1. Sharing Knowledge, Innovative Solutions 1
For Malaysia, By Malaysian, In Malaysia
Sharing Knowledge, Innovative Solutions 1
For Malaysia, By Malaysian, In Malaysia

2. CHALLENGES OF MALAYSIAN ECONOMY (Comin, 2013)
Investment & Productivity
-50%
Compared to 1990s
GDP Manufacturing Sector
31% - 25%
(2000) (2012)
Main impediment?
industry has technological knowledge gap
Malaysia has the potential for SMEs to increase their productivity and move companies up the value chain
Impact to industry
Unable to adopt state of the art production methods
No market for technological knowledge
This makes it hard to
–adopt and develop frontier technologies
–offer new products and services
–enter in new geographic markets
–increase efficiency of production methods
Sharing Knowledge, Innovative Solutions
For Malaysia, By Malaysian, In Malaysia

3. How to Overcome the Knowledge Scarcity
Create a knowledge-friendly ecosystem
An environment where knowledge is produced and diffused
from those that have it to those that need it
Universities & higher education institutions
Who has it
Companies/Industries
Who needs it
Sharing Knowledge, Innovative Solutions
For Malaysia, By Malaysian, In Malaysia

4. SELECTED INITIATIVE
Focus on demand driven research, via PPRN to provide
solutions to SMEs
This is done to facilitate meeting with industries by design and no longer by chance.
It is hoped that the collaboration will move the companies up the value chain and enhance the bringing of solution to the market place.
Sharing Knowledge, Innovative Solutions
For Malaysia, By Malaysian, In Malaysia 4

5. An initiative by Ministry of Education (MOE) as one of the strategies to increase productivity and strengthen Malaysian economic development through innovation and commercialization programs.
71,000
lecturers
IHL
resources
24,000
PhD
PPRN will optimize & leverage resources and expertise available at IHLs and RIs
Sharing Knowledge, Innovative Solutions
For Malaysia, By Malaysian, In Malaysia

6. Scope of Projects How does it work?
Product development & innovation
Develop new products, services or software or parts of them for a company
Innovate existing products of the company to the market need
Company describes technological problems or areas
where there is potential for productivity gains.
Process development & innovation
Implementation of a new or significantly improved production processes, delivery method or services
Streamline production to make it more efficient and to make better use of state-of- art technology
Develop processes to scale up production
PPRN will find a team of experts/scientists that will
provide/develop state of the art technology to solve problem.
Value enhancement in supply chain
Sourcing components
Warehouse & logistic
Help develop Information Systems
solutions
Company and PPRN will co-finance development cost.
Sharing Knowledge, Innovative Solutions
For Malaysia, By Malaysian, In Malaysia

7. Selection criteria and requirements for Industrial Technology Problems
Projects need to be technological in nature. Projects that essentially involve management or marketing solutions will not be considered.
Projects that involves product that need and require the development of innovative technological solutions must be at commercial stage i.e ready in market but may need improvement in term of process or product itself.
Projects that essentially require the purchase of off-the-shelve solutions such as products, software or services will not be considered.
There is no field restriction. Projects may involve any area of applied science or engineering.
Priority will be given to projects that can be completed within six months, but the secretariat may accept project duration up to a year if they have significant social and business value.
Ministry of Education Malaysia (MOE)/PPRN will finance a portion of the total project cost and companies should be ready to co-finance their project.
Sharing Knowledge, Innovative Solutions
For Malaysia, By Malaysian, In Malaysia

8. Funding mechanism 70% 25% 5% Commitment PPRN:company*
Component for PPRN funding
Matching grant
90:10
– micro enterprise
Research materials
/prototyping/testing
70%
Up to
RM50k / project
PPRN
70:30
– small
Research materials/tools
Facilities
Infrastructure
In-kind
25%
Researchers
compan y
50:50
– medium 5%
Institutions
* Size of company is based on new definition of SME by SME Corp Malaysia which in effect from 1 January 2014
Sharing Knowledge, Innovative Solutions
For Malaysia, By Malaysian, In Malaysia

9. Guideline for new SME definition (in effect from 1 January 2014)
SECTOR
SME
MICRO
SMALL
MEDIUM
Manufacturing
<RM50 million
<200 employees
<RM300,000
<5 employees
RM300,000-<RM15 million
5-75 employees
RM15 million- <RM50 million
employees
Services
<RM20 million
<75 employees
RM300,000-<RM3 million
5-30 employees
RM3 million - <RM20 million
30-75 employees
Primary
Agriculture
Construction
Mining &
quarrying
NOTE:
A business will be deemed as an SME if it meets either one of the two specified qualifying criteria, namely sales turnover or full-time employees, whichever is lower.
SOURCE :
SME Corp. Malaysia, October 2013
Sharing Knowledge, Innovative Solutions
For Malaysia, By Malaysian, In Malaysia

10. Incentive for Researchers
Working experience
with industry
- Criteria for promotion
25% professional fee
- Of total PPRN funding
Management of fund
Project monitoring
Researcher – Interim & Final project report
Company – Productivity achievement
Will be paid through research Institution
Sharing Knowledge, Innovative Solutions
For Malaysia, By Malaysian, In Malaysia 10

11. PILOT STUDIES 2 pilot projects Conducted in 2 pilot projects:
Take-off Innovation Project
• Jun 2014
KPM-MTDC 2
pilot projects
Demand-Driven Innovation Project (DDIP) by PPRN
• November 2014
KPM-MTDC- SME Corp-PUNB
Conducted in 2 pilot projects:
Findings:
Malaysian companies try hard to improve their technology
Can benefit from external help
Much research/knowledge is sitting in universities and research institutes
Can be used to provide solutions to companies technological problems
This is cheap and efficient
Sharing Knowledge, Innovative Solutions
For Malaysia, By Malaysian, In Malaysia

12. Differences between Fraunhofer and Steinbeis Models
PPRN taps on a great pool of local knowledge
PPRN relies mainly on technology diffusion but can lead to innovations
Fraunhofer almost exclusively innovates
Steinbeis acts more like management consultant
PPRN covers all economic sectors/areas not just a few
PPRN focusing on short and medium term project
PPRN is designed thinking about Malaysia’s needs and works following
Malaysian rules
PPRN provides platform of bidding
Sharing Knowledge, Innovative Solutions
For Malaysia, By Malaysian, In Malaysia

13. CONCLUSION
PPRN can solve technological problems of many Malaysian companies
Facilitate their move up the value chain
This is a more efficient way to bring knowledge to society DISTINCT from product development
Tap on large existing pockets of knowledge
Align incentives of researchers to conduct more applied research in the fields that are more helpful to companies; to focus on market demand
Increase demand for skilled and semi-skilled workers
Make growth more inclusive
Sharing Knowledge, Innovative Solutions
For Malaysia, By Malaysian, In Malaysia