Why Malaysia has to be innovative?

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

References:

1.  Innovation. January 26 2013. Retrieved from http://en.wikipedia.org/wiki/Innovation

2.  Malaysia's Innovation. January 26 2013. Retrieved from http://innovation.my/

3.   Yayasan inovasi Malaysia. January 29 2013. Retrieved from http://www.yim.my/