Document ID: IPF 12-012 VINNOVA Dno: 2009-04589 Singapore SME Innovation Support Schemes Final Report on IPF Review visit to Singapore May 2012
PAGE 2
Summary This report describes the results of the research and study visit which was conducted to investigate aspects of the SME innovation support in Singapore as part of workpackage 5 activities. As outlined in the body of the report the study found several approaches used by Spring Singapore, the agency in charge of the development of indigenous Singapore enterprises, which were considered good practices and which could be considered for transfer to a European context. The report describes the Enterprise One scheme, which is considered good practice in the delivery of basic information and advice to a very large number of SMEs. This programme which consists of a web-portal, hotlines and a network of advice centres is aimed at providing a single portal and point of access for SMEs to access basic information and advice services provided by large number of different government agencies. The report also describes the approach used in Singapore to the support of youth entrepreneurship, where Spring Singapore run programmes to support the development of entrepreneurship education programmes in schools and funding programmes to support start-up companies established by young entrepreneurs. Dissemination level: The dissemination level set for this report is PP i.e. restricted to program participants (incl. the Commission Services). PAGE 3
This report was prepared by: Terence O Donnell, Enterprise Ireland, Kate Yarrington, Technology Strategy Board, UK Contact details: Enterprise Ireland, Rossa Avenue, Bishopstown, Cork, Ireland Phone: +353 21 4800236 e-mail: terence.odonnell@enterprise-ireland.com Disclaimer The views expressed in this report are those of the author and the Peer Review Team. They do not necessarily reflect the opinion or position of the European Commission and in no way commit the involved organisations. PAGE 4
1 Introduction... 7 2 Singapore Policy Mix, Objectives and Delivery... 7 2.1 Main Actors in the Innovation Support System... 9 2.1.1 SPRING Singapore... 10 2.1.2 A*Star... 10 2.1.3 Exploit Technologies Pte Ltd (ETPL)... 10 2.1.4 Singapore Economic Development Board... 10 2.1.5 IE Singapore... 10 3 Spring Singapore SME support schemes... 11 3.1 Youth Entrepreneurship Promotion... 12 3.1.1 Young Entrepreneurs Scheme for Schools: Yes!Schools... 13 3.1.2 Ideas.inc Business Challenge... 14 3.1.3 Young Entrepreneurs Scheme for Start-ups (YES! Start-ups)... 14 3.2 Service Delivery: The EnterpriseOne Approach... 15 3.2.1 Operation of the System... 16 3.2.2 Features... 17 3.2.3 Results and Impact... 18 3.2.4 Success Factors & Lessons Learned... 18 4 A*Star SME Support Schemes... 19 4.1.1 Exploit Technologies... 21 5 Good Practices & Transferability... 23 5.1 Integrated Approach to Youth Entrepreneurship... 23 5.1.1 Transferability... 24 5.2 EntepriseOne Approach... 24 5.2.1 Transferability... 25 PAGE 5
PAGE 6
1 Introduction The Inno Partnering Forum (IPF) is concerned with identifying and learning from best practice in SME innovation support programmes in Europe and around the world. Specifically Workpackage 5 within the project was to identify countries and programmes outside of Europe with the potential to supply examples of good practice. An initial phase of desk research identified a number of countries and SME innovation support programmes within those countries which could potentially be considered good practice. A second phase of the work focused on conducting more detailed research on a short list of identified programmes including a review or study visit to countries of particular interest. The third phase of the work involved the analysis and formulation of possible new measures based on the programmes and practices identified during the study visits. Singapore was identified as a country of interest as it is among the top 10 innovation performers in the world, with a very strong focus on developing a knowledge and innovation based economy. Over the past 10 years or more it has developed a very strong innovation support system. The study visit to Singapore was organised as a follow on visit to the visit to South Korea. Of particular interest to the IPF in Singapore were the activities of Spring Singapore, the agency responsible for the development of local industry and in particular SMEs and A*Star the agency for Science, Technology and Research. Of particular interest to the IPF is the operation of the EnterpriseOne service which is managed by Spring Singapore and their schemes for support of entrepreneurship. For example they run several schemes aimed at encouraging entrepreneurship from an early age such as the Young Entrepreneurs Scheme for Start-ups and the Young Entrepreneur Scheme for Schools. 2 Singapore Policy Mix, Objectives and Delivery Singapore is a Southeast Asian country with a population of 5 million (just a little larger than Finland), of which 42% are non-natives. It is a leading financial centre with the fastest growing economy and highest per capita GDP in the world. (GDP growth of 17.9% in 2010) and is in the top 10 of innovating countries. Figure 1 shows an overview of the development of the Singapore economy over the past 50 years. The economy has developed from being a labour intensive one in the 1960s to being knowledge and innovation based economy in the 2000s. Singapore has no natural resources; the economy has largely being built on the importation of raw materials and the export of finished goods. It is very much an export based economy with the main exports being in Electronics, Chemicals and services. PAGE 7
Figure 1: Growth and Development of the Singapore economy over the past 50 years. Singapore has been very successful in attracting Foreign Direct Investment, with currently more than 3000 Multi National Corporations (MNC) located in Singapore. SMEs are also a very important part of the economy as they account for 99% of the total enterprises, 60% of employment with a value added contribution of 46% (2007). From 1990 onwards there has been a very active push by the government to make Singapore into a knowledge intensive economy which has been very successful. Between 1990 and 2009, Singapore s GDP has grown by 3.7 times and R&D expenditure has grown from being 1% of GDP to a present figure of 2.3% of GDP. The approach to policy development in Singapore could be characterised as being holistic with very much a planned capitalism system. The government has invested in and owns a share of many large companies which are closely related to the Singapore economy through its investment company Temasek Holdings. The development of Science, Technology and Innovation is planned according to a series of Five year plans. The current 5 year plan, termed Research, Innovation, Enterprise 2015 (RIE2015), runs from 2011 to 2015 and promises a S$16.1 billion (approximately 9.8 billion ) investment in R&D over the 5 years. This represents a 20% increase in funding over the previous 5 year plan. PAGE 8
The RIE2015 has six main thrusts; o Investment in basic science as the basis for future innovations o Attracting and developing scientific talent to locate in Singapore o Greater emphasis on competitive funding as a means to select the best ideas o Fostering of greater synergy between public and private enterprises. o A greater focus on research with economic outcomes o Strengthened support for technology commercialisation 2.1 Main Actors in the Innovation Support System The diagram in Figure 2 illustrates the main actors and their position in the Singapore RD&I framework. Public funding for industrial RD&I comes mainly through the Ministry of Trade and Industry. It funds 10 Statutory Boards, including SPRING Singapore (Standards, Productivity and Innovation Board) and A*STAR (Agency for Science, Technology and Research). Other agencies include the Economic Development Board, which formulates and executes strategy for growing the Singapore economy, and International Enterprise Singapore which helps Singapore-based companies expand overseas. Figure 2: The R&D Framework in Singapore PAGE 9
2.1.1 SPRING Singapore http://www.spring.gov.sg SPRING Singapore is the enterprise development agency responsible for helping Singapore enterprises grow. They assist enterprises though financing, capability and management development, technology and innovation, and with accessing new markets. SPRING is also the national standards and accreditation body. 2.1.2 A*Star http://www.a-star.edu.sg/ The Agency for Science, Technology and Research (A*STAR) is the lead agency for fostering scientific research and talent in Singapore. A*STAR has 7 research institutes in the biomedical sciences area and 7 research institutes in the physical sciences and engineering area and employs over 2,300 researchers. Most of the research centres are located in Biopolis and Fusionopolis campuses which accommodate the biomedical institutes and science and engineering institutes respectively. A*Star s focus is very much on industrially relevant research and it supports Singapore's key economic clusters by providing intellectual, human and industrial capital to industrial partners. 2.1.3 Exploit Technologies Pte Ltd (ETPL) http://www.exploit-tech.com ETPL is the marketing and commercialisation arm of A*STAR which manages the intellectual property portfolio of A*STAR s research institutes and centres. It promotes the institutes research capabilities and facilitates the transfer of A*STAR s technologies to industry. Its aim is to ensure that new IP generated by A*Stars researchers is exploited to produce tangible products and services. 2.1.4 Singapore Economic Development Board http://www.sedb.com The Singapore Economic Development Board (EDB) is the government agency concerned with planning and executing strategies to enhance Singapore's position as a global business centre. Its activities include Attracting Foreign Investment, Growing Industry Verticals by helping expand existing industry into new growth areas and enhancing the Business Environment by working with other government agencies to ensure that infrastructure and public services are conducive to a successful business environment. 2.1.5 IE Singapore http://www.iesingapore.gov.sg International Enterprise (IE) Singapore is the government agency driving Singapore's external economy. The agency is concerned with the overseas growth of Singaporebased companies and promotes international trade. IE assists Singapore-based companies in their international expansion through providing what is referred to as their "3C" framework of assistance (Connections, Competency and Capital). They also operate a global network in over 35 locations spanning many emerging markets. They also anchor PAGE 10
global trading companies in Singapore and position the country as a base to expand into the region in partnership with Singapore-based companies. 3 Spring Singapore SME support schemes (SPRING Singapore, 2010 budget S$90 million, approximately 54 million ) Spring s main role is in assisting the development and growth of Singapore s indigenous companies. It therefore runs programmes aimed mostly at entrepreneurs, start-ups and SMEs. For its programmes aimed at SMEs Spring Singapore divides it offerings into Capability Programmes and Financing Programmes. The Capability Programmes are aimed at the development of SME competencies for long term growth. They include such things as business mentorship, management development for CEOs, technical assistance programmes, marketing programmes etc. The programmes aimed specifically at Technology Innovation include the following; Innovation Voucher Scheme : This is similar to the Innovation Voucher schemes run by many Europe, whereby an SME can apply for a voucher worth S$5000 ( 3000 ), which can be redeemed for knowledge related advice and services from knowledge providers. From mid 2012 the innovation voucher scheme is to be extended to cover advice and services in productivity, HR development and financial management, in addition to technical advice and services. Technology Enterprise Commercialisation Scheme : This scheme, which is running since 2008, aims to facilitate the growth of technologically innovative global enterprises through the provision of early stage funding for R&D aimed at commercialisation of proprietary technology. The scheme has a focus on post graduates in Universities who have a scalable business model, but which is riskier and further away from the market. The scheme uses two stages of funding, a Proof of Concept Phase and a Proof of Value Phase. The proof of concept is aimed at start-ups or researchers from public R&D organisations, to demonstrate the technical/scientific viability of a technology. Costs are funded 100% up to a maximum of S$250,000 ( 150,000). In this case, although the grant can initially be to the university, a start-up company must be formed before the end of the project. The Proof of Value Phase is aimed at start-ups to do further R&D on successful POC projects. This phase should lead to a first working prototype and is funded at 85% up to S$500,000 ( 300,000) per project. Applicants are required to demonstrate proof of interest from a potential customer or third party investor. In 2010 23 new projects were supported, with a cumulative on-going support for 77 projects. Technology Innovation Programme : This is a range of funding programmes aimed at supporting the cost of technology innovation in local Singapore companies. It has three main components: o Funding for SMEs or consortia which consist of at least half SMEs, to undertake projects which involve the application of technology to develop or improve products, processes or business models. Typically projects are 50% funded, unless the project is a consortium project which has benefit beyond the consortium members, in which case it can qualify for 70% funding. o Centres of Innovation which are centres established in the polytechnics or research institutes, offering sector specific technology consultancy and PAGE 11
advice. At the moment there are 5 such centres in Food Innovation, Precision Engineering, Marine and Offshore Technology, Electronics, and Environment and Water. o A programme aimed at seconding technical experts into companies to help build the in-house capabilities of the company. Funding can cover up to 70% of the costs for a maximum of two years. This programme is run jointly with A*Star, typically the technical experts come from A*Star and the funding is provided by SPRING. Under its Financing programme, SPRING works closely with financial institutions to aid SMEs in accessing finance. The financing programmes include schemes for matching entrepreneurs to funding sources, loan insurance schemes, and provision of loans and micro-loans. Deal Flow Connection, which is an online service which facilities the matching of entrepreneurs with financing. The intention of the service is to provide a platform where entrepreneurs and SMEs seeking funding can get in contact with intermediaries and financing sources (government, venture funds, private investors, financial institutions). The Deal flow portal is run by DP Information Group (DP Info), Singapore's leading credit and business information bureau. SMEs pay a registration fee of $50 per year to access the portal. Under the loan Insurance Scheme, the government will pay 50% of the insurance premium required to insure a company s loans against default risks. The loans and micro loan schemes are run by participating financial institutions and banks. In addition to the above Spring Singapore also has more specific supports aimed at the development of innovative start-ups so that they grow into globally competitive companies. The programmes for start-ups include; Business Angel Funds : Spring co-invests with Angel investors in early stage companies through an equity based finance scheme. SPRING Start-up Enterprise Development Scheme (SPRING SEEDS): Spring invests in start-ups though an equity based co-financing model. Spring will invest up to $1 million on the condition of matching investment from other private investors. The investment is handled and managed by a wholly owned subsidiary, SPRING SEEDS Capital. Technology Enterprise Commercialisation Scheme (TECS) : Described above. 3.1 Youth Entrepreneurship Promotion SPRING Singapore has a particular emphasis on the promotion and development of entreneurship among young people and run two programmes specifically aimed at this, the Young Entrepreneurs Scheme for Start-ups (YES! Start-ups) and the Young Entrepreneurs Scheme for Schools. Singapore has had a focus on the development of youth entrepreneurship since 2004 when it introduced its Entrepreneurship Talent Development Fund which was meant to be a learning by doing support programme aimed at raising the next generation of Singapore s entrepreneurs. The aims of the programme were to increase awareness of entrepreneurship in both students and educators, inspire youths to be innovative and PAGE 12
equip them with entrepreneurial mindset and skills. This programme gave a grant of maximum S$50,000 ( 30,000) per student to start a business venture. The grant had to be matched S$1 from the business venture itself and S$1 from the student s school. Although the original programme had a budget of $25 million for 5 years, the take-up on the programme was relatively low and by the end of the programme in 2010 only $1.76 million had been paid out. Nevertheless the programme supported 48 student ventures, and 122 students. 13 of these ventures were still in business, with a combined total of 94 employees and greater than $10 million revenues. SPRING explains the lack of take up of the scheme as been largely due to the reluctance of the schools to fund the ventures, as this was not part of their core activities. Moreover although the programme supplied funding to student entrepreneurs it did not focus enough on igniting the initial interest in entrepreneurship. The programme was redesigned in 2008, so as to incorporate more promotion, awareness raising and mentoring initiatives in addition to the funding. This resulted in an emphasis on four different aspects, namely, Initiation to Entrepreneurship, Development of Ideas, Commercialisation of ideas, all underpinned by a National Promotion Effort. SPRING either directly runs or sponsors programmes which deal with all these aspects of youth entrepreneurship. For example, the Yes!Schools programme (see section 3.1.1), which is directly administered by SPRING, provides funding and mentoring to schools to run entrepreneurship education programmes. This is an example of a programme aimed at introducing students to entrepreneurship though education. An example of a programme aimed at the development of entrepreneurial ideas is the Ideas.inc. Business Challenge which is run by Nanyang Technical University, but sponsored by SPRING Singapore, which provides funding and mentoring to turn an idea into a business (see section 3.1.2). The YES!Startups programme, run by SPRING (see section 3.1.3) then provides the funding to actually support students to start a business. These programmes are all complemented by a national promotion effort. 3.1.1 Young Entrepreneurs Scheme for Schools: Yes!Schools The YES!Schools is a relatively new scheme, started in October 2008 which provides schools with grants of up to $100,000 to put in place a comprehensive structured entrepreneurship learning programme. Schools can apply for support to design entrepreneurship training programmes all the way from primary schools (9 12 year olds) to universities. There are different learning outcomes defined and expected from the programmes in the different age groups and it is expected that the programmes adopt a holistic approach, which cover all aspects of entrepreneurship (e.g. character development, relationship managements, and business and technical skills). YES!Schools is available to polytechnics, institutes of technical education, junior colleges, centralised institutes and secondary schools. Schools submit their project proposals to SPRING, who evaluate the proposals based on aspects such as Entrepreneurship and innovative elements, Holistic approach, Hands-on (experiential) learning component, Reach of project, and the use of Mentors. PAGE 13
There is very much a focus on supporting school programmes which have a hands on element involved. As of November 2011 the scheme had supported 100 schools, benefiting 25,000 students. The scheme also does promotion activities such as producing a quarterly newsletter. 3.1.2 Ideas.inc Business Challenge http://ideasincsg.com/ The Idea.inc Business Challenge is an example of a programme which helps turn student ideas into business concepts by combing developmental workshops, expert mentoring, and funding with the elements of a competition. This is a new programme, which is running in 2011/2012 and is run by Nanyang Technical University and aimed mainly at University students less than 26 years of age. Students are initially invited to submit a business idea to apply for the programme. After this they can attend workshops which are aimed at developing skills in business planning, marketing, intellectual property and accounting. After attending the workshops the applicants must submit an executive summary of their business idea on-line. These submissions are judged by a panel and 40 quarter finalists are chosen to pitch their business idea before the panel. From these 15 semi-finalists are picked. Each semi-finalist is awarded S$15,000 ( 9000) to complete a proof of concept, which involves registering a company and conducting feasibility studies and market research and developing a prototype. This phase is also supported by business skills workshops given by expert mentors. Out of the semi-finalists 6 final teams are chosen and these are awarded S$50,000 ( 30,000) for commercialisation. Out of these 6, 3 are finally chosen and awarded a prize money of S$100,000 ( 60,000). 3.1.3 Young Entrepreneurs Scheme for Start-ups (YES! Start-ups) The YES! Start-ups programme provides funding support of up to S$50,000 ( 30,000) for youths to set up their innovative start-up. Spring will provide 4:1 matching funding up to the maximum of $50,000. The other funding may come from self-financing, schools, or third party sources. The funding is supplied as a grant. Applicants must be below 26 years of age and be a first time entrepreneur. The company must be incorporated for less than 6 months, be engaged in high growth activities and be based in Singapore. From the government perspective the programme is regarded more as an educational programme in entrepreneurship than one designed to build companies it is more of a learn by doing programme. The mindset behind the scheme is that the investment is more of an investment in education than in business development, i.e. there is not a strong expectation that significant numbers of successful companies will be born. Nevertheless the programme seems quite successful. Since November 2008, 127 startup companies, involving 182 youths, have been awarded a total of S$6.32 million. These start-ups have generated approximately 160 new jobs, and have raised more than S$8 million in investment from third parties. The typical age profile of the students is in the 21 22 years age group, where they are in their 2 nd or 3 rd year in university. Interesting however, the students do not generally get any time out from their studies to start the business. PAGE 14
SPRING evaluates the proposals mostly internally, with a focus on the selection criteria, based on the innovation i.e. the USP, the revenue model, the market demand and the management team. All applicants are interviewed. The progress of successful candidates is tracked for 24 months after receiving the grant. Although quantitative data was not presented it was stated that the failure rate was about 10% after 3 years. It is also worth noting that the young entrepreneur development programmes of Spring are complimented by several programmes run by the Universities. Many of the universities also have incubators which further support the programme. An example is the National University of Singapore s (NUS) Enterprise Incubator, which in addition to the usual mentoring, networking activities, runs an internationalisation programme which provides start-ups an opportunity to gain access into global networks. For example the programme provides hot-desk and networking opportunities in Silicon Valley for promising start-ups. Experienced mentors and/or overseas business development managers work with these start-ups to help them establish links. The NUS also runs an overseas college programme, which places students in overseas start-ups for 9 months. This programme typically places 30 40 students per year in start-ups in Silicon Valley for example. This programme does not have a direct involvement from SPRING, other than assistance in the network building. It was stated that a very high proportion of such students go on to start companies themselves. 3.2 Service Delivery: The EnterpriseOne Approach www.business.gov.sg EnterpriseOne is an aspect of a support delivery system established and managed by SPRING in order to provide a one stop shop for SMEs needing to access government support. The EnterpriseOne scheme is very much focussed on providing an information and basic advice service to a very large number of micro-enterprises. As background Enterprises in Singapore can be segmented into: Micro-enterprises: Loosely defined as those with less than 10 employees and less than S$1 million turnover, of which there are approximately 123,000 in Singapore. SMEs: Less than 200 employees and S$100, million turnover, of which there are approximately 31,000. Large Companies: Of which there are approximately 1,600. EnterpriseOne was developed in response to the call in the early 2000s for a dedicated, one stop shop support service for SMEs, so that businesses did not waste time chasing different government agencies for support. The EnterpriseOne portal, which was set up in 2006, was intended to provide an online, self-help, information resource for SMEs, complemented by a hotline service. The mindset behind the approach is that there should be no wrong door for SMEs wanting to access government services and EnterpriseOne should represent the big main front door. EnterpriseOne stands for One Network for Enterprises and is a website bringing together a range of information, services and support for Singaporean business, including PAGE 15
business loans; grants; tax incentives and equity financing, from 30 different government ministries and public organisations. The service aims to be the first point of contact for SMEs. It aims to help local enterprises, start-ups, and aspiring entrepreneurs, as well as foreigners setting up businesses in Singapore. One of the main purposes is to provide basic support to a very large number of clients in an efficient way and hence to allow SPRING to reach out to a wider range of SMEs. EnterpriseOne is the interface between the Ministry of Trade and Industry/SPRING and Singaporean businesses. It is linked to the SPRING and the Ministry of Trade and Industry s websites. EnterpriseOne is managed by SPRING, and SPRING has flexibility in deciding how the portal works and is operated. The Website is supported by a network of 5 enterprise development centres (EDC), which offer further, basic, non-customised business and financial advisory services. These EDCs are set up as a partnership with industry associations and Chambers of Commerce. The 5 EDC are run by, the Association of Small and Medium Enterprises, the Singapore Chinese Chamber of Commerce and Industry, the Singapore Indian Chamber of Commerce and Industry, the Singapore Malay Chamber of Commerce and Industry and the Singapore Manufacturers Association. They provide a channel for SMEs to obtain professional advice on business upgrading, expansion, etc. Each EDC has a team of business consultants to provide legal, financial, management and business services. Each Enterprise Development Centre (EDC) is staffed by an average of 4 Business Advisors, of which 3 or 4 are degree holders. Most staff have consultancy experience either in business and/or operational management. The EDCs give 1 2 hours free business advice to companies, which is typically fairly basic advice on business and financial aspects. First level advisory services at the EDCs are free, including financing, HR, branding, marketing, IT and advice on availability and applying for government schemes and grants. EDCs may charge for more in-depth consultation. EnterpriseOne is a whole-of-government initiative. Initial funding came from the Ministry of Finance; thereafter recurrent costs to operate the portal are funded by SPRING. 3.2.1 Operation of the System EnterpriseOne essentially provides 3 levels of service, the website, the hotline and the EDCs. There are 3 officers managing the EnterpriseOne portal (i.e. content updates, new content development, implementation of new toolkits and features). A further 5 SPRING officers man the hotline call centre operations. The majority of these are diploma graduates. Officers are trained to diagnose SME s needs and answer telephone and email queries. For more complicated or case-specific enquiries officers escalate cases to relevant experts or agencies, and monitor the responses. The call centre receives an average 1200 to 1300 queries per month. Each Enterprise Development Centre (EDC) is staffed by an average of 4 Business Advisors, most of which have consultancy experience either in business and/or operational management. The entire EnterpriseOne service is therefore provided with approximately 30 staff. It is not compulsory for other agencies to have information on EnterpriseOne but many do find it useful to publish their regulations, assistance schemes and programmes on the site because the site has a good hit rate and the target audience of enterprises and entrepreneurs is similar to that of the agencies. PAGE 16
Contact Points in the various agencies liaise between the various government agencies and EnterpriseOne. Their key task is to keep the information on EnterpriseOne updated; however the updating of information to the site is performed by the EnterpriseOne webmaster. The site functions as a linked site rather than a true one-stop-shop because Government agencies already had their own websites and had already developed many useful e-services to serve enterprises. It was considered to be unfeasible to implement a true one-stop-shop integrating all the e-services. 3.2.2 Features Ability to do a quickfind search where the user is asked 4 questions and results show schemes that are relevant, with links to a webpage within EnterpriseOne, with a summary of the scheme, how to apply, and basic eligibility criteria. The following features can be accessed via the quickfind search: o Customised funding options o Customised Government assistance o Market statistics released by Government agencies o Business-related Government e-services o Relevant licences and permits The user can then follow a link from the summary page to an external website belonging to the government department or agency offering the scheme or programme. Once on the government site however it is generally necessary to telephone a contact at the agency and print out forms and post or email them to the relevant agency s fund manager. The due diligence process alone can then take 2-3 months. More than 150 How To guides, checklists and flow charts are published on the site. The entire Frequently Asked Question database has been uploaded and can be searched by typing in a question. EnterpriseOne has on-line applications for over 80 business licences from 17 government agencies through the Online Business Licensing Service whereby businesses can apply for their licences at any time and anywhere. Part of the application form is integrated and there is no need for businesses to re-submit generic data. There is a Productivity@Work micro-site which aims to raise awareness on productivity issues and encourage SMEs to increase productivity. The site exists in English and Chinese languages, with the Chinese version being maintained by the Singapore Chinese Chamber of commerce. Overall the main advantage of this system is the breadth of advice and links that a search can return, and the simple on-line questionnaires which filter results to ensure only relevant results are returned. For example, a search on quick find and funding options takes the user through 4 questions and returns a list of options which include information on different loans (including family loans), information on a SPRING Microloan Programme, advice on how to apply for loans, and other government assistance which can include links to the Tax Exemption for Startup scheme. These links then take the user to a webpage on the EnterpriseOne site, which is useful in that it gives a simple guide to eligibility. This then usefully links to the SPRING site or Inland Revenue site (in PAGE 17
the examples above) where the user can find out more and download application forms (in some cases applications can be filled out online). It is important to note however that EntepriseOne is not a full e-delivery service, but more of an information portal and access point for SMEs. For many actual applications to programmes there is still a need to complete paper applications. There may also remain the difficulty in determining which of the many programmes is suitable, although this information can probably be provided by the hotline or EDC. 3.2.3 Results and Impact In terms of access rate for the service, in 2011, there were 96,000 unique vistors/month, 980,000 page views per month and 7.9 million hits per month. The number of unique visits to the website increased 3 fold from 2006 and 2011. An evaluation was carried out in 2010, under the Government to Business (G2B) perception survey. This showed that customer satisfaction and awareness has been increasing year on year since the start of the service. Satisfaction with the overall quality of the website increased from 62% in 2007 to 82% in 2010. Awareness increased from 39% in 2007 to 50% in 2010. In addition 96% of businesses who contacted the EnterpriseOne helpdesk indicated that they were satisfied with the service. 95% of EDC customers rated the service at least satisfied and more than 75% rated the service good or excellent, in a 5 point scale from very poor to excellent. The site has won several awards within Singapore including the gold medal in the Singapore Government s first ever public service award for innovation in public services. 3.2.4 Success Factors & Lessons Learned It is considered by EnterpriseOne representatives that the key reasons EnterpriseOne is successful is that it provides, fast 24/7 access to government services and information with easy access to help though several channels, email, calling or visiting a centre. In addition the content of the site is rich and deep, covering a wide range of topics aggregated from different government agencies. A critical success factor is to have a strong top-down mandate from the ministry in order to make the approach work and ensure proactive co-operation from all the agencies involved. It is also important to have a strong on ongoing commitment to funding of the operation in order to keep it going as the information needs constant, monitoring, updating and revision in response to feedback in order to keep it relevant. Co-ordination of multiple partner agencies towards the common goal can give rise to tensions because agencies tend to have a single agency mindset. To make this work it is therefore very important to identify and involve the right stakeholders and have a well defined and effective governance structure. The work process has to be clearly defined and communication has to be open and regular. The EnterpriseOne initiative has a steering committee which meets every quarter, however operationally there is ongoing day to day contact among the contact people responsible in each agency. It can be a challenge to integrate such a wide range of information from a technology, content and process perspective with limited resources. Making use of available and proven technology is important to get the system up and running relatively quickly. It is critical of course to get the right people working as an effective team. PAGE 18
The service has a For the Customer, By the Customer attitude with a no wrong door mindset driving the interaction with customers. Great care was taken from the outset to write the website in a language which was simple, concise and easy to understand from the SME s perspective, i.e. to present the information in a way in which SMEs might relate to as opposed to way in which it might be structured within an agency. When putting the portal together the top concerns and needs of SMEs were gathered through telephone surveys, focus groups and interviews with more than 300 SMEs. This survey was initiated in 2004 and the site was launched in 2006. As a result the organisation of the information is based on what SMEs want, rather than an agency-specific approach. 4 A*Star SME Support Schemes A*Star is Singapore s main government agency, with the role of fostering and conducting world class research which is industrially relevant. A*Star operates 14 research institutes, 7 in the biomedical area under the Biomedical Research Council (BMRC) and 7 in Science and Engineering under the Science and Engineering Research Council (SERC). Under the five year plan, A*Star has a budget of approximately S$6.4 billion (over the course of the 5 years). In terms of staff A*Star has a community of 4,085; of which 223 work in A*STAR headquarters and the other 3,862 consist of scientists and researchers, technical and non-technical staff, and industry development and commercialization staff. Over the past 10 year A*Star has had very significant capital investment in the building of two research hubs, Biopolis for the Biomedical Research and Fusionopolis for the Science and Engineering hub which are located 600 metres apart. These campuses house the A*Star Research Institutes and consortia, co-located with private sector research labs and companies. The idea is that the public and private sector labs can thus share infrastructure such as equipment, core scientific services and conference facilities. The co-location of the research institutes with industry and in adjacent campuses has been planned with the concept of spurring interdisciplinary research and collaboration between researchers and industry. A*Star has a very strong emphasis on supporting and interacting with industry as part of its core mission. This interaction takes the form of setting-up and participating in Consortia typically aimed as pre-competitive research, joint one to one R&D collaborations with industry, provision of lab space within the research institutes and providing technology and Business incubation. The latter is handled though Exploit Technologies, the marketing and commercialisation arm of A*Star, described further below. In 2009 A*Star participated in 1200 industry projects and had approximately S$166 million ( 100 million) in industry funding. A*Star has also been instrumental in attracting and setting up large scale industry collaboration projects such as the A*Star Aerospace Programme or Roche s Translational Medicine Hub. These collaborations bring together large industry partners, A*STAR s research institutes and local SMEs in a consortium to collaborate on pre-competitive projects. A*Star also places a considerable emphasis on both attracting overseas research talent and on placing Singapore students in short term research placements overseas, with PAGE 19
several programmes aimed at this. In addition it is generally encouraging of staff transfers with industry. Traditionally researchers in A*Star have been 100% funded in their work, however recently (under the new 5 year plan) there are moves towards making more of the funding available on a competitive basis. For example since 2010 the Industrial Alignment Fund has been introduced under which 30% of a researchers funding depends on them having a definite interaction with industry. This Industry Alignment Fund is a S$1.35 billion fund which is jointly administered by A*Star and EDB, the broad aim of which is to get more economic returns for the investment in research by ensuring that researchers have definite industry collaboration. For example the bioscience RIs budget has been cut to approximately 70% of its previous budgets (to approximately $1.3 billion over 5 years) and they must compete for the other 30% though the IAF. The establishment of the IAF seems to have had a bigger impact on the Biosciences Institutes than the Science and Engineering institutes i. A*Star research institutes and researchers are measured on (all equally important) (1) training research scientists (2) intellectual capital produced, i.e. publications and patents (3) industrial Capital produced, i.e. working with industry and licenses. Although much of the support offered by A*Star does not necessarily have a bias towards any particular industry type such as SMEs or large companies or start-ups, A*Star does have several programmes which are aimed specifically at supporting SMEs. ( http://www.a-star.edu.sg/industry/overview/tabid/171/default.aspx) ; These include; Technology for Enterprise Capability Upgrading (T-Up): This programme is aimed at helping enterprises identify critical technologies and build in-house R&D capabilities. It essentially allows SMEs to engage/second research scientists from the research institutes to identify and implement R&D projects for up to 2 years. The programme is run in collaboration with SPRING Singapore and the Economic Development Board. The company can directly approach the research institute to identify a researcher. The A*Star Research Institutes match the SME request with a suitable researcher. The SME can make an application to SPRING, seeking funding to cover the secondment of the researcher (see the Technology Innovation Programme run by SPRING). To date, since its launch in 2003, 340 research scientists have been seconded to local companies. Operations and Technology Roadmapping : Under this programme A*Star s research institutes work with local companies to help them use roadmapping to identify technology that will improve their future product or service offering. The technology roadmapping is performed through 5 facilitated and customised workshops, developed by the companies key staff in collaboration with A*Star staff. Technical Advisor Scheme: Senior scientists from A*Star can advise companies on technology matters. Under this programme the company can get for free, the services of a technical advisor for half a day per month. Consulting time beyond this must be paid for. Facility Sharing Programme: A collaborative programme between A*Star and Spring Singapore which allows companies to gain access to equipment and facilities in the research institutes. PAGE 20
The study visit also included a visit to one of the A*Star research institutes, - the Singapore Institute of Manufacturing Technology (SIMTECH), which was not based at the Fusionopolis Campus, but rather at the Nanyang Technical University. SIMTECH specialises in the development of manufacturing technology underpinning a wide range of areas such as electronics, semiconductors, precision engineering, medtech, aerospace, automotive, marine, etc. The research institute takes a very active role in putting projects together with industry, and especially between large companies, A*Star and small companies. They seem to have a small group of people dedicated to this task, who try to put together projects which may involve several areas and researchers within the institute. The typical approach is to attempt to analyse the value chain for an industry, by talking with larger companies, understanding their needs and then communicating these needs to smaller companies perhaps through workshops. For example one of the main areas of operation for SIMTEC is in serving the local precision engineering companies, who are typically subcontractors to the larger multinational companies. It appears that SPRING and EDB have ad-hoc funding schemes which can be used to fund the industry participation in this type of activity. In terms of licenses SIMTECH generate about 20 30 royalty bearing licenses to industry per year. They also send about 20 people per year to work in industry. 4.1.1 Exploit Technologies Exploit Technologies is essentially the technology transfer arm of A*Star. It was founded in 2002 with the aim of providing the link between A*Star researchers and industry and actively promoting the commercialisation of technologies developed by researchers. Exploit is set up as a limited company and has the sole and exclusive right to license A*Star technology, although ownership of the IP is retained by A*Star. Exploit s activities go somewhat beyond the activities of the traditional technology transfer office in the areas of Intellectual Property Management, in that it has the discretion to provide gap funding for incubation and commercialisation of technologies, so that they can be turned into licenses or spin-offs. In its traditional IP management role Exploit provides prior art searches, patentability evaluation, filing and prosecution of IP applications, and maintenance of the IP. Exploit will also help in conducting the due diligence on technology disclosures, including identification of the specifications required by industry. Exploit also provides Technology and Commercial Intelligence, which includes the evaluation of the commercial potential of IP, identifying if it is suitable for further commercialisation funding though its GAP funding programme, and providing direction in terms of insights into emerging markets and applications to ensure that technologies are tuned to suit industry needs. In the area of Technology Incubation, Exploit works closely with companies to determine appropriate technical specifications and then directs the technology disclosures towards satisfying these. GAP funding of up to S$1 million ( 600,000) can be provided to researchers to further develop the technology to being commercial ready over a peri- PAGE 21
od of 3 to 12 months. Companies are given the option to license the technology if the development project is successful. Essentially Exploit is taking the risk of proving the technology to a commercial ready state. This can be particularly beneficial if the potential licensees are SMEs as they are generally not ready to take on the commercialisation of a technology unless it is proven. Exploit also operates a business incubation process, which attempts to identify new technologies at an early stage in the research and direct the development of these with commercialisation firmly in mind. These are likely to be technologies which can have multiple and cross-disciplinary applications and have the potential to grow into new industrial sectors. These are referred to as flagship projects and Exploit can provide S$3 5 million ( 1.8-3milliom) to fund the business incubation of these technologies. Researchers can submit a proposal to Exploit for this flagship funding. Exploit also work closely with large multinational companies to translate technologies into application, through a research collaboration agreement. In this case the company would license the technology from A*Star. Exploit maintains and advertises (through Tech Alerts and RSS feeds) a database of A*Star technologies which are ready for commercialisation. Exploit has a standard license agreement which it provides online, and licensing agreements can be concluded in a matter of weeks if companies agree to these standard terms. Exclusive or non-exclusive licenses can be granted, however exclusive licenses might only be granted in cases where technology requires substantial development, or investment. Exclusive licenses might typically be restricted to specific fields of use, geographic areas, and/or time periods. The right to further develop the technology is usually retained by Exploit and typically there is no exclusive access granted to any further future A*Star developments of the technology. Exploit looks at the IP portfolio and examines it for commercial opportunities. In doing this it doesn t have a particular bias towards the creation of spin-outs or serving SMEs as opposed to large companies as it needs to be aware of its mission to serve all industry through the licensing of IP. Licensing seems to be the more usual route for commercial exploitation, with spin-offs being the more unusual. Licensing terms to industry are generally flexible. In terms of the number of licenses more go to SMEs than large companies, however in terms of the value of licenses large companies account for the greatest share. Licensing is looked at in a flexible manner where the goal is very much financial benefit to Singapore as opposed to benefit to any one research institute or organisation and Exploit would be conscious that there must be a balance struck in this regard. Exploit currently manages a portfolio of over 3000 active patents, have granted over 250 licenses, and have a portfolio of 24 spin-off companies. The estimated business revenues arising from the A*Star licensed technologies is S$500 million ( 300 million). The total market value created though A*Star start-ups amounts to more than S$100 million ( 60 million). PAGE 22