1. 23 rd November 2011 MCST Conference: Amplifying the Competitiveness of Manufacturing in Malta Industry’s views of Research for Competitiveness Ing. Ray Muscat

2. Industry’s perspective of RTDI  RTDI is a determinant for the competitiveness of European enterprises.  The RTDI process is seen to be essential for process improvement, and product / service development.  RTDI is an investment in business development, particularly when this leads to new knowledge and future intellectual property assets.  Implementation of RTDI processes require systematic implementation and management of the risks involved to ensure effectiveness.

3. RTDI and Maltese Industry Group 1 – FDI Enterprises Driven by RTDI  A small number of companies undertaking research locally, whereby this is intrinsically linked with the product they produce.  Enterprises who undertake international marketing from Malta leading to the requirement of R&D functions. Group 2 – FDI Enterprises R&D is undertaken abroad, local process innovations  R&D is essential to these companies, however due to internal (international) corporate policies this research is not undertaken in Malta.

4. RTDI and Maltese Industry Group 3 – Maltese Enterprises / Technology Start-ups Capacity constraints for RTDI  Enterprises consider RTDI as an important determinant, however they may experience limited capacity to implement: culture of organisation, knowledge and expertise, human resources, idea management, financial resources and access to adequate infrastructures. Group 4 – Maltese Enterprises Somewhat Sceptical about RTDI benefits  Enterprises who generally are reluctant to undertake RTDI due to the uncertainty of RTDI outcomes, cost and/or lack of importance given to the RTDI process itself. The majority of enterprises fall in this group.

5. Group 1 – Driven by RTDI Engagement in collaborative industrial research Development and promotion of innovative clusters Technology / Knowledge Transfer & Licensing Partnerships between industry, academia and foreign institutions Examination of the whole value chain and the supporting infrastructure required to accelerate the growth of these industries through the various stages of development Innovation Value Chain and Infrastructure Programmes to encourage high-end academic research Requirement of sound national and academic IP policies Linkages between Academia and Businesses Access to local and foreign talent and researchers Education Preparedness

6. Group 2 – R&D undertaken abroad The development of a functional Eco System for innovation and the right environment Fiscal / financial incentives specifically targeted to encourage the transfer of R&D investments from other locations Enabling the formation of clustering activities, which in turn could be the driver of RTDI process formations and academia linkages among clustered enterprises Statutory cost simplification / cost reduction of RTDI processes and related infrastructure Innovation Value Chain and Infrastructures

7. Group 3 – Capacity constraints for RTDI Instruments to transform innovative ideas into marketable solutions A commercialisation process after proof of concept Appropriate funding programmes to fuel R&D processes Introduction of programmes that promote seed funding for Start-Ups Access to integrated financing support along the various development stages Access to Finance Access to local expertise to support industry’s IMT requirements Awareness raising of IMT importance at top management Access to IMT concepts as the basis for continuous development, organisation learning, R&D and internationalisation Innovation Management Techniques Eagerness to reinforce linkages for knowledge flows between academia and business Collaboration with Public entities to aim for a National IP policy Awareness on the risks and benefits of IP registration / licensing Linkages between Academia and Businesses

8. Group 4 – Sceptical about RTDI benefits General awareness and training on the importance of increasing value-added activities for competitive advantage An on-going assessment, at the sector level, of skill requirements and the associated HR development for (R)TDI processes Ensuring that at the enterprise level, the appropriate skills are in place for the gradual build-up of capacity for increased technology absorption, idea management and RTDI processes Education Preparedness, Culture & HRD

9. Enhancing our Innovation and R&D efforts in Industry  Creation of a more dynamic and competitive environment for market-driven research and development.  Promotion of the development and growth of technology- driven and knowledge-based manufacturing industries.  Designing and implementing an enabling and integrated framework in all relevant policy areas.  Creation of an efficient R&D infrastructure to enhance Malta’s attractiveness to high-valued added FDI, better anchoring of existing FDI and accelerating the capacity of our industries to internationalise.

10. THANK YOU ray.muscat@maltachamber.org.mt