Download Innovation Landscape in Singapore Article | January 2014

Innovation Landscape in Singapore
Article | January 2014
Samantha van der Drift
Singapore went through a tremendous economic transformation in the past 50 years. In the 1960’s, right
after gaining independence from the United Kingdom in 1963 and subsequently Malaysia in 1965, the
employment rates were low. Singapore had no natural resources and a low education rate. Therefore
other solutions had to be found to gain revenues and stimulate economic growth. The Economic
Development Board (EDB) was set up 1961 to set out and execute economic strategies to reach these
goals. Their main strategy to provide jobs for the population was to attract foreign companies. The EDB
was extremely successful and Singapore’s economy became a labour-intensive economy. In the following
years the electronics sector (1970s) and biomedical sectors (1990s) became key industries for Singapore.
This raised the skill level of the employees and spurred economic growth. Singapore continued this trend
and now strives to develop into a knowledge economy. The aim is to achieve a yearly productivity growth
of 2 to 3 percent until 2020 by raising skills and efficiency. This will increase wages and improve the
economic situation of lower income residents. Therefore, incentives are geared towards companies to
innovate, invest in their people and create high value jobs.
Figure 1: Singapore’s economy (Source: NRF)
Innov atio n p ol ic y an d f i nan c ing
The Research, Innovation and Enterprise Council (RIEC) was set up in 2006, to support the
transformation into a knowledge economy. The RIEC is chaired by the Prime Minister and gives advice to
the Singapore Cabinet on national research and innovation policies and strategies. The National Research
Foundation (NRF) is the operational division of the RIEC. They develop and coordinate national policies
related to research and innovation. Proposals and plans, developed by NRF, are reviewed by the
Scientific Advisory Board (SAB). SAB consists of international technology experts and it gives advice to
NRF on new areas of research and management of R&D activities.
The RIEC develops national R&D master plans and reviews these strategies every five years. Public R&D
investments have risen from 2 billion SGD for the first five-year national R&D program in 1991 to 16.1
billion SGD for the master plan spanning from 2011 to 2015. The most recent national R&D program is the
Research Innovation Enterprise 2015 (RIE 2015). The RIE 2015 has a strong focus on multidisciplinary
and public-private research. Singapore wants to improve the transformation from innovation to enterprise.
They aim to achieve this by providing funds as part of RIE2015. Such as, an Industry Alignment Fund of
1.35 billion SGD to support industry collaborations and a 1 billion SGD Innovation and Enterprise Fund to
stimulate researchers to commercialize their innovations.
A significant part of public expenditure goes to R&D on high tech systems and materials.Electronics (also
includes media and Infocomm R&D), precision and transport engineering alone received more than 35%
of the total public R&D funding in 2011. Biomedical science is another key research area for Singapore
and it received 33.4% of funding. This aligns with the research priorities of NRF, which are Biomedical
Sciences, Interactive & Digital Media en Physical Sciences & Engineering. Table 1 gives an overview of
research areas, which specifically relate to the application of high tech systems and materials.
Table 1: NRF research priorities
Biomedical Sciences
Interactive & Digital Media
Biomedical Technology
Education
Animation
Games & Effects
On-the-Move Technologies
Physical Sciences & Engineering
Urban solutions & Sustainability
Security & Emerging Technologies
Advanced Materials & Manufacturing
Advanced Systems & Engineering
Figure 2: Public expenditure on R&D (source: A*STAR, 2011)
P riv ate R &D
Even though public R&D expenditure is significant, most of the R&D expenditure in Singapore is done at
corporate labs. Private R&D expenditure in 2012 was 4.4 billion SGD, which represents 1.3% of GDP. In
comparison, public R&D expenditure in 2012 was 2.8 billion. Singapore’s stable economic and political
climate and its reputation for well-developed intellectual property regulations make it an attractive place for
many companies to start a regional R&D lab. In addition, the government provides significant tax benefits
for companies which set up their headquarters or perform research activities in Singapore
R& D P er fo rm er s
Agency for Science, Technology and Research (A*STAR)
A*STAR is the largest public R&D organization and is funded by the Ministry of Trade and Industry.
A*STAR is established with the aim to strengthen knowledge development in Singapore, and to support
innovation through collaboration with industrial partners. A*STAR consists of 14 research institutes, which
focus on biomedical sciences and physical sciences & engineering.
NRF Research Centres of Excellence (RCE) and NRF Campus for Research Excellence and
Technological Enterprise (CREATE)
NRF established Research Centres of Excellence (RCE), the Campus for Research Excellence and
Technological Enterprise (CREATE) to guide knowledge development in Singapore. RCE’s are located at
local universities. They focus on fundamental research. CREATE houses several subdivisions of leading
international universities such as the Massachusetts Institute of Technology (MIT) en the University of
California, Berkeley. These institutes perform applied research and are concerned with finding solutions
for urban challenges in Singapore.
Table 2: NRF Research Centres of Excellence
Research Centres of Excellence
Earth Observatory of Singapore (NTU)
Centre for Quantum Technologies (NUS)
Cancer Science Institute of Singapore (NUS)
Mechanobiology Institute (NUS)
Singapore Centre on Environmental Life Sciences (NTU, NUS)
Established
2008
2007
2008
2009
2011
Universities and Polytechnics
There are five local universities in Singapore: the National University of Singapore (NUS), the Nanyang
Technological University (NTU), Singapore Management University (SMU), the Singapore University of
Technology and Design (SUTD) and the Singapore Institute of Technology (SIT). Singaporean universities
are positioned high on global rankings; both NUS and NTU were in the top 100 of the 2013 Times Higher
Education World Rankings (26 and 76 respectively). Research also takes place at polytechnics.
Polytechnics are more industry-oriented and comparable to MBO-level schools in the Netherlands.
Corporate Labs
R&D also takes place at corporate labs and often in collaboration with universities or other knowledge
institutes. Examples of joint research labs include the BMW Future Mobility Lab (with NTU) and the Rolls
Roys Advanced Technology Center (with A*STAR, NTU and NUS).
Com me r ci al iz at io n
SPRING
SPRING, part of the Ministry of Trade and Industry, is responsible for making Singaporean companies
more competitive. To do so, SPRING helps enterprises with financing, commercialization of innovation and
access to markets. Examples of commercialization programs include the SPRING Start-up Enterprise
Development Scheme, which provides co-financing options for innovative start-ups. And the Technological
Enterprise Commercialization Scheme, which provides R&D funding. SPRING also established various
Centres of Innovations, where collaborative research takes place between industry and polytechnics or
research institutes.
Table 3: Centres of Innovations
Centres of Innovation (COI)
COI for Electronics
COI for Supply Chain Management
Environment and Water Technology COI
Food Innovation Resource Centre
Marine & Offshore Technology COI
Precision Engineering COI
Polytechnic
Nanyang Polytechnic
Republic Polytechnic
Ngee Ann Polytechnic
Singapore Polytechnic
Ngee Ann Polytechnic
SIMTech
International Enterprise Singapore (IE Singapore)
IE Singapore is responsible for promoting the overseas growth of Singapore-based enterprise and
international trade. They advise Singaporean companies on manpower development and international
market access and provide grants for overseas activities.
G en e ra l t r end s in Sin gapo r e
Ageing Society
In 2030 a quarter of the population in Singapore will be older than 65. The high life expectancy (84 years)
and the low birth rate (1.2 children per female) will cause an age shift. To maintain a sufficiently large work
force, the Singaporean government actively stimulates population growth. Their vision is to have between
6.5 and 6.9 million people in Singapore in 2030. This means a population growth of more than one million
people in the next 17 years. The government wants to achieve this through marriage and childhood
packages, which give financial benefits to young couples. Another measure is the controlled acceptance
of immigrants. Even though Singapore continues to accept immigrants, there is a lot of emphasis on
supporting the local population. The aim of the government is to move Singaporeans in higher qualified
jobs, so that the economic situation and the skill level of its citizens improve. Singapore considers the new
immigrants as part of this process. Their role is to provide knowledge and experience in high management
positions or to support families and Singapore through jobs in construction and household aid. The
government further tries to improve the overall welfare of its citizens by increasingly including them in the
decision making process. Through open consultations on strategic master plans, the local population can
express their needs and wishes and give feedback on government policies.
Liveability
Singapore is currently already one of the most densely populated countries in the world with a surface
2
area of 710 km and more than five million inhabitants. Housing, industry and infrastructure are all located
close together, which make efficient urban planning a necessity. Singapore places a lot of emphasis on
maintaining the liveability of the city. Historically, this has always been a focus area of the government,
also to aid in the attraction of multinationals. The city needed to be a place where people feel comfortable
to live, both locals and expats. With the expected increase in population challenges will arise to maintain
the high liveability standards. Singapore therefore will strongly focus on finding solutions, which can keep
the city clean, safe and attractive.
Smart City
Singapore wants to become the number one in the world in ‘harnessing infocomm to add value to
economy and society’. The government considers the application of ICT, as a means to increase its global
competitiveness and improve the city’s liveability. There is therefore much attention for technologies,
which can aid in the establishment and application of infocomm platforms and transform Singapore into a
smart city. The government specifically focuses on three emerging trends; cloud computing, business
analytics and green ICT. These three infocomm technologies can create a competitive advantage for
businesses in Singapore, but they also aid in creating a more sustainable city. Smart grids for example
can reduce energy usage in buildings and data analytics can reduce emissions by optimizing traffic flows.
Another aspect of the smart city is security. More connectivity means that more security will be needed to
keep data safe and protected.
Ar e a s of Int e r est f o r t he Dut ch HT SM s e ct or
Medical Technology & Telehealth
Singapore is already a big medical hub with 610,000 healthcare tourists in 2012 and with a predicted
annual growth of 8.3 percent through 2018. Together with the ageing society, this will lead to a large
healthcare demand and the medical sector is therefore one of the key innovation areas for Singapore. In
2000 the government launched the Biomedical Sciences Initiative which led to the development of the
Biopolis R&D hub. More than 2,500 scientists work at Biopolis for either the Agency for Science and
Technology (A*STAR) or corporate research institutes. Traditionally Singapore has been focusing on the
pharmaceutical and biologics industry but currently medical technology, personal care and food and
nutrition have been identified as the new growth areas. One of the technologies which can benefit from
this growth is 3-D printing (the medical and dental sectors are globally the third largest market for 3-D
applications). The Singaporean government set up a 500 million SGD fund for development of advanced
manufacturing capabilities which can be used for 3-D med-tech printing. Research on 3-D printing is
already taking place at SUTD and NTU; these universities set up a joint printing lab. Tele-health is another
area of healthcare innovation. In the Singaporean culture elderly homes are not widely accepted yet and
seniors prefer to live with their families. With the younger generation moving into higher skilled jobs and
being less available for daily care taking, telehealth technology will be increasingly in demand. Sensors
and communication devices can make it possible for care takers to continue their outside activities while
staying informed about their elderly relatives.
Aerospace
Singapore is an important logistics hub for South East Asia, through its airport and seaport. The airport is
significant in size with 51 million passengers in 2012 (similar to Schiphol Amsterdam Airport). And it is
expanding with a fourth terminal in 2017 and a fifth terminal in 2020. This expansion provides direct
opportunities for innovative security technologies and smart transportation methods. There is also a large
maintenance, repair and overhaul industry, which further strengthens Singapore’s hub function. That
makes many aerospace and aviation companies have their regional headquarters and R&D departments
in Singapore. To stimulate innovation, R&D often takes place in collaboration with local universities and
knowledge institutes. Research areas include 3-D printing (SIMTech), self-assembling structures (SUTD
and US Air Force), manufacturing and repair technologies (Rolls Roys and NTU) and nanosatellites
(NUS).
Urban Systems
Singapore is the size of the Dutch Noordoostpolder and has a population density of 7422 inhabitants per
2
km . This is 1.5 times higher than the city of Amsterdam. In this limited space, there needs to be room for
housing, recreation, industry and infrastructure. The expected growth in population will not only increase
the population density, it will also increase the need for transportation, energy and housing. Singapore is
actively looking for technological solutions to keep the city liveable, despite the increasing pressure on
these urban systems. Not only does Singapore want to solve their own urban challenges, they also want
to be a global leader in urban system development. They therefore heavily invest in knowledge
development, so that they can sell their expertise to other countries in South East Asia. The urban
systems theme therefore provides ample opportunities for the Dutch High Tech sector, both in the direct
application of new technologies in Singapore and knowledge development for application in South East
Asia.
Ref e re nc e s
 Agency for Science, Technology and Research, www.a-star.edu.sg (accessed 29 January 2014)
 DesignSingapore Council, Dsg-II Strategic Blueprint of the DesignSingapore Initiative (published
2009)
 Economic Strategies Committee, Report of the Economic Strategies Committee (published February
2010)
 Infocomm Development Authority Singapore, Factsheet on National Cyber Security Masterplan 2018
(published 2013)
 Infocomm Development Authority Singapore, Realising the iN2015 vision (published 2010)
 International Enterprise Singapore, www.iesingapore.gov.sg (accessed 29 January 2014)
 Inter-Ministerial Committee on Sustainable Development, A lively and liveable Singapore – Strategies
for sustainable growth (published 2009)
 Ministry of National Development, A High Quality Living Environment for All Singaporeans; land use
plan to support Singapore’s future population (published January 2013)
 Ministry of Trade and Industry, Research, Innovation, Enterprise 2015 (published 2011)
 Nanyang Technological University, www.ntu.edu.sg (accessed 29 January 2014)
 National Climate Change Secretariat, Climate Change & Singapore: Challenges, Opportunities,
Partnerships (published 2012)
 National Population and Talent Division Prime Minister’s Office, A sustainable population for a
dynamic Singapore – Population White Paper (published January 2013)
 National Research Foundation, www.nrf.gov.sg (accessed 29 January 2014)
 National University of Singapore, www.nus.edu.sg (accessed 29 January 2014)
 Singapore Economic Development Board, www.edb.gov.sg (accessed 29 January 2014)
 Spring Singapore, www.spring.gov.sg (accessed 29 January 2014)
 Urban Redevelopment Authority, Designing our City; Planning for a sustainable Singapore (published
2013)
More information?
For more information please contact the Netherlands Office for Science & Technology in Singapore.
Email: [email protected] Website: www.ianetwerk.nl