensi Inovasi Malaysia
Act 2010 is an Act of law passed by Parliament that provides AIM with the
mandate to revamp the current innovation landscape.
Innovating Malaysia outlines
the principal course of action that the Malaysian Government needs to embark
upon to support an innovation eco-system.
As it is multi-disciplinary
and involves a variety of players, the innovation strategy is cross-cutting, integrating
initiatives in multiple fields that complement each other to produce a holistic
approach to innovation.
Innovating
Malaysia’s strategic approach to foster innovation
1. Identify drivers to
enhance comparative advantage in selected growth areas
2. Facilitate an enabling
environment to foster innovation in growth areas within the various industries.
The formulation and
implementation of Innovating Malaysia involves a whole-of-government approach
and calls for horizontal as well as vertical co-ordination of initiatives. The
mixed approach policies to foster innovation recognise that “one size does not
fit all”.
To identify the areas for
innovation led-growth, Innovating Malaysia has adopted a ground up approach
involving close collaboration with relevant Ministries, universities, research
institutes, public innovation funding agencies, capital market intermediaries,
private firms, industry associations and non-governmental organisations.
Innovating Malaysia will
adopt the best practices and experiences of other countries, and adapt these to
the Malaysian context to ensure they are relevant to the country’s
institutional environment, regulatory policies, markets and stage of
socio-economic development, amongst others.
Innovating Malaysia will
also seek a better match between supply-side and demand-side with emphasis for
greater market-orientation.
A flourishing national
innovation system will lead to an influx of foreign direct investment (FDI),
domestic direct investment (DDI), and talent (reverse brain drain) while
producing an output of adaptive talent and the creation of an innovative
culture; all of which will benefit the Nation.
Benefits
of successful National Innovation System
1. Foreign Direct Investment
2. Domestic Direct Investment
3. Talent Growth & Technology Transfer
4. Output of Adaptive Talent
5. Creation of Innovative Culture
6. New Wealth Creation
7. Excellence in Industry Niches
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