1. RESEARCH AND DEVELOPMENT (R&D) GRANT SCHEMES
Science, Technology and Innovation (STI) Division
Ministry of Science, Technology and Innovation (MOSTI)
Presenter: Mohd Zahit Ali

2. CONTENTS: 1. INTRODUCTION 2. RESEARCH STRATEGIES
3. TYPES OF GRANT SCHEME
4. CONCLUDING REMARKS
5. Q & A

3. STRATEGIES Focus areas Enhance the quality of research
Provides funding throughout R&D value chain
Enhance management of the funding schemes and monitoring of projects
Strengthen institutional framework

4. THE SECOND NATIONAL SCIENCE AND TECHNOLOGY POLICY (STP2) AND PLAN OF ACTION
( )

5. Seven Strategic Thrust Areas
Strengthen research and technological capacity and capability;
Promote commercialisation of research outputs;
3. Develop human resource capacity and capability;
Promote a culture for Science, Innovation and
Techno-entrepreneurship;

6. Strengthen institutional framework and management for S&T and monitoring of S&T policy implementation;
Ensure widespread diffusion and application of technology, leading to enhanced market driven R&D to adapt and improve technologies; and
7. Build competence for specialisation in key emerging technologies.

7. GOVERNMENT R&D FUND, VALUE CHAIN (8 MP) R&D
COMMERCIALISATION
Market
Needs
Concept/
Idea
Basic
R&D
Applied
R&D
Labs/ Engineering
Prototype
Pilot
Production
Early Growth Production
Mature
Production
MOSTI/ MTDC
CRDF
TAF
TAF-W
MHL
( Research
Allocations
for
IPTA )
MOSTI
IRPA (EAR,PR,SR)
IGS
MGS
DAGS
NOD
BIOTECH
SAGA
MOF-
MAVCAP
Cradle
MOF
(Venture Capitalists,
MAVCAP, Banks, Industries, other financiers.)
BUSINESS DEVELOPMENT UNIT
GAP

8. THE NEW LINEAR R&D&C VALUE CHAIN (9 MP) VCs, MAVCAP,MOF, Industries
PRE-R&D
R&D
PRE-COM
COMMERCIALISATION
Incubation/
Early
Growth
Value
Realisation
Prototype
Development
Mature
Stage
Pre-R&D
Process
Value
Analysis
Concept/
Idea
Basic R
Applied R
Pilot
Plant /
CR Prototype
ScienceFund
Priority Setting, Technology Scanning
TechnoFund
Pre-R&D Process – Includes foresight study, forecast and technology road mapping.
Value Analysis – Feasibility, Viability, Market, Financial Studies for proposed R&D project.
Concept Idea – List down requirement, objectives, scope, methodology of the proposed project. Overview, expected output.
Basic R&D – Fundamental research, generate new knowledge, enhance fundamentals in science, theoretical
Applied R&D – Lab prototype, apply basic science discovery for potential product/process application
Commercially Ready Prototype – prototype ready for pilot scale production. The process include upgrading from lab, engineering to commercial ready prototype.
Incubation – Process of mentoring, nurturing, enterpreneurship, preparation of business plan, marketing skills, financial skills.
Pilot production – Infant stage. In small quantity to test the quality, standard and acceptance of product.
Early Growth Production – Setting up of manufacturing plant. Commencement of commercial scale production.
Mature Production – Full scale production.
Value Realisation – Make profits, create jobs, mass consumption, social benefits.
ScienceFund - To fund basic and applied research in ICT, Biotechnology, Advanced Manufacturing and Advanced Materials which will lead to the discovery of new knowledge that yield publication and intellectual property
TechnoFund - To fund research and development of commercial ready prototype and/or early stage commercialisation in ICT, Biotechnology, Advanced Manufacturing, and Advanced Materials
TechnoFund and CRDF will fund up to early stage commercialisation. Those IRPA projects which were funded earlier can go to apply for the CRDF.
CRDF,TAF/ TAF-W
InnoFund
VCs, MAVCAP,MOF, Industries

9. MP-5 (1988-1990) MP-6 (1991-1995) MP-7 (1996-2000) MP-8 (2001-2005)
( )
4 sectors:
Agriculture
Health
Industry
Strategic
Grant Management : Treasury
5 sectors:
Social Science
9 sectors:
Agro-industry
Energy
Environment
IT & Services
Mineral & Geo-Science
Manufacturing & Construction
Science & Engineering
Grant Management :
MOSTE
1. EAR
- Agriculture & Food
Security
- Natural Resources &
- Manufacturing & Services
- Social Transformation
- Knowledge Advancement
2. PR
- Manufacturing
- Plant Production & Primary
Products
- Information &
Communication
- Health
- Education & Training
3. SR
- Design & Software
Technology
- Nanotechnology & Precision
Engineering
- Specialty Fine Chemicals
- Optical Technology
MOSTI
1. ScienceFund:
a) Biotechnology
b) ICT
c) Industry
d) Sea to Space
e) Agriculture
2. TechnoFund:
a) Agriculture
b) Biotechnology
c) ICT
d) Industry
3. InnoFund:

10. GOVERNMENT ALLOCATION FOR R&D
9th-MP
( )
ScienceFund
RM1.2 billion
TechnoFund
RM1.5 billion
InnoFund
RM200 million

11. R&D&C FUND
ScienceFund
Technofund
Innofund

12. Click to access login page
This is the official eR&D web-page. To access this page, type the following web address into the address bar. Click on the eScienceFund tab to access the eScienceFund login page as shown in the diagram below.
Click to access
login page

13. ScienceFund
MOSTI

14. OBJECTIVES
To generate new knowledge through basic and applied sciences;
To develop laboratory proof of concept; and
To enhance research capability and increase number of researchers.
National Scientific Research Fund (ScienceFund) – aim: discover new knowledge
Coverage - Basic R&D, 100% funding, IP
Principal applicant – Public sector

15. TYPES OF RESEARCH Strategic basic research: Applied research:
experimental or theoretical work undertaken primarily to acquire new knowledge that are expected to lead to useful discoveries.
Applied research:
research undertaken to acquire new knowledge for a specific application (targeted research).
This section will show the proposed enhancement oh the R&D grant mechanisms.

16. Biotechnology Cluster
RESEARCH FOCUS AREAS
Biotechnology Cluster
ICT Cluster
Industrial Cluster
Sea to Space Cluster
Agriculture
This section will show the proposed enhancement oh the R&D grant mechanisms.

17. ELIGIBLE RECIPIENT Research Institutions;
Public Institutions of Higher Learning;
Private Institutions of Higher Learning (subject to MOSTI approval)
Government STI Agencies
GLC research laboratories
This section will show the proposed enhancement oh the R&D grant mechanisms.

18. TYPE OF PROPOSAL Request For Proposal (RFP)/Competitive Bidding
Announcement for bidding
Researchers are invited to bid for research funding on specific areas of research.
ii. Applicant Initiated Project (AIP)
2 cycles per year
Researchers apply for funding under the six priority areas.
This section will show the proposed enhancement oh the R&D grant mechanisms.

19. SCOPE OF SCIENCE FUND
The funding is for strategic basic and applied research up to laboratory proof of concept
This section will show the proposed enhancement oh the R&D grant mechanisms.

20. ELIGIBLE EXPENSES Temporary and contract personnel;
Travel and transportation;
Rentals;
Research materials and supplies;
Minor modifications and repairs;
Special services; and
Special equipment and accessories.
This section will show the proposed enhancement oh the R&D grant mechanisms.

21. RESEARCH AGREEMENT
Signed between MOSTI and the head/CEO of institutions within 14 working days upon acceptance of the approved projects.
Terms of agreement:
Scope of work;
Financial management;
Ownership of Intellectual Property Rights (IPR);
Benefits sharing from IP exploitation; and
Exit Clause.
This section will show the proposed enhancement oh the R&D grant mechanisms.

22. PROJECT
MONITORING

23. MONITORING & EVALUATION
PROGRESS REPORT
(Reported by Project Leader on financial and milestone progress as well as overall achievement of project)
PROGRESS ASSESSMENT REPORT
(Assessment by Technical & Financial Committee based on reports and / or site visits)
END OF PROJECT REPORT
(Reported by Project Leader 3 months after project completion)
This section will show the proposed enhancement oh the R&D grant mechanisms.
OUTCOME ASSESSMENT REPORT
(Assessment by Technical & Financial Committee on output of the project)

24. OBJECTIVES
Ensuring all approved projects are implemented in line with the approval of the Coordinating
Committee
Ensuring project allocations are utilized in
accordance with the existing financial procedures
Ensuring a higher level of accountability,
integrity & transparency in research expenditure
amongst researchers, coordinators & research
institutions
Submitting recommendations for remedial
actions on problematic projects
Assisting the identification of potential research
outputs to be upgraded or commercialized

25. RESEARCH OUTPUT AND CONTRIBUTION
Patent
Publications : Reputable journals (Conferences/seminars), Citation, Books and Others.
Laboratory proof of concept
Linkages/collaboration: International, regional, national research institutions, laboratories, incubators, and industries
Human Capital Development : PhD, MSc
For purpose of evaluating the success or failure of the funds the following key performance indicators are proposed:
For ScienceFund the KPIs are Intellectual Property Rights, Publications, Laboratory Prototypes and Researchers trained
For TechnoFund the KPIs are Commercial Ready Prototypes, Intellectual Property Rights, Pilot Plants, Sales from R&D outputs, Tech-based companies, Spin-off companies, and Technology transfers

26. Check archive projects
The eScienceFund web-page contains important announcements and downloads which provide helpful information regarding Sciencefund.
Before logging in, it is advisable to read the ScienceFund Guideline which can be downloaded from this page. Other important information which can be downloaded are shown in the diagram on the left.
From the Utilities section, researcher can perform a search on past research projects approved under the IRPA Programme by clicking on the “Archive Projects” hyperlink.
Sign-In
Users who had registered with eIRPA can sign in using the Username and Password provided by the system administrator. For new user, click on the “Register New User” hyperlink to register. For further information on registration, refer to eScienceFund Manual which can be downloaded from the Downloads section. The eScienceFund also provide Helpdesk which provides personal assistant on the eScienceFund application.
Read
Check archive projects

27. PRE-COMMERCIALISATION AND IP ACQUISITION FUND
TECHNOFUND
PRE-COMMERCIALISATION AND IP ACQUISITION FUND

28. What is TechnoFund?
TechnoFund is a competitive funding to undertake innovation to develop and commercialize new, cutting edge and breakthrough technologies in Agriculture, Biotechnology, ICT, and Industry Clusters that create new businesses and economic wealth for Malaysia.

29. AIMS TechnoFund aims to:
Stimulate the growth and successful innovation of Malaysian medium and large enterprises by increasing the level of R&D and its commercialisation;
Increase capability and capacity of Malaysian IHL and RI to undertake market driven R&D and to commercialise the R&D findings through spin-offs / licensing;

30. AIMS
cont’d (2)
Enhance global competitiveness and R&D culture among Malaysian medium and large enterprises;
Increase contribution to Malaysia’s GDP through economic wealth creation and exports ; and
Foster greater collaboration between Malaysian enterprises and GRI / IHL.

31. Pre-Commercialisation
TechnoFund Type
Applicants can apply for a combination of the following TechnoFund Types:
Type A:
Pre-Commercialisation
Type B:
IP Acquisition
Option
Type 1
A+B 2
A only
(Note: IGS, DAGS, IRPA-EAR, IRPA-PR and IRPA-SR funded projects are not eligible for Type B. MGS, CRDF and TAF funded projects are not eligible for any Type including MSC Status companies.)

32. Type A: Pre-Commercialisation
Pre-commercialisation activities comprise development of commercial ready prototypes / pilot plants / clinical trials / up-scaling for demonstration and testing purposes but not commercial exploitation

33. Type B: IP Acquisition
Type B comprises acquisition of IP (academic / laboratory scale prototype) from overseas or local sources for further development up to pre-commercialisation stage

34. TARGET GROUP
Medium and Large Malaysian Companies (including GLCs and PLCs):
minimum 51% equity held by Malaysians; and
annual sales turnover > RM10 mil or full time employees > 50
Malaysian GRI and IHL

35. TECHNOLOGY CLUSTERS Agriculture Biotechnology ICT Industry
Four Technology Clusters:
Agriculture
Biotechnology
ICT
Industry

36. Agriculture Cluster
Animal
Plant
Food
Marine/Aquatic

37. Biotechnology Cluster
Healthcare
Medical Biotechnology
Biopharmacy
Industrial

38. ICT Cluster Information System ICT Infrastructure Software
Emerging Information Technology
Communication
Security System
Artificial Intelligence
Signal Processing
Data
Database Technology
ICT Application

39. Industry Cluster Advanced Materials Advanced Manufacturing
Nanotechnology
Alternative Energy

40. COLLABORATION
Industry applicants are encouraged to collaborate with one or more GRI / IHL (public or private).
GRI/IHL must identify industry partner(s) to undertake joint collaboration. Industry partner(s) should jointly contribute financial or non-financial resources to the project.

41. Scope of Funding Type Scope of Funding A Pre-Commercialisation
Cont’d (2)
Type
Scope of Funding A
Pre-Commercialisation
Pilot plant set up/ commercial-ready prototype development/ clinical trial;
IP preparation and registration excluding maintenance of IP;
Market testing of commercial-ready prototypes (participation in trade fairs and exhibitions);
Regulatory and standard compliance;
Product documentation;
Equipment and materials for pre-commercialisation;
Contract expenditure; and
Expenditure for services (market survey, consultancy and testing).

42. Scope of Funding Acquisition of IP Training (Technology transfer) TypeB
IP Acquisition
Acquisition of IP
Training (Technology transfer)

43. Quantum of Funding
The quantum of funding and percentage of funding support under TechnoFund will be determined on the merit of each application.

44. Commercial Evaluation
Application Workflow
Request for Proposal
Brief Proposal
Screening
Full Proposal
Technical Evaluation
Commercial Evaluation
Approval Committee

45. INNOVATION FUND (INNOFUND)

46. What is INNOFUND? Individual, Micro and Small Enterprises
INNOFUND provides funding for:
Individual, Micro and Small Enterprises
Development of new or improvement of existing products, process or services with elements of innovation
Community Groups
Conversion of knowledge/idea into products / process / services that improve the quality of life of communities

47. TYPES OF INNOFUND Enterprise Innovation Fund (EIF)
Community Innovation Fund (CIF)

48. Enterprise Innovation Fund (EIF)

49. EIF: Eligibility Criteria
Individual, Micro and Small Enterprises
Must contain innovative element(s) leading to commercialisable products, processes or services; and
Can be in any form : re-combining, fusing, integrating, replicating or refining of existing technologies with improved value, enhanced efficiency or cost reduction.

50. Target Groups Enterprise Annual Sales Turnover (RM mil.)
Full Time Employees
(person)
Micro
< 0.25
< 5
Small
< 50
Individual NA

51. Technology Clusters
Three Main Clusters *
Biotechnology
ICT
Industry

52. EIF Scope of Funding The eligible expenditure are:
Consumables / materials;
Equipment (not more than 40% of total project cost);
Expenditure for services (consultancy and testing);
Product documentation;
Regulatory and standard compliance; and
Market testing (including samples, fees and documentation for participation in trade fairs and exhibitions).

53. Quantum Enterprise Grant (RM mil.) Micro 50,000 Small 250,000
Individual
20,000

54. Project Duration Category Maximum Duration (months) Individual /
Sole Proprietor 12
Micro
Small 18

55. EIF Workflow Request for Proposal Internal Committee Screening
Technical Evaluation
Approval Committee

56. Community Innovation Fund (CIF)

57. CIF: Eligibility Criteria
Community Group
Contributes to societal well-being; and
Can be in any form : re-combining, integrating, replicating or refining of existing technologies with improved value, enhanced efficiency or cost reduction.

58. Community Groups Target Groups Non Governmental Organizations
Community Associations
Village Development and Security Committees (JKKK)

59. Technology Clusters There is no technology clusters for
CIF. The emphasis is innovation
that improves social
well-being of communities.

60. CIF Scope of Funding The eligible expenditure are:
Consumables / materials;
Equipment (not more than 40% of total project cost);
Expenditure for services (consultancy);
Product documentation; and
Demonstration application (including samples, fees and documentation for participation in exhibitions).

61. Maximum Duration (months)
Project Duration
Maximum Duration (months) 18

62. CIF Application Process
Activity
Submission
Working days
(i) Application
Throughout the year -
(ii) Assessment of Proposal and Notification of Result 60
TOTAL

63. CIF Workflow Request for Proposal Internal Committee Screening
Technical Evaluation
Approval Committee

64. AGREEMENT
An agreement will be signed between the Government and successful applicants.
This section will show the proposed enhancement oh the R&D grant mechanisms.

65. MONITORING MECHANISM A. REPORTS
Periodic Progress Report (every 3 months)
- milestone
- financial
2. End Of Project Report
B. ON-SITE VISIT (Selective Basis)
C. SEMINARS / DIALOGUE
This section will show the proposed enhancement oh the R&D grant mechanisms.

66. ISSUES

67. Where was UiTM on R&D? Involvement? Contribution? Achievement?

69. No. of IRPA Projects Approved under 7MP

70. Amount of IRPA Grant Approved under 7MP

72. No. of IRPA Projects Approved under 8MP (As of 31 Dec. 2004)

73. Amount of IRPA Grant Approved under 8MP (As of 31 Dec. 2004)

74. First Cycle (2006), 9 MP (No. of Project)

75. First Cycle (2006), 9 MP (Amount Approved)

78. Issues
Emerging Concern for Commercialisation (GERD/GDP; 0.69% (8 MP), Target to 1.5%)
Patents / License / Royalty /
No. of spin-off company
No. of Technopreneurs
Manpower for R&D Management
RMCs in Univ./ Management in GRIs & GLCs

79. KEY PERFORMANCE INDICATORS (KPI)
GERD/GDP
RSE per 10,000 Labour Force
Publication
Intellectual Property
Commercialisation
Speaking Notes:
The following Key Performance Indicators will be used to measure the performance of the National R&D Funding Programme.
The Key Performance Indicators are as follows:
Gross Expenditure of R&D/Gross Domestic Product (GERD/GDP)
Researcher, Scientist, Engineer (RSE) per 10,000 Labour Force
Publication
Intellectual Property (IP)
Commercialisation

80. GERD/GDP
Speaking Notes:
This bar chart attempts to benchmark the performance of Gross Expenditure on R&D against Gross Domestic Product (GDP).
GERD/GDP for Malaysia is 0.69% (2002). This shows an increase from 0.50% (2000).
This is low compared to USA at 2.65% and Singapore at 1.89%.
Source: MOSTE (2000), National Survey of R&D, Putrajaya, p. 20

81. RSE PER 10,000 LABOUR FORCE
Speaking Notes:
This bar chart compares the number of Researchers, Scientists and Engineers (RSE) per 10,000 Labour Force of selected countries.
RSE per 10,000 labour force for Malaysia is 18 (2002). This is an increase compared to 15 per 10,000 labour force (2000).
This is low compared to Japan at 136 and Singapore at 83 RSE per 10,000 labour force.
Source: MOSTE (2000), National Survey of R&D, Putrajaya, p. 18

82. PUBLICATIONS:
Speaking Notes:
This table shows the number of published articles in international journals.
Malaysia ranked number 55 out of total 178 countries.
Source: ISI’s NSIOD-Deluxe (2002). National Science Indicators, cited in MOSTE (2003) Science &
Technology Knowledge Productivity in Malaysia Bibliometric Study, Putrajaya.

83. INTELLECTUAL PROPERTY: 1993 - 1996
Speaking Notes:
In terms of patent applications, Malaysia fared badly with 5,600 compared to Japan (399,400).
Source: OECD, PECC cited in MOSTE (1998) Malaysian Science and Technology Indicators Report, p. 213

84. COMMERCIALISATION Survey of 5,232 projects implemented in 6MP & 7MP:
14.1% with commercial potential
5.1% commercialised
(Source: 8MP Report p. 351)
10% US patented technology commercialised
(Source : US Congressional Paper : Industrial Competitiveness and technological Advancement : Debate over Government Policy III. Yr 2000)
Speaking Notes:
The rate of commercialisation is a contentious issue.
There is no comprehensive study on the commercialisation of R&D outputs.
However, a survey, conducted on 5,232 R&D projects implemented in 6th and 7th Malaysia Plan has shown 14.1% have commercial potential while 5.1% have been commercialised.
In-depth explanation on commercialisation will be discussed in subsequent paper on Enablers of Commercialisation.

85. MOSTI’S SURVEY ON 7 MP Findings No.
No.
Projects with Commercialization Potential
 527
Intellectual Property
Copy Right
148
Patents to be filled 85
Patents Pending 28
Patents Obtained 23
Publications
International
4,829
National
9,352
Human Resource
PhD
401
MSc
1,521
Awards
130
201

86. E-mail: zahit@mosti.gov.my
THANK YOU

87. CRITERIA OF SELECTION Viability of Research Objectives,
Output Expected,
Collaboration and industrial linkages,
Appropriateness of research methodology,
Relevancy of key milestone,
Commercialisation potential,
Cost effectiveness,
Project risks (Technical, Financial, Timeline)
National Scientific Research Fund (ScienceFund) – aim: discover new knowledge
Coverage - Basic R&D, 100% funding, IP
Principal applicant – Public sector

88. Problems On Application
Wrong cluster,
Methodology text (on-line system) overshoot space provided, Panel remarks: application in-complete
Duplication of application (one rejected),
Amount requested too high,
Grant specifically to be used for research per se.
National Scientific Research Fund (ScienceFund) – aim: discover new knowledge
Coverage - Basic R&D, 100% funding, IP
Principal applicant – Public sector

89. Other Problems Changing of Project Leader, Change Vote series,
National Scientific Research Fund (ScienceFund) – aim: discover new knowledge
Coverage - Basic R&D, 100% funding, IP
Principal applicant – Public sector

90. Sea-To-Space Applied Sciences, Physical Sciences,
Environmental Sciences,
Material Sciences,
Etc.
National Scientific Research Fund (ScienceFund) – aim: discover new knowledge
Coverage - Basic R&D, 100% funding, IP
Principal applicant – Public sector