Post on 29-Dec-2015
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“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
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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
<RM300,000<5 employees
RM300,000-<RM3 million5-30 employees
RM3 million - <RM20 million30-75 employees
PrimaryAgriculture
<RM20 million<75 employees
<RM300,000<5 employees
RM300,000-<RM3 million5-30 employees
RM3 million - <RM20 million30-75 employees
Construction <RM20 million<75 employees
<RM300,000<5 employees
RM300,000-<RM3 million5-30 employees
RM3 million - <RM20 million30-75 employees
Mining &quarrying
<RM20 million<75 employees
<RM300,000<5 employees
RM300,000-<RM3 million5-30 employees
RM3 million - <RM20 million30-75 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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