RESEARCH AND DEVELOPMENT (R

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RESEARCH AND DEVELOPMENT (RD) GRANT SCHEMES

• Science, Technology and Innovation (STI) Division
• Ministry of Science, Technology and Innovation
  (MOSTI)
• Presenter Mohd Zahit Ali

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CONTENTS 1. INTRODUCTION 2. RESEARCH
STRATEGIES 3. TYPES OF GRANT SCHEME 4. CONCLUDING
REMARKS 5. Q A
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• STRATEGIES
• Focus areas
• Enhance the quality of research
• Provides funding throughout RD value chain
• Enhance management of the funding schemes and
  monitoring of projects
• Strengthen institutional framework

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THE SECOND NATIONAL SCIENCE AND TECHNOLOGY POLICY
(STP2) AND PLAN OF ACTION (2001 - 2010)
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Seven Strategic Thrust Areas

• Strengthen research and technological capacity
  and capability
•  
• Promote commercialisation of research outputs
• 3. Develop human resource capacity and
  capability
• Promote a culture for Science, Innovation and
• Techno-entrepreneurship

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•  
• Strengthen institutional framework and management
  for ST and monitoring of ST policy
  implementation
• Ensure widespread diffusion and application of
  technology, leading to enhanced market driven RD
  to adapt and improve technologies and
• 7. Build competence for specialisation in key
  emerging technologies.

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GOVERNMENT RD FUND, VALUE CHAIN (8 MP)
RD
COMMERCIALISATION
Applied RD
Pilot Production
Early Growth Production
Mature Production
Basic RD
Labs/ Engineering Prototype
Concept/ Idea
Market Needs

• MOSTI/ MTDC
• CRDF
• TAF
• TAF-W

MHL ( Research Allocations for IPTA )

• MOSTI
• IRPA (EAR,PR,SR)
• IGS
• MGS
• DAGS
• NOD
• BIOTECH
• SAGA

MOF- MAVCAP Cradle
MOF (Venture Capitalists, MAVCAP, Banks,
Industries, other financiers.)
BUSINESS DEVELOPMENT UNIT
GAP
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THE NEW LINEAR RDC VALUE CHAIN (9 MP)
RD
COMMERCIALISATION
PRE-RD
PRE-COM
Incubation/ Early Growth
Value Realisation
Prototype Development
Mature Stage
Pre-RD Process
Value Analysis
Concept/ Idea
Basic R
Applied R
Pilot Plant / CR Prototype
ScienceFund
Priority Setting, Technology Scanning
TechnoFund
CRDF,TAF/ TAF-W
InnoFund
VCs, MAVCAP,MOF, Industries
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MP-5 (1988-1990) MP-6 (1991-1995) MP-7 (1996-2000) MP-8 (2001-2005) MP-9 (2006-2010)
4 sectors Agriculture Health Industry Strategic Grant Management Treasury 5 sectors Agriculture Health Industry Strategic Social Science Grant Management Treasury 9 sectors Agro-industry Energy Health Environment Social Science IT Services Mineral Geo-Science Manufacturing Construction Science Engineering Grant Management MOSTE 1. EAR - Agriculture Food Security - Natural Resources Environment - Manufacturing Services - Social Transformation - Knowledge Advancement 2. PR - Manufacturing - Plant Production Primary Products - Information Communication - Health - Education Training 3. SR - Design Software Technology - Nanotechnology Precision Engineering - Specialty Fine Chemicals Technology - Optical Technology Grant Management MOSTI 1. ScienceFund a) Biotechnology b) ICT c) Industry d) Sea to Space e) Agriculture 2. TechnoFund a) Agriculture b) Biotechnology c) ICT d) Industry 3. InnoFund a) Biotechnology b) ICT c) Industry Grant Management MOSTI
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GOVERNMENT ALLOCATION FOR RD
9th-MP (2006-2010)
ScienceFund RM1.2 billion
TechnoFund RM1.5 billion
InnoFund RM200 million
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RDC FUND

• ScienceFund
• Technofund
• Innofund

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http//ernd.mosti.gov.my/escience/
Click to access login page
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ScienceFund
MOSTI
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OBJECTIVES

• To generate new knowledge through basic and
  applied sciences
• To develop laboratory proof of concept and
• To enhance research capability and increase
  number of researchers.

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TYPES OF RESEARCH

• Strategic basic research
• experimental or theoretical work undertaken
  primarily to acquire new knowledge that are
  expected to lead to useful discoveries.
• Applied research
• research undertaken to acquire new knowledge for
  a specific application (targeted research).

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RESEARCH FOCUS AREAS
Biotechnology Cluster ICT Cluster Industrial
Cluster Sea to Space Cluster Agriculture
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ELIGIBLE RECIPIENT

• Research Institutions
• Public Institutions of Higher Learning
• Private Institutions of Higher Learning (subject
  to MOSTI approval)
• Government STI Agencies
• GLC research laboratories

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TYPE OF PROPOSAL

• Request For Proposal (RFP)/Competitive Bidding
• Announcement for bidding
• Researchers are invited to bid for research
  funding on specific areas of research.
• ii. Applicant Initiated Project (AIP)
• 2 cycles per year
• Researchers apply for funding under the six
  priority areas.

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SCOPE OF SCIENCE FUND
The funding is for strategic basic and applied
research up to laboratory proof of concept
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ELIGIBLE EXPENSES

• Temporary and contract personnel
• Travel and transportation
• Rentals
• Research materials and supplies
• Minor modifications and repairs
• Special services and
• Special equipment and accessories.

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RESEARCH AGREEMENT

• Signed between MOSTI and the head/CEO of
  institutions within 14 working days upon
  acceptance of the approved projects.
• Terms of agreement
• Scope of work
• Financial management
  
• Ownership of Intellectual Property Rights (IPR)
• Benefits sharing from IP exploitation and
• Exit Clause.

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PROJECT MONITORING
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MONITORING EVALUATION
PROGRESS REPORT (Reported by Project Leader on
financial and milestone progress as well as
overall achievement of project)
PROGRESS ASSESSMENT REPORT (Assessment by
Technical Financial Committee based on reports
and / or site visits)
END OF PROJECT REPORT (Reported by Project Leader
3 months after project completion)
OUTCOME ASSESSMENT REPORT (Assessment by
Technical Financial Committee on output of the
project)
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OBJECTIVES

• Ensuring all approved projects are implemented
  in line
  with the approval of the Coordinating
• Committee

• Ensuring project allocations are utilized in
• accordance with the existing financial
  procedures

• Ensuring a higher level of accountability,
  
• integrity transparency in research
  expenditure
• amongst researchers, coordinators research
• institutions
  
  
  
  

• Submitting recommendations for remedial
• actions on problematic projects
• Assisting the identification of potential
  research
• outputs to be upgraded or commercialized
  

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RESEARCH OUTPUT AND CONTRIBUTION

• Patent
• Publications Reputable journals
  (Conferences/seminars), Citation, Books and
  Others.
• Laboratory proof of concept
• Linkages/collaboration International, regional,
  national research institutions, laboratories,
  incubators, and industries
• Human Capital Development PhD, MSc

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Read
Check archive projects
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TECHNOFUND
PRE-COMMERCIALISATION AND IP ACQUISITION FUND
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What is TechnoFund?

• TechnoFund is a competitive funding to undertake
  innovation to develop and commercialize new,
  cutting edge and breakthrough technologies in
  Agriculture, Biotechnology, ICT, and Industry
  Clusters that create new businesses and economic
  wealth for Malaysia.

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AIMS

• TechnoFund aims to
• Stimulate the growth and successful innovation of
  Malaysian medium and large enterprises by
  increasing the level of RD and its
  commercialisation
• Increase capability and capacity of Malaysian IHL
  and RI to undertake market driven RD and to
  commercialise the RD findings through spin-offs
  / licensing

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AIMS
contd (2)

• Enhance global competitiveness and RD culture
  among Malaysian medium and large enterprises
• Increase contribution to Malaysias GDP through
  economic wealth creation and exports and
• Foster greater collaboration between Malaysian
  enterprises and GRI / IHL.

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TechnoFund Type
Applicants can apply for a combination of the
following TechnoFund Types
Type A Pre-Commercialisation
Type B IP Acquisition
Option Type
1 AB
2 A only
(Note IGS, DAGS, IRPA-EAR, IRPA-PR and IRPA-SR
funded projects are not eligible for Type B. MGS,
CRDF and TAF funded projects are not eligible for
any Type including MSC Status companies.)
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Type A Pre-Commercialisation

• Pre-commercialisation activities comprise
  development of commercial ready prototypes /
  pilot plants / clinical trials / up-scaling for
  demonstration and testing purposes but not
  commercial exploitation

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• Type B IP Acquisition

Type B comprises acquisition of IP (academic /
laboratory scale prototype) from overseas or
local sources for further development up to
pre-commercialisation stage
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TARGET GROUP

• Medium and Large Malaysian Companies (including
  GLCs and PLCs)
• minimum 51 equity held by Malaysians and
• annual sales turnover gt RM10 mil or full time
  employees gt 50
• Malaysian GRI and IHL

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TECHNOLOGY CLUSTERS
Four Technology Clusters

• Agriculture
• Biotechnology

• ICT

• Industry

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Agriculture Cluster

• Animal
• Plant
• Food
• Marine/Aquatic

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Biotechnology Cluster

• Healthcare
• Medical Biotechnology
• Biopharmacy
• Industrial

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ICT Cluster

• Information System
• ICT Infrastructure
• Software
• Emerging Information Technology
• Communication
• Security System
• Artificial Intelligence
• Signal Processing
• Data
• Database Technology
• ICT Application

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Industry Cluster

• Advanced Materials
• Advanced Manufacturing
• Nanotechnology
• Alternative Energy

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COLLABORATION

• Industry applicants are encouraged to collaborate
  with one or more GRI / IHL (public or private).
• GRI/IHL must identify industry partner(s) to
  undertake joint collaboration. Industry
  partner(s) should jointly contribute financial or
  non-financial resources to the project.

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Scope of Funding
Contd (2)
Type Type Scope of Funding
A Pre-Commercialisation Pilot plant set up/ commercial-ready prototype development/ clinical trial IP preparation and registration excluding maintenance of IP Market testing of commercial-ready prototypes (participation in trade fairs and exhibitions) Regulatory and standard compliance Product documentation Equipment and materials for pre-commercialisation Contract expenditure and Expenditure for services (market survey, consultancy and testing).
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Scope of Funding
Type Type Scope of Funding
B IP Acquisition Acquisition of IP Training (Technology transfer)
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Quantum of Funding

• The quantum of funding and percentage of funding
  support under TechnoFund will be determined on
  the merit of each application.

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Application Workflow
Request for Proposal
Brief Proposal
Screening
Full Proposal
Technical Evaluation
Commercial Evaluation
Approval Committee
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INNOVATION FUND (INNOFUND)
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What is INNOFUND?

• INNOFUND provides funding for
• Individual, Micro and Small Enterprises
• Development of new or improvement of existing
  products, process or services with elements of
  innovation
• Community Groups
• Conversion of knowledge/idea into products /
  process / services that improve the quality of
  life of communities

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TYPES OF INNOFUND

• Enterprise Innovation Fund (EIF)
• Community Innovation Fund (CIF)

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• Enterprise Innovation Fund (EIF)

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EIF Eligibility Criteria

• Individual, Micro and Small Enterprises
• Must contain innovative element(s) leading to
  commercialisable products, processes or
  services and
• Can be in any form re-combining, fusing,
  integrating, replicating or refining of existing
  technologies with improved value, enhanced
  efficiency or cost reduction.

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Target Groups
Enterprise Annual Sales Turnover (RM mil.) Full Time Employees (person)
Micro lt 0.25 lt 5
Small 0.25 - 10 lt 50
Individual NA NA
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Technology Clusters
Three Main Clusters

• Biotechnology

• ICT

• Industry

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EIF Scope of Funding

• The eligible expenditure are
• Consumables / materials
• Equipment (not more than 40 of total project
  cost)
• Expenditure for services (consultancy and
  testing)
• Product documentation
• Regulatory and standard compliance and
• Market testing (including samples, fees and
  documentation for participation in trade fairs
  and exhibitions).

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Quantum
Enterprise Grant (RM mil.)
Micro 50,000
Small 250,000
Individual 20,000
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Project Duration
Category Maximum Duration (months)
Individual / Sole Proprietor 12
Micro 12
Small 18
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EIF Workflow
Request for Proposal
Internal Committee Screening
Technical Evaluation
Approval Committee
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• Community Innovation Fund (CIF)

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CIF Eligibility Criteria

• Community Group
• Contributes to societal well-being and
• Can be in any form re-combining, integrating,
  replicating or refining of existing technologies
  with improved value, enhanced efficiency or cost
  reduction.

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Target Groups

• Community Groups
• Non Governmental Organizations
• Community Associations
• Village Development and Security Committees
  (JKKK)

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Technology Clusters
There is no technology clusters for CIF. The
emphasis is innovation that improves social
well-being of communities.
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CIF Scope of Funding

• The eligible expenditure are
• Consumables / materials
• Equipment (not more than 40 of total project
  cost)
• Expenditure for services (consultancy)
• Product documentation and
• Demonstration application (including samples,
  fees and documentation for participation in
  exhibitions).

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Project Duration
Maximum Duration (months)
18
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CIF Application Process
Activity Submission Working days
(i) Application Throughout the year -
(ii) Assessment of Proposal and Notification of Result (ii) Assessment of Proposal and Notification of Result 60
TOTAL TOTAL 60
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CIF Workflow
Request for Proposal
Internal Committee Screening
Technical Evaluation
Approval Committee
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AGREEMENT
An agreement will be signed between the
Government and successful applicants.
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MONITORING MECHANISM

• A. REPORTS
• Periodic Progress Report (every 3 months)
• - milestone
• - financial
• 2. End Of Project Report
• B. ON-SITE VISIT (Selective Basis)
• C. SEMINARS / DIALOGUE

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ISSUES
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Where was UiTM on RD? Involvement?Contributio
n?Achievement?
RD
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No. of IRPA Projects Approved under 7MP
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Amount of IRPA Grant Approved under 7MP
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No. of IRPA Projects Approved under 8MP (As of 31
Dec. 2004)
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Amount of IRPA Grant Approved under 8MP (As of 31
Dec. 2004)
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First Cycle (2006), 9 MP (No. of Project)
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First Cycle (2006), 9 MP (Amount Approved)
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Issues

• Emerging Concern for Commercialisation (GERD/GDP
  0.69 (8 MP), Target to 1.5)
• Patents / License / Royalty /
• No. of spin-off company
• No. of Technopreneurs
• Manpower for RD Management
• RMCs in Univ./ Management in GRIs GLCs

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KEY PERFORMANCE INDICATORS (KPI)

• GERD/GDP
• RSE per 10,000 Labour Force
• Publication
• Intellectual Property
• Commercialisation

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GERD/GDP
Source MOSTE (2000), National Survey of RD,
Putrajaya, p. 20
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RSE PER 10,000 LABOUR FORCE
Source MOSTE (2000), National Survey of RD,
Putrajaya, p. 18
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PUBLICATIONS 1981 - 2002
Source ISIs NSIOD-Deluxe (2002). National
Science Indicators, cited in MOSTE (2003) Science
Technology Knowledge
Productivity in Malaysia Bibliometric Study,
Putrajaya.
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INTELLECTUAL PROPERTY 1993 - 1996
Source OECD, PECC cited in MOSTE (1998)
Malaysian Science and Technology Indicators
Report, p. 213
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COMMERCIALISATION

• Survey of 5,232 projects implemented in 6MP
  7MP
• 14.1 with commercial potential
• 5.1 commercialised
• (Source 8MP Report 2001-2005 p. 351)
• 10 US patented technology commercialised
• (Source US Congressional Paper 91132
  Industrial Competitiveness and technological
  Advancement Debate over Government Policy III.
  Yr 2000)

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MOSTIS SURVEY ON 7 MP
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THANK YOU E-mail zahit_at_mosti.gov.my
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CRITERIA OF SELECTION

• Viability of Research Objectives,
• Output Expected,
• Collaboration and industrial linkages,
• Appropriateness of research methodology,
• Relevancy of key milestone,
• Commercialisation potential,
• Cost effectiveness,
• Project risks (Technical, Financial, Timeline)

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Problems On Application

• Wrong cluster,
• Methodology text (on-line system) overshoot space
  provided, Panel remarks application in-complete
• Duplication of application (one rejected),
• Amount requested too high,
• Grant specifically to be used for research per
  se.

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Other Problems

• Changing of Project Leader,
• Change Vote series,

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Sea-To-Space

• Applied Sciences,
• Physical Sciences,
• Environmental Sciences,
• Material Sciences,
• Etc.