GUIDELINE FOR APPLIC ANTS

INNOFUND
(ENTERPRISE INNOVATION FUND AND
COMMUNITY INNOVATION FUND)

MINISTRY OF SCIENCE, TECHNOLOGY AND INNOVATION

MALAYSIA
http://www.mosti.gov.my
CONTENTS page

1.0 INTRODUCTION 3

2.0 AIMS OF INNOFUND 3

3.0 ENTERPRISE INNOVATION FUND

3.1 Eligibility 4

3.2 Target Group 4

3.3 Quantum of Funding 5

3.4 Scope of Funding 5

3.5 Technology Clusters 5

3.6 Approval Criteria 6

4.0 COMMUNITY INNOVATION FUND

4.1 Eligibility 7

4.2 Target Group 7

4.3 Quantum of Funding 7

4.4 Scope of Funding 8

4.5 Technology Clusters 8

4.6 Approval Criteria 8

5.0 PROJECT DURATION 9

6.0 AGREEMENT 9

7.0 APPLICATION PROCESS AND PROCEDURE 9

8.0 LOCATION OF PROPOSED PROJECT 10

9.0 ENQUIRY AND SUBMISSION 10

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1.0 INTRODUCTION

1.1 Innovation is a key contributor to productivity, economic growth and

higher living standards. Nations and businesses that can achieve
high levels of performance in innovation will be well placed to be
leaders in the future.

1.2 Innovation is not just about invention. It also encompasses the

process by which ideas are taken to market. Fundamentally,
innovation encompasses new products, processes and systems by
which value can be created for customers, businesses and society
more broadly.

1.3 Realising the importance of innovation to national wealth creation

and social well being, the Government initiated the Innovation Fund
(InnoFund) during the Ninth Malaysia Plan (2006 – 2010)
comprising Enterprise Innovation Fund (EIF) and Community
Innovation Fund (CIF).

2.0 AIMS OF INNOFUND

2.1 The aims of InnoFund are:

i) Individual, Micro and Small Enterprises

To assist individuals / sole-proprietors, micro and small

businesses/ enterprises to develop new or improve
existing products, process or services with elements of
innovation for commercialisation.

ii) Community Groups

To assist community groups to convert knowledge/idea
into products / processes / services that improve the quality
of life of communities.

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3.0 ENTERPRISE INNOVATION FUND (EIF)

3.1 Eligibility

To be eligible for EIF:

i) Applicants must be a Malaysian individual/ sole-proprietor,

micro, or small enterprise;

ii) Applicants must show proof that they can fund their share of
project costs not funded under Innofund;

iii) Project proposal must contain elements of technological

innovation leading to commercialisable applications,
products or services;

iv) The technological innovation may be either: (1) re-

combination/fusion / integration or (2) replication/refinement
of existing technologies with improved value, enhanced
efficiency or cost reduction; and

v) Have appropriate management team (for micro and small

enterprise only).

(Note: Micro Enterprise – annual sales turn over of less than RM250,000 or
full time employees of less than 5;
Small Enterprise – annual sales turn over of RM250,000 to less than
RM10 million or full time employees of 5 to 50)

3.2 Target Group

i) Individual / Sole Proprietor;

ii) Micro Enterprise; or

iii) Small Enterprise.

(Note: MSC Status companies are not eligible to apply for this fund)

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3.3 Quantum of Funding

The quantum of funding approved under EIF will be determined on

the merits of each application listed below:

Target Group Quantum

Individual/Sole Proprietor Up to RM20,000

Micro Up to RM50,000
Small Up to RM250,000

3.4 Scope of Funding

The eligible expenditures are:

i) Consumables / materials;

ii) Equipment (not more than 40% of total project cost);

iii) Expenditure for services (consultancy and testing);

iv) Project documentation;

v) Regulatory and standard compliance; and

vi) Market testing (including samples, fees and documentation

for participation in trade fairs and exhibitions).

3.5 Technology Clusters

Project proposals eligible for consideration must fall under any of

the technology clusters listed below:

i) Agriculture Cluster

ii) Information and Communication Technology (ICT) Cluster:

! Information System
! ICT Infrastructure
! Software
! Emerging Information Technology
! Communication

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 ! Security System
! Signal Processing
! Database Technology
! ICT Application

iii) Biotechnology Cluster:

! Healthcare
! Industrial

iv) Industry Cluster:

! Advanced Materials
! Advanced Manufacturing
! Nanotechnology
! Alternative Energy
! Radiation Technology
! Waste to Wealth
! Processing Technology
! Engineering Development
! Environment

3.6 Approval Criteria

Approval of projects takes into consideration, among others, the

following criteria:

i) Applicants must submit proposals leading to

commercialisation of innovative products, processes and
services;

ii) Applicants must belong to any of the target groups listed in

paragraph 3.2 of this guideline;

iii) Person(s) involved in project should have suitable qualification

or experience;

iv) Projects must focus on either one of the technology cluster

identified;

v) Applicants (for individual applicants only) must identify one key

person that MOSTI may contact as referee for your
application. Please ensure that you have the consent of this
individual to be listed as your application referee. The referee
must be aware of the details of your application;

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 vi) Applicants must show proof of financial capability to finance
the portion not funded by EIF;

vii) Projects must contribute economic benefits to Malaysian

economy; and

viii) Fulfill other conditions stipulated under the guidelines and

policies of the InnoFund.

4.0 COMMUNITY INNOVATION FUND (CIF)

4.1 Eligibility

To be eligible for CIF:

i) Applicants must be a Malaysian community group; and

ii) The proposal must contain innovative elements leading to the

development of products / services / processes that improve
societal well-being.

4.2 Target Group

Community Groups (such as Non Governmental Organisations,

Community Associations, Village Development and Security
Committees (JKKK))

4.3 Quantum of Funding

The quantum of funding approved under CIF will be determined on

the merits of each application listed below:

Target Group Quantum

Community group Up to RM500,000

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4.4 Scope of Funding

The eligible expenditure are:

i) Consumables / materials;

ii) Equipment (not more than 40% of total project cost);

iii) Expenditure for services (consultancy);

iv) Product documentation; and

v) Demonstration application (including samples, fees and

documentation for participation in exhibitions).

4.5 Technology Clusters

There is no technology clusters for CIF. However, the emphasis

is innovation that improves societal well-being.

4.6 Approval Criteria

Approval of projects takes into consideration, among others, the

following criteria:

i) Applicants must submit proposals which clearly projects

social benefit;

ii) Applicants must belong to any of the target groups listed in

paragraph 4.2 of this guideline;

iii) Proposed project must contain mechanisms of sustainability

and diffusion;

iv) Fulfill other conditions stipulated under the guidelines and

policies of the InnoFund; and

v) Applicants must identify one key person that MOSTI may

contact as referee for your application. Please ensure that
you have the consent of this individual to be listed as your
application referee. The referee must be aware of the
details of your application.

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5.0 PROJECT DURATION

Maximum Duration
Category
(months)
Small Enterprise 18
Individual / Sole Proprietor,
12
Micro Enterprise

Community Groups 18

6.0 AGREEMENT

6.1 An InnoFund Agreement will be signed between the Government

and successful applicants.

7.0 APPLICATION PROCESS AND PROCEDURE

7.1 EIF

Applicants must submit their proposals based on cycles (twice a

year). The Request for Proposal (RFP) will be announced by
MOSTI. Applicants can browse http://www.mosti.gov.my for further
information.

Applicants will be notified of their application result within 60

working days from the closing date of each cycle upon receipt of
complete application.

Activity Cycle 1 Cycle 2

Submission of Proposal 15 Apr– 15 June 2006 1 Sept – 30 Sept 2006

7.2 CIF

Application for CIF is open throughout the year. Applicants will be

notified of their application result within 60 working days upon
receipt of complete proposals.
.

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8.0 LOCATION OF PROPOSED PROJECT

8.1 Approved proposals under EIF and CIF must be undertaken in

Malaysia.

9.0 ENQUIRY AND SUBMISSION

9.1 All inquiries pertaining to InnoFund should be directed to:

Innovation Unit,
Science, Technology and Innovation Division,
Ministry of Science, Technology and Innovation (MOSTI)
Block C5, Parcel C
62662 PUTRAJAYA
Tel: 03 - 8885 8153 / 8841/ 8050 /8750/ 8843(Helpdesk)
Fax: 03 - 8888 9473
e-mail: innofund@mosti.gov.my

All applications can be submitted through e-mail or by post to

the above address.

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