framework for science, technology and innovation policy

8/3/2019 Framework for Science, Technology and Innovation Policy

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FRAMEWORK FOR SCIENCE, TECHNOLOGY

AND INNOVATION POLICY

ABSTRACT

In assessing the needs of industry in policy development, it is essential to look at the policystructure in its entirety. It is to be noted that policy considerations have evolved overtime from

science policy to S&T policy to STI policy.

STI policy is all inclusive and intended to drive research, development and commercialization

(R,D&C) which is relevant in the context of the Innovation Economy.

The Innovation Economy is dependent on the Total National Capacity (TNC) in STI which

encompasses the government, the scientific community, industry and the community at large.

The involvement of industry in policy development and implementation is therefore crucial.

Without industrys buy-in, policy objectives cannot be realized.

A number of frameworks, based on Malaysias experience, is presented as generic templates

which can be the basis for policy responses in different national situations.


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SCOPE OF POLICY OVER TIME

Science Policy doing good science

Science and Technology Policy close relationship between science and

technology

Science Technology and Innovation Policy wider scope, more integrated;

inclusive of all stakeholders

STI POILICY IN THE INNOVATION ECONOMY


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THE INNOVATION ECONOMY

The Essence of the Innovation Economy is growth through economic

restructuring and diversification into production of manufactured goods and

other modern goods and services with high value added.

Innovation is the driver.


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AREAS OF INNOVATION

Science & Technology

Governance policies and implementation

Business practices

Geo-politics

Socio-economic issues Strategies & alliances

TECHNOLOGICAL INNOVATION Vs SOFT INNOVATION


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SOFT INNOVATION

Changes in aesthetics more than changes in technology

i. Changes in products in the creative industryii. Aesthetic innovation in goods and services primarily functional in nature

Soft innovations significant if economically important

Soft Innovation, NESTA, UK

Research Report July 2009

MASS INNOVATION GRASSROOTS INNOVATION

NOW EVERYONE CAN INNOVATE !


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INTER-RELATION BETWEEN SOFT

INNOVATION AND TECHNOLOGICALINNOVATION

TECHNOLOGY-BASED BUSINESS

BUSINESS DRIVER TECHNOLOGY PROVIDER BUSINESS ENABLER

Sales and Marketing Products Work Force Promotion,

Advertisement

Devices Business Processes

After sales services Accessories Cost cutting andproductivity increases

Customer loyalty Financialmanagement

SOFT INNOVATION TECHNOLOGICAL

INNOVATION

SOFT INNOVATION

Soft innovation often possible only because of

Technological Innovation


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PRIMARY POLICY CONSIDERATIONSFOR THE INNOVATION ECONOMY

Total National Capacity in Science, Technology and Innovation

Integrated Human Capital Development Status of STI in Industry Industrys appetite for STI

Information Flow And STI Advisory System


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TOTAL NATIONAL CAPACITY IN STI

Economic growth under NEM to be driven by Innovation Economy

Innovation Economy dependent on Total National Capacity (TNC) in STI :

o A scientific community able to contribute to and draw from the global pool of scientific

and technological knowledge.o A government committed to providing a comprehensive STI Infrastructure (soft and

hard: institutions, funds, processes, etc)

o A private sector capable of creating wealth through application of technology and

innovation in all sectors of the economy.o A society imbibed with a culture of creativity, innovativeness and entrepreneurship.


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IMPLICATION OF TOTAL NATIONAL

CAPACITY (TNC) in STI

Doing good Science is not good enough.

Good Science must translate into innovative technologies at the marketplace

TNC in STI therefore requires an STI Policy encompassing

Capacity to develop (R&D) and to acquire technology (technology transfer)

Capacity to apply and utilize technology and innovation

Management of the interface between the two

(in both Government and Industry)

The above constitute the Core Elements of STI Policy for the InnovationEconomy.


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CORE ELEMENTS OF STI POLICY

Technology Generation

and Acquisition

Technology Utilization

And Management

(Interface)


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STI POLICY FRAMEWORK

Enhancement of science advisory and consultative system and processes.

Enhancement of capacity to generate and acquire STI.

Enhancement of capacity to evaluate, acquire, utilize and manage STI.

Development of human capital.

Creation of the right environment (Ecosystem) for the Innovation Economy.

(all the above apply to both government and industry)


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THE ECOSYSTEM OFINNOVATION ECONOMY

K-Generation

and Acquisition

K-Utilization and

Management

Human Capital Development Capacity and capability building

Entrepreneur development

Smart Partnership Practices

K-IntensiveGovernance

(Public/Privatesectors)

Culture of Creativity andInnovation

Science Ethics Practices


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THE INNOVATION ECOSYSTEM

MUST BE SUPPORTED BY:

Creativity Ecosystem

Innovation Ecosystem

Entrepreneurship Ecosystem

Commercialization Ecosystem

AND

Smart Partnership Practices

Science Ethics Practices

Human Capital Development


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SMART PARTNERSHIP

Partnering based on respect, trust, transparency and tolerance.

Long-term, with evolving common objectives; goes beyond strategic alliance. Cooperation to succeed vs. cooperation to compete.

Outcome: prosper thy neighbor; win-win, equitable; balance between business and

social benefits.

Smart Partnership framework - applicable in the specific context of Total National

STI capacity for the Innovation Economy.

Smart Partnership - preferred framework for the conduct of business and Government

nationally and internationally.


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SCIENCE ETHICS PRACTICES

Principles according to which scientific activity should be conducted and the mechanisms by

which conformity to such principles is promoted, fostered and ensured

COMEST, May 09

UNESCO

1974 Recommendations on Status of Scientific Research:

Integration of science ethics in science policy

1999 Declaration on Science and the Uses of Scientific Knowledge

Ethics to be included in all Science teaching at universities


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Is the holistic approach to the development of the full human potential.

The objective is to create human capital i.e. productive assets in the

form of human competencies or a portfolio of different skills and

assets required by both industry and government to create a nation of

high competitiveness in the knowledge society.

HUMAN CAPITAL DEVELOPMENT


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Human Capital development encompasses the practices and

the environment to develop: intellectual capital, skills capital,

social capital, entrepreneurial capital, psychological capital andspiritual capital within individuals.



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Intellectual Capital Nurtured through formal and informal education logical, strategicthought processes.

Skills Capital Codified and tacit knowledge; technical skills from training or acquired throughexperience.

Social Capital Social skills, communication, cooperativeness, networking, smart partnershipprinciples enhances social capital.

Entrepreneurial Capital Creativity, innovativeness and entrepreneurship.

Psychological Capital Commitment, passion, dedication, confidence, belief in self (MalaysiaBoleh).

Spiritual Capital- Ethical values and principles.- Right and wrong.- Smart partnership ethos.

BY DESIGN AND/OR BY DIFFUSION



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The product of human capital development is a

knowledge-worker or knowledge manager parexcellence.



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A knowledge worker is more than just ICT literate. A knowledge worker is

characterized by:

Ability to provide solutions, working alone or in a team

Possession of a core competency which is enhanced by mastery of ICT

Being creative, innovative and entrepreneurial

High motivation; adaptable and open to learning, including self-learning andre-learning and prepared to master new skills

Being a risk taker, able to work boundaryless and borderless

Work ethics based on Smart Partnership values (respect, trust, tolerance and

transparency) and science ethics (professional, social, environmental, moral

and ethical obligations)



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A knowledge-manager possesses or is capable of developing the

following assets:

General management human capital

Strategic human capital

Domain-specific human capital (industry or public sector specific

expertise)

Relationship human capital

Company/institution-specific human capital



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Home: The environment at home must be conducive to the learning process at anearly age, encourage inquisitiveness and creativity

School: New approach to learning process, teacher-pupil relationship,new subjects that promote creativity , innovativeness andentrepreneurship, assessment system that encouragesthinking out of the box.

Development of social skills, racial mix as an asset, communication skills:debate, negotiations, consultation; smart partnership ethos.

University: As above plus:-

Fostering a culture of life-long learning, unlearning and relearning;commitment to R&D.

Workplace: Open, flexible system that encourages team work, rewardscreativity and entrepreneurship; wellness culture

PROCESS OF HUMAN CAPITAL

DEVELOPMENT


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STI POLICY

MALAYSIAS EXPERIENCE

Rukun Negara 5 years Development Plans starting 5th Plan (1986 1990)

National Science and Technology Policy I (1986) and Policy II (2003)

Action Plan for Industrial Technology Development 1990

Vision 2020 February 1991

Industrial Master Plan I (1986 1995); II (1996 2005); III (2006 2020)

K-Economy Master Plan 2002

Sub-sectors IT, Biotechnology, Aerospace, etc

Various grant and support schemes to promote R&D and Commercialization

The New Economic Model (NEM) - 2010


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ASSESSMENT OF OUTCOME - I

Negative press reports and analysis

Failure to migrate to the Innovation Economy?


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STATUS OF STI IN INDUSTRY

The Economist March 1st 2008

The tigers that lost their roar

--- after all this time the regions five maineconomics Indonesia, Malaysia,

Philippines, Singapore and Thailand are

still notable for the near absence of

companies that could truly be called

world-class.

--- the regions business scene, . . .,

remains dominated by old-fashioned,

mediocre, sprawling conglomerates,

run at the whims of aging patriarchalowners.

if they need technology, they buy it from

abroad . . . . . The region has no

indigenous, large-scale companies

producing world class products and

services

whereas the export led growth of South

Korea and Taiwan comes mainly from

indigenous firms making globally

competitive goods with their own

technology much of South East Asiashigh value exports are made by foreign

companies.

These companies dont have strategies,

they do deals.


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Dr. Mahani Zainal Abidin ISIS

New model needed to spur economy

NST 2 April 2009

. . . . The economic gap between

Malaysia and countries like Taiwan,

Hong Kong and Singapore . . . .is now

widening instead. We are also losing

out to them in terms of per-capita

income growth, technological capability

and human capital development.

. . .Malaysia remains a low-wage, low-skilland resource-based economy.

Malaysia is in danger of not meeting its owntarget of being a developed country by

2020. There is an urgent need for us to

address critical economic crisis,

particularly human capital, technology

and innovation and our approaches to it .

. . . .

We should continue to invest in technology

driven innovation by supporting researchand development works. At the same

time Malaysia should acquire

technologies and improve them to meet

market demand


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Anna Ting Positioning Malaysia

for long term sustainable

growth - The Edge Malaysia, 6th

April 2009

- Malaysia is once again an economy

in transition. In the past 50 or more

years, Malaysia has successfullytransformed from a low-income

economy to a middle-income one

where its growth base was moved

from primary factors of production

such as primary commodities andunskilled labor, to that of imported

technology mainly through foreign

direct investment.

. . .toughest transitional phase for any

economy moving to develop into a high

income economy, which involves

becoming technology generating

instead of technology importing where

innovation is the key.

. . . .in fostering a high rate of innovation and

skills improvement the government must

focus on providing top quality educationwith emphasis in science and mathematics

. . . . .


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Quah Boon Huat (MIER) :

Deindustrialiting for the wrong reasons?

Starbiz , 20 April 2009

- - - - - according to data from the

Economic Report published by the

Finance Ministry, the manufacturing

sectors share of GDP had increased

from 26.9% in 1990 to 32.3% in 2000,

but fell to 30.1% in 2007

- - - - - the growth rate of its share (the

manufacturing sector) of total

employment has moderatedconsiderably. It only managed to

increase its share from 2000 to 2007 by

a mere 1.3 percentage points to 28.9%

- - - - one could conclude - - - the

manufacturing sector appears to be

losing out as a crucial component of

the economy.

- - - - the results do suggest that the

manufacturing sector appears to be

losing its shine and deindustrialization

seems to be in the cards in Malaysia -

- - - (where deindustrialization isdefined) as - - - a steady decline in

the - - - sectors share of

employment.


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Deindustrialization can be viewed as the norm in

successful economic growth. As per capita

income rises during the course of economic

development the share of employment in

manufacturing rises at the expense of agricultureuntil a relatively high level of development is

achieved.

Beyond a certain threshold of per capita

income, however, the share of services in

employment starts to rise at the expense of

manufacturing - - - [due to] (i) higher productivity

growth rates - - - and (ii) a systematic change in

consumption patterns. This form ofdeindustrialization is considered positive

because of its associated with rising real

incomes and full employment not because of

failure of the manufacturing sector.

- - - negative deindustrialization can

be caused by - - - like high labour

costs and failure or inability of firms

to respond to changing market

conditions. It results in a slow-

down in manufacturing output and

productivity and prevents nations

from achieving their full economic

potential.


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Malaysias manufacturing sector is being

affected by - - - rising production costs

arising from tightening of labour market

and cheap exports (from China and

Vietnam). The sector has failed to

make the transition to higher value

added activities.

The problems - - - can be traced back to

a lack of industrial deepening - - - - -

What needs to be done now is not the

creation of more organization, but

effective implementation of an appraisal,

reward and penalty system to improve

coordination of activities among the

relevant institutions to ensure industrial

deepening.


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ASSESSMENT OF OUTCOME - II

Deindustrialization lack of industrial deepening?

What happens to manufacturing ++?


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INDUSTRIAL MASTERPLAN II


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ASSESSMENT OF OUTCOME - III

Policy Failure? Implementation Failure? Coordination Failure?

What is the reality? partial success?


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Tim Hartford Financial Time Magazine

July 4/5 2009

Why getting complicated increases the

wealth of nations.

one of the defining characteristics of the

modern economy is that its awfully

complicated.

even a fairly humble product such as a

shirt might incorporate cotton from West

Africa, oil from Indonesia to make the

polyester in the button (manufactured in

China) and designs sketched out by anItalian using an American computer

software.

. . . . There are probably 10 billiondistinct products and services

available in a modern economic

environment such as London, Tokyo

and New York.


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one obvious measure of complexity is how

many types of products a country exports

in significant quantities . . . .

Exports are a meaningful indicator

because if you export a product it means

someone else is willing to pay for it

A further measure of complexity is

whether a countrys export are

uncommon (many countries export T-shirts, few aircraft parts.

Malaysia and Pakistan seem, at first glance,

equally complex couple, each exporting 104

product types. But many Malaysian exports

are also exported by mighty Japan, where

Pakistans exports have very little in

common with those of Japan. In generalMalaysia tends to export some of the

products that very complex, diversified

countries export suggesting that it has a

more complex economy than Pakistan.

. . . . The top six most complex economies:

Japan, Germany, Sweden, UK, Finland and

the USA. Malawi, Cameroon and Western

Samoa bring up the rear.

. . . It seems that economies that are morecomplex than their level of income would

suggest, have a tendency to catch up with a

spurt of fast growth.

INFORMATION FLOW AND THE STI


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INFORMATION FLOW AND THE STI

ADVISORY SYSTEM In the context of Innovation Economy holistic approach to policy formulation is important; not separating

STI Development policy from National Development policy or Industrial Development or any other sectoral

policies.

The concept of Policy for STI and STI for Policy or Development of STI and STI for Development becomes

evermore important and information flow between sectoral systems must be facilitated.

Information flow between all stakeholders especially between government, technology generators and

private sectors to get buy-in.

An integrated and inclusive STI Advisory System is crucial.

Moving the STI agenda requires Champions in public and private sectors and champions require advice.

Advisory mechanism must have legitimacy, authority, capacity and linkages to deliverobjective,

neutral and timely advice.

PROPOSAL FOR POLICY


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PROPOSAL FOR POLICY

RESPONSES

1. Intensifying the capacity for knowledge generation and acquisition

2. Increasing knowledge intensity in traditional economic sector

3. Increasing productivity, innovative capacity and competitiveness in manufacturingand k-economic sectors

4. Education and human capital development

5. Intensifying knowledge content in governance

6. Enhancement of Entrepreneur Development

7. Innovative Financing mechanism and support system for commercialization oftechnology and innovation

8. Creating a national culture of creativity and innovation

9. Enhancing knowledge management

10. Promoting science ethics and smart partnership ethos and practices11. Securing private Sector Buy-In

12. Enhancing the STI Advisory System

MEASURING ACHIEVEMENT


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MEASURING ACHIEVEMENT

PUBLIC AND PRIVATE SECTORTechnology Management Best Practice Framework

The technology management best practice framework, developed and promoted by CPTM, may be used as a template for

policy formulation and implementation strategies. This framework consists of the following:

1. Political Commitment

2. Policy Integration

3. S&T Advisory System

4. S&T Development Planning and Coordination

5. S&T Infrastructure

6. Funding & Management of R&D

7. Mechanism for Commercialization of Research & Technology

8. Integrated Human Resource Development

9. Mechanism for S&T Enculturisation

10. Smart Partnership and Science Ethics Principles and Practices

MOVING THE STI AGENDA


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MOVING THE STI AGENDA THE STI HUMAN RESOURCE PYRAMID

CHAMPIONSCHAMPIONS

POPULARISERSPOPULARISERS

PLANNERSPLANNERS

MANAGERSMANAGERS

EDUCATORSEDUCATORS

PRACTITIONERSPRACTITIONERS

ADVISORSADVISORS

SCIENCE IS TOO IMPORTANT TO BE LEFT TO SCIENTISTS AND TECHNOLOGISTS ALONE !

-Entrepreneurs-Industry leaders

Science & technologyprofessionals

Researchers

UNESCOS NEW INITIATIVE


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UNESCOS NEW INITIATIVE

FOR STI DEVELOPMENT

ISTIC - International Science, Technology and Innovation Centre for

South-South Corporation

(launched 22nd May, 2008)- UNESCO MALAYSIAN GOVERNMENT (MOSTI)

ISTIC PRIORITY ACTION


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ISTIC PRIORITY ACTION

PROGRAMME

STI policy for development

Capacity building

Collaborative initiatives with existing STI Network

WEHAB (Water, Energy, Health, Agriculture and Biodiversity)

New Technologies

STI POLICY FOR DEVELOPMENT


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STI POLICY FOR DEVELOPMENT

STI Policy Consultative Unit (SPCU)

To assist UNESCO member countries in developing capacity to formulate and

implement a sound STI policy in support of national development objectives.

SPCUs approach to STI Policy Development is based on Total National Capacity

in STI.

Template for policy formulation and implementation is CPTMs Technology

Management Best Practice framework.

PHASES OF ENGAGEMENT


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PHASES OF ENGAGEMENT

1. Sensitization, commitment and preliminary assessment

2. Review priorities of needs in government and industry

3. Status review of priority areas

4. Development of Action Plan

ISTIC Team = National Core Team

National Core Team :

(responsible for final formulation of STI Policy and implementation programs)

Note: Request for SPCUs services to be made by governments directly to UNESCO

SPCU TEAM


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SPCU TEAM

Coordinator : Tan Sri Datuk Dr Omar Abdul Rahman

Collaborating Organizations:

IEMP@MUST, Malaysia

PRIMA Consulting, Malaysia Commonwealth Partnership for Technology Management CPTM, London

ISTIC email : [email protected]

website : http://www.istic-unesco.org


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THANK YOUTHANK YOUTHANK YOUTHANK YOU

Omar Abdul Rahman

[email protected]

framework for science, technology and innovation policy

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