innovation and commercialization: malaysia...

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2015/HLPD-STHE/009 Session 4

Innovation and Commercialization: Malaysia Perspective

Purpose: Information

Submitted by: Malaysia

High Level Policy Dialogue on Science and Technology in Higher Education

Manila, Philippines13-14 August 2015

17/8/2015

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GOVERNMENT

ACADEMIA

INDUSTRY

COMMUNITY

1st APEC High Level Policy Dialogue on Science and Technology in Higher Education

“Innovation and Commercialisation:

Malaysia Perspective”13th to 14th August 2015

Phi l ippine International Convention Centre

Dr. Arham AbdullahDi rector

In dustry Relation DivisionHi gher Education Department

Mi nistry of Higher Education Malaysia

Ministry OfHigher Education

2025

2 30 1Wave Wave Wave

Build momentum and lay

foundations

Accelerate system

improvement

Move towards excellence with increased

operational flexibility

2013 2015 2020

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3


Outline

Stages of economy in Asia

How can Higher education help move the innovation

economy agenda of the country?

Are we there yet?

Innovation ecosystem

R&D towards commercialization: Paradigm shift

4


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Rubber, palm oil etc Multinationals at free trade zones

Knowledge‐based

5

Stages of Economy in Asia

Resource-driven Innovation-drivenFrom to

Resource -driven

economy

Investment-driven

economy

Innovation-driven

economy


Science

TechnologyManagement

GenerateKnowledge

DisseminateKnowledge

Translate knowledge(Value Creation of

knowledge ThroughInnovation &

Entrepreneurship)

Provide solutions Through

Real-World Experiences

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Train innovators of tomorrow

•Curriculum that creates entrepreneurs to participate in Startups

• Graduates that job creators rather than job seekers

•Graduates that cares about humanity

Empower values-driven talents to be action-oriented leaders who deliver solutions that ensure sustainability of change

Engine of growthfor the nation

via commercialization of R&D products and development

of K‐based enterprises

Role and expectations of Universities in the globalised economy

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We are expected to go through

R –D –C – E- Community engagement (to help humanity and create wealth for the country)

as SOLUTION PROVIDERS

Expectations of Modern Universities in the Innovation Economy

Brains to Business to Humanity

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The assets that drive economic success: Patents (indicate that research findings are industrially

applicable) Advanced research Venture capital University graduates and Ph.D.s Air, Rail and Sea hubs

*Source: Bruce Katz, TIME Magazine, 21st Oct 2010

Assets that drive economic success are in IHLs and RIs

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Innovation drives Economic Success Ministry OfHigher Education

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Political Will

The need to develop innovative talents

Allocation of GDP for Research

Allocation of Research grants

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How serious is a country about its R&D and the Innovation economy?


10

Political Will

9th Malaysia Plan : Government committed

RM 1.363 billion

FRGS : RM285 million

Implementing RUs : RM1.06 billion to

Establish and maintain HiCoEs : RM18 million

10th Malaysia plan : Secured RM 2.388 billion

Implement FRGS : RM1.539 billionRUs : RM800 million

HiCoEs : RM49.3 million

Ranked 35th out of 60 countries for having

1.07% gross expenditure on R&D

Technofund and Innovation funds are also

allocated to promote commercialization of research products

Malaysia has the political will to ensure that R&D is

the national agenda to drive the K-economy of

the country


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Phase 1: Consolidating Research

Phase 2: Consolidating Development

Design, engineering and technology integration

Phase 3: Consolidating Commercialization

Patent, Marketing, Entrepreneurship and licensing

R

Phase 4: Consolidating Knowledge-based enterprise (Research Park)

Research discoveries, acquisition of technologies

Spin off companies/ JV companies

Should see a smooth and

continuous flow of R-D-C-E

PHASE 1Making scientific discoveries

PHASE 2 Develop prototype

PHASE 3 Commercialize

PHASE 4 K-enterprise11

Moving Towards Successful New Economy: R&D Challenge

D

C

E


Reality check: Status of R&D in Malaysia

Phase 1: Consolidating Research

Phase 2: Consolidating Development

Phase 3: Consolidating Commercialization/Innovation/Technology licencing

Commercial arm of the University Entrepreneurship Spin-off companies JV Companies LicensingWHY are we

not there yet? Phase 4: Enterprises

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R

D

C

E???


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Commercialization of research products

Commercialization of R&D products is not a simpleprocess

Latest figures showed that among Malaysian Public Universities, commercialization of local R&D products at 5.1 % in 6th and 7th Malaysia Plan (MP), 3.4% in 8th MP .Done mainly through consultation, licensing and entrepreneurship

It is linked with the innovation ecosystem of thecountry.

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Quality of Innovative Human resource

• Curriculum lacks elements of creativity & innovation

• Limited pioneer mindset capability

Supply of Innovative

Human Resource

• Need 70 RSE per 10,000 workforce to be a developed nation.

• Current status: 57 RSE per 10,000 workforce

• Insufficient number of postgraduates

• Brain drain due to weak strategies to retain talent

Moving idea to The-Market-Place

• Weak internal ecosystem for innovation

• Low number of IPs and commercialization efforts

• Insufficient pre-commercialization grants

• Limited entrepreneurial skills and business know-how

• Limited communication between academia and industry

• Absence of full-fledged incubator facilities

Why are we not there yet?

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REASONS

Poor academia-industry relationship and hence companies do not deal very much with universities / Our dateline for deliverables are elastic.

MNCs do little RND with universities here since they are very dependent on their mother country. Perception of industry to the universities needs to change.

Universities are not collaborating with the industry fast enough



Progress in IP filed and attained

is low.

Academic patents are early stage technological

developments which is usually characterized by market

uncertainty

Majority of IP filed in Malaysia is owned by foreign multinationals

SMEs lack the resources and rarely involve itself in R&D

Industries want incremental improvements and university is

providing Blue sky research findings and discoveries.

(MISMATCH)

Weak academia-industry relationship since commercial

arm and TLO are run by academics


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The Universitas 21 report provides an assessment of Higher Education in 50 countries across four dimensions

CURRENT STATE OF HIGHER EDUCATION

SOURCE: Annual report by Universitas 21, a global network of research universities for the 21st century with 26 members that enro ll over 1.3 mil lion students and employ over 220,000 staff and faculty. The U21 Index compares national Higher Education systems for 50 countries

RESOURCES

12ENVIRONMENT

2

26CONNECTIVITY

3

35OUTPUT

4

44Malaysia

OVERALL

289 11 5 19 10

47 30 30 47 4250 37 25 50 4819 4 7 23 1518 39 32 18 21

TYPE OF METRICS USED

Singapore

Thailand

Indonesia

Hong Kong

South Korea

Government expenditure, investments, R&D

Qualitative assessment of policy and regulatory environment

Collaboration globally and with industryInternational student enrolment

Research outputInstitution rankingsEnrolmentEmployability

Averagescore of the four categories

4 3 15 1 121 16 3 2 816 8 8 6 9

USA

UK

AustraliaGlo

ba

l B

en

ch

ma

rks

As

ian

N

eig

hb

ou

rs

U21 Report: “28th Rank is expected for Malaysia’s income level”

Rank out of 50 countries1

PRELIMINARY

Addressing the gaps: the need for paradigm shifts

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Create the Right Ecosystemfor an Innovative Society

Education

Industry VenturesInnovative Society

Government

Innovation Ecosystem

Each component must move in harmony to

complement and synergize the efforts

of the others.

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7Inovasion

Ecosystem

10 Shifts

Kerajaan

QuadrupleHelix

Universiti

Industri

Komuniti

Government

Universities

Industry

Community

LingkaranEmpat Pihak

1 2 3 4 5 6 8 9 10

CREST

PPRN

Collaborative Research in Engineering Science and Technology

Public Private ResearchNetwork

Establishing Support Systems for the Commercialisation of Ideas

ITMA; MyInnovationHub, Steinbeis Transfer Center

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Challenge to Enhance Commercialization : Need for Paradigm Shift

Commercialization is the ability to provide solution to a need that can generate income.

The solution is called an invention. Only when it has been commercialised is it called an innovation.

How we provide the solution can be seen in 2 forms:• University-driven (providing solution to either society or

industry by researchers; initiated by the researcher ), create IPRS, spin-off companies, talents for nation building, competitive edge in K economy

• Demand –driven (providing solution to industries: initiated by industries)

Both ways are known as commercialization of ideas or solution providers 21


Commercialisation of Ideas (Solution Providers)

Knowledge Workers

Contract Research

Intellectual Property

PublicationsConsultation

Training

Commercialisation of Ideas

ProductsServices/ Solution

Providers

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Innovation ecosystem

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Malaysia needs to transform from a traditional, government-led, commodities-driven economy into a knowledge-centric economy.

Innovation ecosystems are essential to such knowledge-based growth.

Who’s job is it to

commercialize?

Commercialization is everybody’s job

University = Solution providers


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Public-Private Research Network (PPRN) is a new initiative by Ministry of Higher Education (MOHE) as one of the strategies to increase

productivity and strengthen Malaysian economic development through innovation

and commercialization programs.

PUBLIC-PRIVATE RESEARCH NETWORK (PPRN)


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Public-Private Research Network (PPRN)

PPRN

Focus on demand driven research, via PPRN to provide solutions to SMEs

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

The collaboration will move the companies up the value chain and enhance the bringing of solution to the market place.


• PPRN i s a quick win platform to drive the A‐I collaboration through knowledge and technology transfer program.

• The problem must be driven by industry or market and using the top down concept where the Universities or Research Institute must bid for the identified project

• The funding will come from the matching grant from the Industry/Company and the Government Agencies

• The program will increase the “Commercialization of Ideas” with the collaboration between Academia and Industry

• 9 projects took‐off in Jun 2014 worth RM216k. 100 more worth RM3m took‐off in November, 1000 Projects in 2015

Criteria• Duration • Relevance• Technical value of the solution• Experience of the research team• Encourage Institution

collaboration Cost• Win2 Projects

Industries(NKEAs)

PALM OILFINANCIAL SERVICES

TOURISM BUSINESS SERVICES ELECTRONICS & ELECTRICAL

WHOLESALE AND RETAIL EDUCATION HEALTHCARE

COMMUNICATION CONTENT AND

INFRASTRUCTUREAGRICULTURE GREATER KUALA

LUMPUR

(GLC, MNC, SME)(MIGHT‐Nano

Malaysia – CREST etc.)

Problem Definition Process

Project A

Project B

Project C

Technology Based Project Funded by Matching Grant

from Company and Government Agencies

Universities/Research Institutes Expertise‐20 IPTAs , 59 IPTSs, Majlis ProfesorNegara,

HiCOE, ICoE, Tech Transfer Offices‐16 Research Institute (SIRIM, IMR, FRIM,

MPOB, MINT, MIMOS etc.

Bidding Process

PUBLIC‐PRIVATE RESEARCH NETWORK(MTDC/SME CORP/MIDA/MOE)

Academia

Public-Private Research Network (PPRN) - Service/Solution Providers

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Total RU funding RM 3.54 billion (2007‐2014)Total RU *revenue RM 5.33 billion (2007‐2014)

Grant spent / patent

RM704K

Grant spent / (patent &

IP)

RM408K

Ratio commercialized product (306) :patent (7,234)

1:23 (4.2%)

Cost per commercialized

product

RM17m

Grant spent / publication

RM46k

115, 668

PhD and Masters produced

(2013)

Revenue from commercialization and technology licensing RM31mil (5RUs; 2010-2014)

Cumulative minimum RM 48.6 million (up to 2013)

50.6% ROI

RM5.1 billion

(2007‐2014)

Sumber : eMyRA

RETURN ON RESEARCH INVESTMENT (2007 -2014)

RM 37,175/ student

Total *Revenue of 20 IPTAs RM 6.56 billion (2007 – 2014)NRU = RM1.23B

* Income generated including courses, training, services, consultancies, PG students registration fees, gifts and endowment

28.6% ROI

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Total IPs : 7,234 for 20 HLI’s

Commercialize project by 20 HLI’s for RMK 9 and RMK 10 : 306 by the

definition of -

Total of commercialize new product (produce income)

Total licensed knowledge technology (technology know-how)

4.2% commercialization

success rate

Commercialization (2007-2014)

Low ROI


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Talking about ROI

• In USA, commercialization of R&D provided a low ROI. Invested USD 147 billion in research with USD 90 billion going to the universities but generated around 5-10% return on investment.

• Problem is that we are too focused on numbers and not really on the impact of the patent to the marketplace. There is a need to come out with new measurements and indicators.

• A better metrics on technology transfer is needed.

• We need to measure the bigger picture of the technology transferred eg Korean model.

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RM5.33Billion(solution provider)

RU as the Engine for Wealth Creation

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Allocated for RU (2007–2011)

Wealth Creation(2010 – 2020)projected

Source : 1 – NKEA, 2010, 2 – RU Data Compilation, 2012

Key Contributors

•Jobs creation1

182,720RM 31Million

(comm of R&D product

RM3.54Billion

investment

Generated Revenue(2007 – 2011)

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Way forward

Government has to look on commercialization Ideas rather than focusing on commercialization of R&D products. Not all IPs can be commercialised due to mismatch with industry capability.

Most training , consultancy and research contracts have been executed together with the help of industry to increase the value chain of the sector. There is a need to evaluate the impact to the sector.

There is a need to look and evaluate the bigger picture of the technology transferred and not just concentrate on the number counts.



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7TH APRIL 2015

210 LONJAKAN

TalentExcellence

Empat Laluan Kerjaya

Pendidik Penyelidik PemimpinInstitusi

PengamalProfesional

(Educators) (Researchers) (Leaders) (Practitioners)

I II III IV

1 3 4 5 6 7 8 9 10

ProgramFakulti CEO(CEO Faculty)

(Four Career Path)

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MODE 1 MODE 2

• The CEO will Co‐teaching with a Professor on a particular subject at one selected Host University.

• The CEO will conduct Keynote Address/Public Lecture/Motivational Talk/Seminar/Advisory Panel etc. at Host and several Affiliate University

• Guest Speaker Invitation by MOHE (Minister):‐ Dr. Richard Parker (Group Director

of Research & Technology) Rolls Royce) – (UPM)

‐ Dato YasminMahmood (CEO MDEC) – (UTM)

‐ Alois Hofbauer, Nestle (Malaysia) Berhad Managing Director (UIAM)


Mode of Engagement

Group CEO, Air As ia Berhad

Independent Non‐Execi tive Chairman of Media Prima

Managing Director, KhazanahNational

Berhad

Pres ident of Redtone

International Berhad

Group CEO of CIMB Malaysia

Tan Sri (Dr.) Tony Fernandes

Tan Sri Johan JaafarTan Sri Dato’ Azman bin Haji Mokhtar

Datuk Wei ChuanBeng

YM Tengku Dato’ Zafrul Azizi

HOST UNIVERSITY 2015‐2016


CEOs Matching

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CMS Consortium Sdn Bhd.

Group CEO of Maybank Banking

Berhad

Managing Director, Shell Malaysia

Trading Sdn. Bhd.

CEO of PrestariangBerhad

CEO of Huawei Malaysia

Dato’ Seri Syed Zainal Abidin

Datuk Abdul FaridAl ias

Encik Azman Ismail Dr Abu Hasan IsmailMr. Abraham Liu

Kang



CEOs Matching

Pres ident, Samsung Malaysia

Electronics Sdn. Bhd.

Pres ident & Managing Director,

Novartis Corporation

Pres ident B. Braun Medical Industries

Sdn. Bhd.

CEO of Jobstreet.com

Managing Director, Al ‐IkhsanSdn. Bhd.

Mr. Lee Sang HoonMdm. Michaela

DinboeckMs. Anna Braun

Mr. Mark Chang MunKee

Tuan Haji Ali Hassan Mohammad Hassan



CEOs Matching

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Group Managing Director, iA Group

Sdn. Bhd.

Executive Chairman of Proven Holding

CEO, As ian Finance Berhad

Executive Chairman of Nusantara Technologies

CEO, PKT Logis tcsGroup Sdn. Bhd.

Datuk Hamzah bin Kassim

Dato’ Yusof JusohDatuk Mohamed Azahari Kamil

Adjunct. Prof. Dato’ Dr. Ghazali

Datuk Michael Tio



CEOs Matching

Managing Director, Motorola Solutions Malaysia Sdn. Bhd.

Managing Director and Vice Pres ident, Altera Corporation

(M) Sdn. Bhd.

Mr. O HariNarayanan

Dato’ Dr. Mohd Sofi Osman



CEOs Matching

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• Structured Internship• Practical Tra ining• Industry Led Curriculum• Adjunct Lecturers• Industry Centre Of Excellence

(ICOE) Program • Ind‐E‐Zone• Industry University CSR

Program• Scholarship Award• Professional Exam Program• Bridging the Gap Program• Entrepreneurship Program• Talks, Coaching, Mentoring

• Research Contract• Col laborative Research

Agreement• Cl inical Trial Agreement• Uti l izing Lab Facilities • Research Endowment• University Industry Research

Centre• Post Graduate Program

(Masters, PhD, Eng. Doc)• Industry Sabbatical

• Spin Off/ Startup Companies• IP/Technology Licensing• Incubators spaces at

Science/Technology Park• Co‐development of Universities

Land Banks• Academic Entrepreneurship

Program

ACADEMIA– INDUSTRY COLLABORATION

• PPRN Publ ic Private Research Network

• Solution Provider to Industry

• Industry Led Innovation Competition

• University as Expert Service Provider

• Continuing Professional Development (CPD) Tra ining

• Short Courses

Graduate Employability Research & Development Commercialization

Innovation Consultancy

Academia Industry

Collaboration


Graduate Employability

High Income Nation by 2020

Pendidikan Berkualiti InsanTerdidik Negara Sejahtera

NEW ACADEMIA-INDUSTRY NETWORK(BLUE OCEAN STRATEGY) MOE/PMO/MITI/MOSTISPT-JPT/TalentCorp/MIDA/MTDC-SMECorp

Industry CollaborationR.I.C.E and CSR

Component 1:• 1 Graduate 1

Industry/company• Academic Industry

Council• Talent Matrix• Pre-symbiosis• Cross Fertilization

A-I Program• Recognition A-I

Engagement• AINA• IND-E-ZONE

Component 2:

• Public-Private Research Network

• MyAIN Malaysia Extensive Networking/ Matching Event

Component 3:

Energyzing Tech. Transfer Office• AKEPT Training• Professional

Certification• Innovation and

Technology Managers Association

Component 4:

Strengthening Academia-Community Ecosystem• Science/Techno

logy Park• ICOE• CSR with

Academia• NBOS4

The Quadruple Helix ModelA-I-C-G Framework


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