Research talk on Innovation Policy in Malaysia

The Centre for Economic Studies (CES) parked under the Faculty of Business and Finance (FBF) of UTAR has successfully organised a research talk on 28 August 2017 at Kampar Campus.

The speaker, Prof Dr Lai Yew Wah from the Universiti Sains Malaysia (USM) was invited to share his research project titled “Innovation Policy in Malaysia”. The talk was attended mostly by academics from FBF.

In his two-hour talk, Prof Lai explained that innovation is recognised universally as being critical in initiating and sustaining progress. He explained, “Innovation has traditionally been viewed as signalling something ‘new’ that requires much substantial investment in talent and funds, putting the endeavour beyond the scope of resource-scarce developing nations. Besides that, the changing understanding that innovation can also embrace incremental initiatives to improve productivity, and generate products, processes or ideas that are not necessarily  new to the world but bring new solutions to existing problems in the developing countries.”

Prof Lai ascertained that there is micro-level evidence of growing innovation at the firm-level in Malaysia, however, macro indicators such as R&D expenditure, number of R&D personnel, patents granted and global innovation ranking are often used to evaluate the key inputs and outputs of innovation and allow comparisons with other countries.

Moreover, Professor Lai also emphasised that the commitment of Malaysia in harnessing, utilising and advancing Science and Technology is reflected in the formulation and implementation of the various Science, Technology and Innovation (STI) policies. He said, “These policies are believed to shape the structure of the Malaysian National Innovation System (NIS). Government initiatives in support of R&D and innovation seek to address the public-good nature of innovation.”

According to Professor Lai, the public sector also initiated several schemes such as science and technology parks, university-industry collaboration in R&D, industrial clusters and biotechnology projects to encourage the innovation in Malaysia.

Last but not least, Professor Lai also suggested that future innovation policy initiatives should address the weaknesses in existing structures and policies rather than introduce new ones. He said that some key areas need attention include consolidation of agencies and institutions in the NIS, strengthening linkages, building the talent pool, patents and intellectual property, establishing a competitive business environment and making R&D incentives work.

The talk was ensued with a Q&A session and ended with the presentation of souvenir by FBF Deputy Dean for R&D and Postgraduate Programmes Dr Lau Lin Sea to Prof Lai as a token of appreciation.

Professor Lai is currently a Project Researcher at the Centre of Policy Research and International Studies at USM. He holds a PhD in Economics from the University of Hawaii. He has served at USM and Wawasan Open University in various capacities. He has also been appointed to research fellowships and visiting positions at several universities including Nihon University, Stanford University, El Colegio De Mexico and Kyoto University.  His research interests include issues relating to technology transfer, foreign direct investments, foreign labour and crime. His publications include the employment impact of tariff protection, FDI, productivity, technological progress and factor substitution in Malaysian manufacturing industries, the impact of foreign labour, technology transfer to the EE sector and the supporting industries in Penang, consumer and merchant payment preferences and usage in the Klang Valley and Penang and public perception on crime and safety in Malaysia.

 Prof Lai explaining the statistics on R&D personnel per million population

Dr Lau presenting a souvenir to Prof Lai

A group photograph of participants with Prof Lai