1. National Innovation Model MOSTI 22 April 2008

2. Page 2 © MIGHT 2008 Proprietary & Confidential Looking Back, Moving Forward Agriculture Based Economy Production Based Economy Innovation Economy  Land  Labour Basic Input Factors  Technology  Market  Risk Capital Basic Input Factors  Infrastructure  Capital  Labour Basic Input Factors

3. Page 3 © MIGHT 2008 Proprietary & Confidential Malaysia’s Strategic Positioning and Market niche Value added products and services Malaysia National Innovation Model Application GDP Growth and employment Innovation Model for Wealth Creation & Societal Well Being Technology Driven Innovation Source: MOSTI Market Identified Market (to be Identified) Technology Market Driven Innovation Acquisition 10 – 15 years 3 - 5 years Science (Basic Research) Science Grant Risk Capital Technology GrantRisk Capital

4. Page 4 © MIGHT 2008 Proprietary & Confidential Framework for Technology Acquisition in Government Procurement Agriculture Defense Plan Marine Transportation ICT Aerospace Automotive Health Education KEY SECTORS (TECHNOLOGY INTENSIVE) Platform Technologies System Integration Advanced Material Adv Manufacturing Molecular Nanotechnology Photonic etc S&T Policy Industrial & Tech. Policies Industrial Master Plan Blueprint ( various) TECH. DEV. POLICIES & GUIDELINES TECHNOLOGY NEEDS Transportation Resource Based Agro-Based Machinery Equipment Chemicals etc. TARGET PROCUREMENT Companies Universities Research Institutions others EPU Treasury Other Ministries TDA STAKEHOLDERS Malaysia Plan Outline Perspective Plan Annual Budget DEV. & BUDGET PLANS Administrating & Implementing Ministry ACADEMIA R&D INSTITUTION BENEFICIARIESOEMs

5. Page 5 © MIGHT 2008 Proprietary & Confidential Market Opportunity Malaysia’s entry into the global supply chain of tantalum powder production A380 Engine Purchase Offset Programme Malaysia’s Strategic Positioning Value added products and services GDP Growth and employment Market Identified Technology Acquisition Risk Capital Example: Market Driven Innovation for Technology Development Agency

6. Page 6 © MIGHT 2008 Proprietary & Confidential Example: Market Driven Innovation for Technology Development Agency Market Opportunity Market access for supply of locally-made aircraft parts & components worth Euro 195 million A400M Aircraft Participation Programme Malaysia’s Strategic Positioning Value added products and services GDP Growth and employment Market Identified Technology Acquisition Risk Capital

7. Page 7 © MIGHT 2008 Proprietary & Confidential Some Points to Note 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 In developing the defence sector, technology acquisition must..

8. Page 8 © MIGHT 2008 Proprietary & Confidential www.might.org.my

9. Page 9 © MIGHT 2008 Proprietary & Confidential