International Network for SMEs INSME International Cooperation to Seize Innovation Opportunities for

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International Network for SMEs (INSME)Internatio
nal Cooperation to Seize Innovation Opportunities
for SMEs
13 15 April, 2005 Barcelona, Spain
TECHNOLOGY BUSINESS INCUBATORS AS A CATALYST TO
PROMOTE GROWTH FOR SMEs IN MALAYSIA
Presented By Dr. Mohd. Ariffin Aton President
and Chief Executive SIRIM Berhad, Malaysia
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Content

• 1. WAITRO and its Activities
• 2. SIRIM Berhad
• 3. Economic Productivity Drivers for Growth
  Competitiveness
• 4. Malaysian Economy
• 5. Definitions of SMEs
• 6. Technology Business Incubator as Catalyst of
  Growth
• 7. SIRIM Intervention in SME Development
• 8. SIRIM Incubator Setup
• 9. Key Success Factors

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1. WAITRO AND ITS ACTIVITIES

• WAITRO - World Association of Industrial and
  Technological Research Organizations
• Independent, non-governmental and not-for-profit
  association, established in 1970

MISSION To be the leading global network of
research and technological organizations through
collaboration and knowledge sharing for
sustainable development
SIRIM Berhad hosts WAITRO Secretariat since 2002
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WAITRO Activities

• Networking Session
• 17th Biennial Congress on Technologies for
  Sustainable Development, Kenya 2004
• Networking Session on management of research and
  technology organizations sharing experiences,
  India 30th August 2005
• Technology Transfer
• Workshop on Rapid Prototyping Technology, Egypt
  20004
• Intensive Workshop on Market Driven RD, Malaysia
  2004
• Knowledge Sharing
• RTO Management - e.g. Benchmarking of management
  processes of research and technology
  organizations
• Knowledge Management - Training on knowledge
  management
• Collaborative Projects
• Projects on food safety in Africa with EU funding.

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2. SIRIM Berhad
Established in 1975 under the SIRIM
(Incorporation) Act 157 under the Ministry of
Science, Technology and Innovation.
16th November 1995 SIRIM was corporatised as a
government-owned company under the Minister of
Finance Incorporated.
1, Persiaran Dato Menteri Section 2, 40911 Shah
Alam Selangor, MALAYSIA HQ area gt50
acres Offices 8 Branch Offices Subsidiary 2
wholly-owned subsidiaries
1st September 1996 SIRIM Berhad was fully
operationalised.
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SIRIM Berhad Core Activities
CORE ACTIVITIES
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SIRIM Off-Site Facilities and Branch Offices
Kulim AMREC
LIAISON OFFICE-KOTA BARU
KOTA KINABALU
BUTTERWORTH
KUALA TERENGGANU
IPOH
Rasa RAMET
KUANTAN
SHAH ALAM
KUCHING

• Sepang
• Incubator SMI
• National Metrology Laboratory

MELAKA
JOHOR BAHRU
LABORATORY / CENTRE
BRANCH OFFICES
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3. Economic and Productivity Drivers for Growth
Competitiveness
Key Productivity Drivers
Increased Growth competitiveness
Economic Drivers
World-leading MNCs (FDI)
New High-Tech Ventures
Competitive National Industries
SMEs As Support Industries
RD Support System
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(No Transcript)
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Integration of Science, Society and Economy for
Sustainable Development
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4. Malaysian Economy

• In 2004 Malaysian economic expanded by 7.1
• Expected Growth for 2005 is 5.5
• Supportive of growth with policies targeted at
  enhancing the business environment
• Efforts to nurture the development of small and
  medium enterprises (SMEs)
• SMEs is a national agenda towards creating
  economic resilience

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5. Definition of SMEs
Exchange 1 USDRM3.80
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TBI as catalyst for SME growth in Malaysia

• Smart Partnership
• National Incubation Network Association (NINA)
• Research Institutions
• Universities/Institutions of Higher Learning
• Donor/Funding Agencies
• Implementing Agencies
• Centres of Excellence

Vision 2020
Meeting the National Vision

• Global Players
• Knowledge-based technopreneurs
• Competency-based technopreneurs

8th Malaysia Plan (2001-2005)
Spin-Off
Year 2002 - Incubator Hub ( Techno-Business
Incubator Centre)
2010
Year 2001 - Satellite Incubators
2005
Year 2000 2nd Generation Technology Incubator
Scheme
Year 1986 - 1st Generation Technology Incubator
Scheme

• Meeting National Policy and Agenda on
  Entrepreneur and SME Development
• Meeting International Policy on Malaysian
  Technical Co-operation Program (Sharing of
  Experience Technology Transfer to other
  Developing/3rd World Countries)

Technology Incubator Objectives
Spin-Off
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National Incubation Network Association (NINA)

• The National Incubator Network Association (NINA)
  was formally established on 9th January 2004 with
  the following objectives
• To continuously improve the State Of Business
  Incubation in Malaysia through effective
  benchmarking exercises and adoption of "Good
  Practices".
• To gradually improve the perception of Business
  Incubation and justify it as an effective
  economic development tool.
• Membership 20 odd Incubator operators (both
  public private incubators)

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6. Technology Business Incubator as
Catalyst of Growth

• Works closely with the Technology Centres to help
  clients identify and license SIRIM Berhad
  technologies for commercial application
• Taps technical and business and
  technology-related resources at universities and
  research organizations for innovative technology
  to help clients fill gaps in their business and
  technical expertise
• Provides hands-on and technical training skills
  in technology and quality to help clients with
  their production process, product design and
  packaging, quality control and testing services
  in the early stages of a new endeavour

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6. Technology Business Incubator as
Catalyst of Growth (continue)

• Offers a structured and conducive environment
  that helps entrepreneurs maintain focus on their
  long and short-term goals
• Provides advisory services on technology,
  quality, management, financial, marketing,
  intellectual property advice and other
  disciplines, business plan assistance, government
  services as well as facilitating registration,
  taxes, and other regulations, access to funding
  and seed money, etc. and
• Works closely with supporting government agencies
  and companies creating synergies for sharing and
  networking, among clients and with local
  businesses

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SIRIM Incubator Model
Phase I Entrepreneur
Development Phase
Phase II Enterprise Creation
Phase
Phase III Market Development Phase
SIRIM Technology Incubator Program

• Skills Development

• Networking Linkages

• Facilities Services

• After-Care Service

• Technology Transfer Consultancy Services

• Advisory Services

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7. SIRIM Intervention in SMEs Development

• Other Enterprise Development Programs
• Collaboration with Local/International Agencies

Evaluation
Enterprises/ Entrepreneurs
Information

• International
• TBT WTO
• Standards Info
• IP

Manufacturing Extension

• Technical Information Services
• IP

Seminar/ Workshop

• National Quality Scheme
• Product Certification
• ISO 9001,EMS ISO 14001
• TS 16949, OHSAS 18001
• HACCP, GMP, etc

ITAF
Counselling
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Product/ Process Development

• Quality Improvement Practice (QIP)
• Quality Management Services (QMS)

Insufficient in Quality System

• Courses/Trainings
• Led Consultancy
• ICC/SPC
• QMS Documentation
• IQA

SMEs Development Input
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Product/ Process Improvement
Manufacturing Extension Advisory
Services (operate outside SIRIM Campus)
ITAF, IGS, MGS, CRDF, TAF Technology
Centres Incubator SMI Dev Dept
Incubator (Off- campus)
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Incubator (On-Campus)

• r D
• Prototyping
• Testing
• Trial production
• Small Scale Production
• IP

Productivity Quality Improvement
Not Enough Basic Facilities, Technical
Technological Capabilities, Capital (operate in
SIRIM Campus)
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Product/Process Development/ Improvement
Marketing
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Technical/Technology Competency
Technology Transfer

• Courses/Training/ Workshop/Seminar
• Technology
• Quality
• Management

Lack Technical/Technological Knowledge/Know-How
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CEFE Programs/ Modules
Technology Assessment
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Graduate Attachment Scheme
Other Services
Potential/Would Be Entrepreneurs
0
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8. SIRIM Incubator Setup
Satellite Incubator (Jalan Beremban)
Incubator Satellite (SIRIM Branch Offices)
Incubator Hub (Techno Business Incubator Centre,
Sepang)
Off-Campus Incubator (Virtual)
Satellite Incubator (HQ in Shah Alam)
Entrepreneurs Premises
University Premises
On-Campus Incubator (Satellite Hub)
Factory Space owned by Financial Institutions
Factory Space owned by Govt Ministries/Agencies
Off-Campus Incubator (Virtual)
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9. Key Success Factors

• Continuing Government Support and participation
• Experienced Incubator Management
• Collaboration and Networking
• Tenant Entry and Exit Criteria Clearly Defined
• Establish Well-defined Targets
• Conducive Business Environment
• Linking Business and Technology

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• THANK YOU
• FOR YOUR ATTENTION