Innovating for Global Competition: Singapores Pathway To HighTech Development

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Innovating for Global Competition Singapores
Pathway To High-Tech Development

• Henry Wai-chung Yeung
• Associate Professor in Economic Geography
• Department of Geography,
• National University of Singapore
• (Email HenryYeung_at_nus.edu.sg
• Homepage http//courses.nus.edu.sg/course/geoywc/
  henry.htm)

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Innovating for Global Competition Singapores
Pathway To High-Tech Development

• Outline
• Introduction
• Innovation and High-Tech in Singapore
• Developing RD Capabilities Through Science
  Parks
• Harnessing the SME Advantage
• Nurturing Cluster Development
• Conclusion

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1. Introduction

• The new institutionalism perspective on regional
  economic development clusters and innovation
  systems
• the role of local institutions
• the broader urban and regional structures
• Main arguments Singapores changing pathways to
  high-tech economic development
• the role of state institutions in the national
  system of technological innovation
• deliberate strategies for high-tech promotion

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2. Innovation And High-tech In Singapore
Changing Pathways To Economic Development Since
The 1980s

• Continual significance of manufacturing
  industries
• Significant role of foreign capital
• Regionlization of economic space

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Asia Map
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3. Developing Rd Capabilities Through Science
Parks

• The National Technology Plan in 1991 a
  technology corridor through the spatial
  integration of science habitats, business parks
  and tertiary institutions
• The Singapore Science Park in 1980
• According to the former managing director of
  Arcasia, the Park was literally a brainchild of
  the former chairman of the Jurong Town
  Corporation
• Before the 1980s, there was very little research
  job being done in Singapore. Singapore was
  basically a production base. At that time, the
  Government realised that Singapore cannot just
  depend on production. Production requires low
  cost in order to be attractive and hence RD was
  introduced into the Singapore environment. There
  was no venture capitalist at the time doing RD
  when we started. There was no budget even in the
  then National Science Council to carry out RD
  work. There were only a few people running it.
  EDB and JTC were contemplating about this idea of
  RD. The then Chairman of JTC found that the
  opportunity to get some attention on Science
  Parks is very great. Out of the blue, he sold the
  idea of Science Park without going through the
  proper channels. He was taking a risk. To him,
  you should strike the iron while it is still hot.
  It was around 1981 and 1982. He said it should be
  located near to the National University of
  Singapore. We then have to look for the land in
  order to develop. At that time, this piece of
  land was occupied by the Army. Due to the good
  publicity, the entire process got started. In the
  shortest possible time, we managed to get the
  Army to vacate. We then set up this Science Park
  after going overseas to look at about 10 science
  parks (Interviewed on 16 December 1998).

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3. Developing Rd Capabilities Through Science
Parks

• The Singapore Science Park in 2000
• 65-hectare Park (I, II and III) more than 200
  institutions registered as research facilities
  (307 companies in total in 2000)
• Key locational factors image and infrastructure
• Collaborative efforts among tenants encouraging
  but mostly one-off basis

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4. Harnessing The SME Advantage Reverse
Technology Flows And Foreign TNCs

• SMEs as developmental providers of locally
  specific expertise and soft technology to TNC
  customers
• Performance of local SMEs in Singapore
• Building supplier relationships with TNC
  customers findings from a 1999 survey
• both price and quality are important
  considerations
• good ratings of Singapore SMEs reciprocal
  relationships between SMEs and TNCs

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5. Nurturing Cluster Development The Chemical
Industry Cluster In The Jurong Island

• Complex evolution of Singapores chemical
  industry cluster
• The Manufacturing 2000 Programme
• cluster approach to industrial development
• S1billion Cluster Development Fund by the EDB

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5. Nurturing Cluster Development The Chemical
Industry Cluster In The Jurong Island

• Chemical TNCs in the Jurong Island cluster a
  1999 survey of 30 checmical TNCs
• access to specialized inputs and employees
  importance of raw materials for 16 of the
  respondents (53.3 n30)
• For JAPSpecialty to provide high value-added
  products and services to its customers, the
  company must in turn depend on the efficiency of
  its suppliers for success. According to the
  general manager, by having local suppliers, we
  can be quite sure that the follow-up is there and
  we can get a consistent supply of raw materials
  (Interview, 2 March 1999). The point here is that
  the benefit of spatial proximity to JAPSpecialty
  is not availability of raw materials per se, but
  rather trust and cooperative relationships with
  its suppliers.

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5. Nurturing Cluster Development The Chemical
Industry Cluster In The Jurong Island

• Chemical TNCs in the Jurong Island cluster a
  1999 survey of 30 checmical TNCs
• availability of extensive market, technical, and
  other specialized information RD activities by
  20 respondents (67 n30)
• accessing public goods and institutions main
  advantage for 20 respondents (66.7 n30)
• e.g. access to common-user facilities such as
  jetties and berths, storage and terminalling,
  plant utilities and industrial gas plants

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6. Conclusion

• State intervention developing a unique
  repertoire of innovative capacity in various
  sectors and clusters of the national economy
• Singapores national innovation and technological
  system a highly coordinated and managed system
  that brings together contributions from the
  developmental state, foreign TNCs and local
  enterprises
• The future of Singapores high-tech development
• building institutional capacities
• political credibility and policy consistency
  continuous remaking of the Singapore
  political-economy