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“Sharing Knowledge, Innovative Solutions”

For Malaysia, By Malaysian, In Malaysia

Sharing Knowledge, Innovative Solutions 1


For Malaysia, By Malaysian, In Malaysia
CHALLENGES OF MALAYSIAN ECONOMY
(Comin, 2013)

Investment & Productivity GDP Manufacturing Sector

-50% 31% - 25%


Compared to 1990s (2000) (2012)

Main impediment?
Malaysia has industry has
the potential technological knowledge gap
for SMEs to
increase their Impact to industry
productivity • Unable to adopt state of the art production methods
and move • No market for technological knowledge
companies • This makes it hard to
up the value –adopt and develop frontier technologies
chain –offer new products and services
–enter in new geographic markets
–increase efficiency of production methods

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How to Overcome the Knowledge Scarcity

Create a knowledge-friendly ecosystem


An 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 provide


solutions 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.

71,000
IHL lecturers
resources
24,000
PhD

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

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Scope of Projects How does it work?

Product development & innovation


Develop new products, services or Company describes
software or parts of them for a technological problems or areas
company where there is potential for
Innovate existing products of the productivity gains.
company to the market need

Process development & innovation


Implementation of a new or significantly
improved production processes, delivery
PPRN will find a team of
method or services experts/scientists that will
Streamline production to make it more provide/develop state of the art
efficient and to make better use of state-of- technology to solve problem.
art technology
Develop processes to scale up production

Value enhancement in supply chain


Sourcing components
Warehouse & logistic Company and PPRN will
Help develop Information Systems co-finance development cost.
solutions

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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

Commitment Component for PPRN


Matching grant PPRN:company* funding

90:10 Research materials


Up to 70% /prototyping/testing
PPRN – micro enterprise
RM50k / project

70:30
compan
• Research
– small 25% Researchers
y materials/tools
• Facilities
• Infrastructure
• In-kind
50:50
– medium & large 5% Institutions

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

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

SECTOR SME MICRO SMALL MEDIUM

Manufacturing <RM50 million <RM300,000 RM300,000-<RM15 million RM15 million- <RM50 million
<200 employees <5 employees 5-75 employees 75-200 employees

Services <RM20 million <RM300,000 RM300,000-<RM3 million RM3 million - <RM20 million
<75 employees <5 employees 5-30 employees 30-75 employees

Primary <RM20 million <RM300,000 RM300,000-<RM3 million RM3 million - <RM20 million
Agriculture <75 employees <5 employees 5-30 employees 30-75 employees

Construction <RM20 million <RM300,000 RM300,000-<RM3 million RM3 million - <RM20 million
<75 employees <5 employees 5-30 employees 30-75 employees

Mining & <RM20 million <RM300,000 RM300,000-<RM3 million RM3 million - <RM20 million
quarrying <75 employees <5 employees 5-30 employees 30-75 employees

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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Incentive for Researchers

Working experience
25% professional fee
with industry
- Of total PPRN
- Criteria for
funding
promotion

Management of fund Project monitoring

• Researcher –
Interim & Final
Will be paid through project report
research Institution • Company –
Productivity
achievement

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PILOT STUDIES
Take-off Innovation Project
• 16 - 18 Jun 2014
2 • KPM-MTDC

pilot projects Demand-Driven Innovation


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

• 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 Steinbeis
Models
• 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 following


Malaysian 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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Any inquiry, please email to:

pprn@moe.gov.my

THANK YOU

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For Malaysia, By Malaysian, In Malaysia

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