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National Innovation Model 22 April 2008 MOSTI Looking Back, Moving Forward Innovation Economy Production Based Economy Agriculture Based Economy Basic Input Factors Basic Input Factors Basic Input Factors Technology Market Risk Capital Infrastructure Capital Labour Land Labour © MIGHT 2008 Proprietary & Confidential Page 2 Innovation Model for Wealth Creation & Societal Well Being Malaysia National Innovation Model 3 - 5 years Acquisition GDP Growth and employment Market Driven Innovation Technology Market Identified Malaysia’s Strategic Positioning Risk Capital and Technology Driven Innovation Science (Basic Research) Science Grant 10 – 15 years © MIGHT 2008 Proprietary & Confidential Technology Technology Grant Application Market niche Market (to be Identified) Value added products and services Risk Capital 3 - 5 years Source: MOSTI Page 3 Framework for Technology Acquisition in Government Procurement KEY SECTORS (TECHNOLOGY INTENSIVE) • Aerospace • Automotive • Health • Education TECH. DEV. POLICIES & GUIDELINES • S&T Policy • Industrial & Tech. Policies • Industrial Master Plan • Blueprint ( various) TECHNOLOGY NEEDS Platform Technologies • System Integration • Advanced Material • Adv Manufacturing • Molecular • Nanotechnology • Photonic • etc • • • • • Agriculture Defense Plan Marine Transportation ICT TARGET PROCUREMENT STAKEHOLDERS •Companies •EPU •Universities •Treasury •Research Institutions TDA •Other Ministries •others • Transportation • Resource Based • Agro-Based • Machinery Equipment • Chemicals • etc. DEV. & BUDGET PLANS • Malaysia Plan • Outline Perspective Plan • Annual Budget Administrating & Implementing Ministry ACADEMIA © MIGHT 2008 Proprietary & Confidential R&D INSTITUTION BENEFICIARIES OEMs Page 4 Example: Market Driven Innovation for Technology Development Agency GDP Growth and employment Acquisition Malaysia’s Technology Market Identified Strategic Positioning Value added products and services Risk Capital Market Opportunity Malaysia’s entry into the global supply chain of tantalum powder production A380 Engine Purchase Offset Programme Acquisition © MIGHT 2008 Proprietary & Confidential Page 5 Example: Market Driven Innovation for Technology Development Agency GDP Growth and employment Acquisition Malaysia’s Technology Market Identified Strategic Positioning Value added products and services Risk Capital Market Opportunity Market access for supply of locally-made aircraft parts & components worth Euro 195 million A400M Aircraft Participation Programme Acquisition © MIGHT 2008 Proprietary & Confidential Page 6 Some Points to Note In developing the defence sector, technology acquisition must.. • Provide opportunities for local industry to participate as direct or in-direct suppliers; • Encourage foreign SMEs to collaborate with local SMEs; • Maximize offsets for technology acquisition and industrial enhancement; • Emphasis the logistics system that is capable of supporting weapon system throughout its entire life; and • Ensure all aspects of in-service support are taken into account early © MIGHT 2008 Proprietary & Confidential Page 7 www.might.org.my © MIGHT 2008 Proprietary & Confidential Page 8 © MIGHT 2008 Proprietary & Confidential Page 9