Commercialization of Nanotechnology Research by R&D Institutes in Malaysia Dr. Abdul Kadir Maasrom Undersecretary, National Nanotechnology Directorate, Ministry of Science, Technology and Innovation (MOSTI)
Contents Introduction Malaysian R&D Landscape MOSTI I&P Division Technology Commercilisation Malaysian Performance in Commercialisation MOSTI R&D&C program and Funding Support for Commercialisation Commercialisation agencies Malaysian Actives NT research and commercialisation: RIs and University MTDC and TPM Commercialisation for NT products NanoMalaysia Berhad Mosti Commercialisation Year (MCY2014) 22/08/2014 APCTT W/Shop, Manila, 2014 2
MOSTI 22/08/2014 APCTT W/Shop, Manila, 2014 3
Introduction Governments around the world are increasingly recognizing that promoting technology transfer and commercialization are keys to an innovative economy, leading to wealth generation and job creation. Problem: Most public sector researchers initiate projects without sufficient technical and market data, which limit the success in commercializing of research results Solution: The alliance between university and industry will bring a major breakthrough in commercializing intellectual property for the benefits of all 22/08/2014 APCTT W/Shop, Manila, 2014 4
Malaysia R&D The scientific community has come under pressure of late to deliver the promises of R&D. Nation's investment in R&D has yet to match those in the highly developed economies. However amount allocated is still substantial. Now, the country invests around 1% of gross domestic product on R&D. Developed countries consistently invest to the tune of 2-3% of GDP. contribution by industry can reach up to 70 per cent. Malaysia: more than 80 per cent of the R&D spending comes from government coffers. Will this change in the coming years? 22/08/2014 APCTT W/Shop, Manila, 2014 5
Innovation performance Malaysia s innovation performance is in line with that of other middle-income countries in the Southeast Asian region, but shows a significant gap with high income countries Malaysia has yet to enter a stage of innovationled growth This are the focus for 11 th MP ( under drafting) 22/08/2014 APCTT W/Shop, Manila, 2014 6
Research Spending and GERD Spending on research and development (R&D) in Malaysia rose over the last two decades but remains low when compared internationally. Gross expenditure on R&D (GERD) grew from 0.50% of GDP at the beginning of the decade to about 0.64% at present (Table 2.3). In 9th Malaysia Plan GERD dropped to just 0.21% of GDP in 2008 due to the global financial crisis and the rapid increase in oil prices which affected Malaysia s economy. The government now aims to ensure that investment in R&D reaches at least 1% of GDP by 2015, which is a decrease from the previous target of 1.5% of GDP by 2010 in the 9th Malaysia Plan. The private sector share of R&D expenditures has increased to over 50% led by the large multinationals, although the overall level of their research spending is small by global standards. 22/08/2014 APCTT W/Shop, Manila, 2014 7
Public Research Organizations In general, Malaysia s public sector research is characterized by too many areas of funding and multiple institutes as well as being driven predominantly by the interests of researchers. 29 public research organisations 4 are under MOSTI ( SIRIM, NIBM, MIMOS, Nuclear M sia) remainder are departments or institutes of the sectoral ministries. Most of these institutions have a sector focus and MOSTI has no direct authority in determining their research agendas. Malaysia s public research organisations (PROs) perform mainly downstream or applied research, rather than basic or experimental research, in order to be relevant to their target customers or to satisfy their departmental remits. 22/08/2014 APCTT W/Shop, Manila, 2014 8
Commercialization of Nanotechnology Research by R&D Institutes including universities Despite numerous public research institutes and universities involved in R&D, their contribution to industrial development in Malaysia is limited due to poor linkages and collaboration. RI s and university unable to commercialised their research results Relaying on MOSTI s agencies MDEC NMB MTDC MOSTI Commercialisation Agencies TPM Biotech Corp 22/08/2014 APCTT W/Shop, Manila, 2014 9
MOSTI Roles in Commercialisations The Ministry of Science, Technology and Innovation (MOSTI) is responsible for the coordination and promotion of science and technology. 9MP:2006-2010, the Government has undertaken to consolidate the National Innovation System and encourage the commercialization effort of R&D projects funded by the public sector. MOSTI is assisted in this task by; National Council for Scientific Research and Development and The main function is primarily to advise the Government on scientific and technological matters. Coordinating Council for the Transfer of Technology. 22/08/2014 APCTT W/Shop, Manila, 2014 10
Innovation & Commercialisation Division (I&P) I&P Division in MOSTI was established in December 2007 to help the Government to achieve the objectives as stated under MOSTI s innovation and commercialization programmes. Its establishment was a result of a merger of the Strategic and Commercialisation Division (S&P) with the Innovation Sub-Unit which was previously under the Technology Management Unit (UPT). 22/08/2014 APCTT W/Shop, Manila, 2014 11
Objectives of I&P Division The objectives of I&P Division are to : Support efforts toward enhancement of the national innovation capability Increase the commercialisation rate of research activity and public sector development Functions There are 2 sections under the I&P Division, namely Innovation Section and Commercialisation Section. 22/08/2014 APCTT W/Shop, Manila, 2014 12
I&P: Innovation Section comprises of 2 units as follows: National Innovation Council (NIC) Unit To administer NIC meeting and working committee under the Council; and To plan, coordinate and monitor the implementation of the National Innovation Policy. Innovation Promotion and Development Unit To plan and coordinate the innovation programme under the National Innovation Agenda. To provide advisory services for innovation programme or activity at agency or state level. To plan and coordinate National innovation award, conference, workshops & showcase. To manage studies on innovation as needed; and To set-up strategic networking and assist in coordination of cooperation initiatives with national and international innovation bodies/institutes. 22/08/2014 APCTT W/Shop, Manila, 2014 13
I&P:Commercialization Section Intellectual Property Unit To drafts the Guidelines on Commercialization of Intellectual Property of Public Sector s R&D Funded By The Government; To provides advisory service, assists and facilitates researchers and inventors to obtain Intellectual property protection; To assists in the management of commercialization of Intellectual Property activities arising from R&D carried out by research institutions which received funding from the Government and Electronic Government Applications; and To oversee the implementation of the Guidelines on Commercialization of Intellectual Property of Public Sector s R&D Funded By The Government. Business Development Unit comprises of 2 units as follows: Identifies and match makes potential R&D projects to be commercialised with the industry; and Works closely with the Fund Unit of MOSTI and Venture Capital companies (MTDC, MAVCAP AND MDV) in the aspect of funding to enhance commercialisation activities; 22/08/2014 APCTT W/Shop, Manila, 2014 14
Gov. Company for Commercialization Sectoral BioTech Corp - Biotechnology NanoMalaysia Berhad Nanotechn. Multi Media Development Corp (MDeC)- ICT Green Tech Corp Green Technology 22/08/2014 APCTT W/Shop, Manila, 2014 15
Technology Commercilisation Technology commercialization is the process of moving research results from a research place to a successfully marketable product. Commercialization is often thought of as an orderly series of steps; building a prototype, testing its feasibility, and progressing to completing product development and design. The ability to move a technology from to market quickly and efficiently is crucial in transferring technologies from public laboratories. 22/08/2014 APCTT W/Shop, Manila, 2014 16
Malaysian R&D Commercialisation Performance Sixth and Seventh Malaysia Plans: 5232 projects implemented by the public research institutions and universities 14.1 percent of these projects were identified as potential candidates for commercialization only 5.1 per cent was commercialized (Eighth Malaysia Plan). 22/08/2014 APCTT W/Shop, Manila, 2014 17
Malaysian R&D Commercialisation Performance Ninth Malaysia Plan (2006-2011): level of technology commercialization 3.2%( 10% International Standard for rates of commercialisation 10%) of the total projects during 9 th MP, Despite numerous funding incentives added in the Ninth Malaysia Plan, the success rate of technology commercialization is still not meeting the targets set by the government. 22/08/2014 APCTT W/Shop, Manila, 2014 18
R&D Spending brekdown by Sectors 22/08/2014 APCTT W/Shop, Manila, 2014 19
Total Spending (RM mil) National R&D Studies R&D Spending, 2000-2011 Total Spending (RM mil) 22/08/2014 APCTT W/Shop, Manila, 2014 20
Number of Researchers 22/08/2014 APCTT W/Shop, Manila, 2014 21
Malaysian R&D Commercialisation Performance In the past three Malaysia Plans, the nation has invested RM4.8 billion to fund various R&D projects and managed to generate an income of RM5.12 billion. In the ninth Malaysia Plan (2006-2010) 1,189 projects approved 311 projects have been commercialised contributed approximately RM2.6 billion to the nation. For 10MP, rate of commercialisation was expected to exceed 4 percent and 5% by 2015 10 Malaysian companies that received R&D funds from the Malaysia R&D Grant Scheme (MGS) are now listed on the local exchange and the London Stock Exchange with total market capitalisation of RM938 million. 22/08/2014 APCTT W/Shop, Manila, 2014 22
MOSTI Target for 2014-2020 NEW KPI The Ministry of Science, Technology and Innovation (Mosti) anticipates the rate of commercialisation of research and development (R&D)-based products to go up to 10%-15% by 2020, from 8% currently(2014), through its intensive MOSTI Commercialisation Year 2014 programme (MCY2014). 22/08/2014 APCTT W/Shop, Manila, 2014 23
What are the issues? R&D Funding Eco System R&D at public university Getting technology to market is not their priority Concentrates on publishing research papers for promotion personnel achievement Not commercialising IP Need to change mindset Transformation 22/08/2014 APCTT W/Shop, Manila, 2014 24
National Innovation System (NIS) Components 22/08/2014 APCTT W/Shop, Manila, 2014 25
National Innovation System (NIS) Components 22/08/2014 APCTT W/Shop, Manila, 2014 26
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MOSTI Funding Ecosystem for R,D & C IDEATION APPLIED R&D PRE- COMMERCIALISATION COMMERCIALISATION Types of programme Pre R & D process Priority Setting Technology Scanning Value Analysis Concept/ Idea Basic R & D Applied R & D Prototype Development Pilot Plant Commercial Ready Prototype Incubator/ Early Growth Matured Level Value Realization Types of fund available during 10 th MP Biotechnology R&D Initiatives (9 th MP) Techno Fund CRDF MSC Pre-seed Fund (9 th MP) ScienceFund BRAIN GAIN InnoFund NANOMALAYSIA PROGRAMME 22/08/2014 APCTT W/Shop, Manila, 2014 e-content Fund (9 th MP) TAF BIOTECH COMMERCIALISATION FUND 29
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10th Malaysia Plan Ministry of Higher Education R&D Schemes (Source: MOHE) 22/08/2014 APCTT W/Shop, Manila, 2014 34
2013: Game-Changing Innovations: Flagship Programs Focused, High Impact & Game- Changing 4 Flagship Programmes (NSRC) - Medical & Health Care, -Energy Security, - Food Security -Biodiversity Malaysia as a Technology Leader Funding 70% (Flagships): 30% (others) 22/08/2014 APCTT W/Shop, Manila, 2014 35
Medical & Healthcare Food Security Biodiversity Energy Security B: Funding to Support Flagship Programmes R,D&C Project Approved 2014 ICT based system for medical & healthcare Rice Security Biomethane Thorium 22/08/2014 APCTT W/Shop, Manila, 2014 36
Support mechanisms required all along the commercialisation chain IDEATION APPLIED R&D PRE- COMMERCIALISATION COMMERCIALISATION Upstream (R&D Institutions Technologies, Patents, Prototypes, Pilot Plants) Flagship Programs Downstream (Monetisation, Manufacturing, Business Ventures, Marketing) MOSTI Commercialisation Year 2014 and Commercialisation committee MyIPO, SIRIM, MIMOS, ANM Universiti dan RIs 22/08/2014 APCTT W/Shop, Manila, 2014 NanoMalaysia, BiotechCorp, MTDC MDV, MAVCAP 37
Technology Sustained Transfer Innovation in the sustainable Requires Innovation the Ecosystem Right Leadership, Structure & Allocation of Resources Research support Regulatory & policy Innovation & discoveries Talent Government s R&D Institutions job creation economic growth public service mission equity return Center of Excellence Management Funding Investors Start-up /SME deal flow de-risking Market expertise Early stage funding Established Companies Technology M&A Adapted from QB3 ecosystem model Triple Helix Model 22/08/2014 APCTT W/Shop, Manila, 2014 38
University Model for Commercialisation of R&D Results 22/08/2014 APCTT W/Shop, Manila, 2014 39
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RI and Universities active in NT research and commercialisation NND COE Research University GLC/CLG 22/08/2014 APCTT W/Shop, Manila, 2014 41
Research Institute active in NT and commercialisation MOSTI s RIs Other RIs GLC CNT and Graphene 22/08/2014 APCTT W/Shop, Manila, 2014 42
National Innovation System (NIS) Components NMB BioTech Corp Dedicated 22/08/2014 APCTT W/Shop, Manila, 2014 43
MTDC Malaysian Technology Development Corporation (MTDC) has been set up to increase the rate of commercialization in Malaysia, especially the R&D outputs from the public sector. A program called Symbiosis has been formulated specifically to increase the commercialization rate of public sector R&D, using spinoffs as the vehicle. Introduced in 2008 with a leading research institute in Malaysia the programme has now involved five organisations, 150 graduates and fifty technologies. To date, through the programme, fifty spin-off companies have been formed, all led by technopreneurs trained through the programme. 22/08/2014 APCTT W/Shop, Manila, 2014 44
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MTDC-Incubator Program 22/08/2014 APCTT W/Shop, Manila, 2014 52
Technology Park Malaysia Corporation (TPM) Technology Park Malaysia Corporation (TPM) in Bukit Jalil was established almost 20 years ago, TPM was given the mandate to be the halfway house for R&D going to market by providing shared facilities. 22/08/2014 APCTT W/Shop, Manila, 2014 53
Technology Park Malaysia in Bukit Jalil has the space to house a thriving community of research scientists, venture capitalists, intellectual property experts and business entrepreneurs. 22/08/2014 APCTT W/Shop, Manila, 2014 54
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A nanotechnology commercialisation ecosystem that is competitive, innovative and sustainable Technology and Business Due Diligence Services Nanotechnology Landscaping and Business Opportunities Strategy Planning & Consultation for Commercialisation & Industrialisation of Nanotechnology R&D Development of Human Capital in Nanotechnology Facilitation of Investment in Nanotechnology 22/08/2014 APCTT W/Shop, Manila, 2014 57
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In view of the urgency improve the return of investment for the nation's R&D, the Ministry of Science, Technology and Innovation (MOSTI) has just declared 2014 as the Commercialisation Year. Various programmes are under way to promote and publicise the need to raise the nation's R&D commercialisation rate. At the same time, MOSTI is looking at taking steps to enhance the nation's ecosystem for R&D commercialisation. 22/08/2014 APCTT W/Shop, Manila, 2014 62
MCY2014 The Ministry of Science, Technology and Innovation (Mosti) is targeting to commercialise 360 research and development (R&D) products by 2020 This initiative provides opportunities to technopreneurs to commercialise their research and development (R&D) products while addressing key issues of commercialisation Mosti Commercialisation Year 2014 programme was being implemented to help local companies and institutions of higher learning market their R&D products Mosti has drafted nine initiatives comprising three components namely technology commercialisation platform, promotion and ICT. Industries in focus for the commercialisation purpose would be healthcare, biotech and Nanotech energy sector. 22/08/2014 APCTT W/Shop, Manila, 2014 63
MOSTI Initiatives - MCY2014 4. Facilitation for access to infra 5. R&D Info Portal 6. R&D Products Directory 3. Facilitation access to market 2. Products Dev. Program 7. R&D Gallery 8. Techshoppe 1. Capability Building Program 9 Initiatives 9. Special Car Plate Number 22/08/2014 APCTT W/Shop, Manila, 2014 64
Target of MCY (Previously, per year we only manage to commercialise about 20 products that had gone through intensive R&D works) To increase rate of commercialisation of (R&D)-based products to go up to 10%-15% MOSTI has taken the challenge to commercialise a minimum of 60 products per year to both domestic and international markets include nanoproducts 22/08/2014 APCTT W/Shop, Manila, 2014 65
MCY R&D Product Gallery MOSTI to build dedicated gallery to exhibit the latest R&D products waiting to be commercialised Such a gallery will allow investors and the business community to meet and discuss possible commercialisation ventures with the owners of the R&D outputs. 22/08/2014 APCTT W/Shop, Manila, 2014 66
MORE COMMERCIALISATION OF PRODUCTS IN 2014: The Ministry of Science, Technology and Innovation (Mosti) anticipates the rate of commercialisation of research and development (R&D)-based products to go up to 10%-15% this year, from 8% currently, through its intensive Mosti Commercialisation Year 2014 programme (MCY2014). Minister Datuk Dr Ewon Ebin says to achieve the target, Mosti has taken the challenge to commercialise a minimum of 60 products per year in both domestic and international markets. Mosti Deputy Minister Datuk Dr Abu Bakar Mohamad Diah (left) and Ewon trying out electric motorcycles yesterday after the launching of MCY2014, organised by Malaysia Biotech Corp, at SIRIM Bhd premises in Shah Alam. 22/08/2014 APCTT W/Shop, Manila, 2014 67
Conclusion Attempts of Malaysian government in commercialisation NT and other research products encountered many challenges Rethinking and transformation of the way commercilisation funds were utilised Improved on Industry-university/Research institutes linkages Structuring of internal IP management and institutional effectiveness to enhance success rate of commercialisation MOSTI Commercialisation Year (MCY2014) MOSTI introduced 9 initiatives to act as framework to boost commercialisation activities - promotions and facilitations Expecting 60 products peryear and targeting 10-15% commercialisation rate per year 22/08/2014 APCTT W/Shop, Manila, 2014 68
Thank you for listening 22/08/2014 APCTT W/Shop, Manila, 2014 69