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International Network for SMEs (INSME)“International Cooperation to Seize Innovation Opportunities for SMEs” : 

1/21 Presented By: Dr. Mohd. Ariffin Aton President and Chief Executive SIRIM Berhad, Malaysia 13 – 15 April, 2005 Barcelona, Spain TECHNOLOGY BUSINESS INCUBATORS AS A CATALYST TO PROMOTE GROWTH FOR SMEs IN MALAYSIA International Network for SMEs (INSME)“International Cooperation to Seize Innovation Opportunities for SMEs”

Content : 

2/21 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

Slide 3: 

3/21 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” 1. WAITRO AND ITS ACTIVITIES SIRIM Berhad hosts WAITRO Secretariat since 2002

WAITRO Activities : 

4/21 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 R&D, 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.

Slide 5: 

5/21 1, Persiaran Dato’ Menteri Section 2, 40911 Shah Alam Selangor, MALAYSIA HQ area: >50 acres Offices: 8 Branch Offices Subsidiary: 2 wholly-owned subsidiaries 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. 1st September 1996: SIRIM Berhad was fully operationalised. 2. SIRIM Berhad

Slide 6: 

6/21 CORE ACTIVITIES SIRIM Berhad Core Activities

SIRIM Off-Site Facilities and Branch Offices : 

7/21 IPOH KUANTAN KUALA TERENGGANU KUCHING KOTA KINABALU SHAH ALAM MELAKA JOHOR BAHRU BRANCH OFFICES BUTTERWORTH SIRIM Off-Site Facilities and Branch Offices Kulim AMREC LIAISON OFFICE-KOTA BARU Rasa RAMET Sepang Incubator & SMI National Metrology Laboratory LABORATORY / CENTRE

Slide 8: 

8/21 Economic Drivers Increased Growth competitiveness Key Productivity Drivers World-leading MNCs (FDI) New High-Tech Ventures Competitive National Industries R&D Support System SMEs As Support Industries 3. Economic and Productivity Drivers for Growth Competitiveness

Slide 9: 

9/21

Slide 10: 

10/21 Integration of Science, Society and Economy for Sustainable Development

Slide 11: 

11/21 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 4. Malaysian Economy

5. Definition of SMEs : 

12/21 5. Definition of SMEs Exchange : 1 USD=RM3.80

TBI as catalyst for SME growth in Malaysia : 

13/21 TBI as catalyst for SME growth in Malaysia Year 1986 - 1st Generation Technology Incubator Scheme Year 2000 – 2nd Generation Technology Incubator Scheme Year 2001 - Satellite Incubators Year 2002 - Incubator Hub ( Techno-Business Incubator Centre) 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 2005 8th Malaysia Plan (2001-2005) 2010 Vision 2020 Meeting the National Vision Smart Partnership National Incubation Network Association (NINA) Research Institutions Universities/Institutions of Higher Learning Donor/Funding Agencies Implementing Agencies Centres of Excellence Spin-Off Global Players Knowledge-based technopreneurs Competency-based technopreneurs Spin-Off

National Incubation Network Association (NINA) : 

14/21 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)

6. Technology Business Incubator as Catalyst of Growth : 

15/21 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;

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

16/21 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

SIRIM Incubator Model : 

17/21 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 Technology Transfer & Consultancy Services Advisory Services After-Care Service

7. SIRIM Intervention in SMEs Development : 

18/21 7. SIRIM Intervention in SMEs Development ITAF, IGS, MGS, CRDF, TAF Technology Centres Incubator & SMI Dev Dept Productivity & Quality Improvement Graduate Attachment Scheme CEFE Programs/ Modules Technical/Technology Competency Product/Process Development/ Improvement Incubator (On-Campus) Incubator (Off- campus) Quality Improvement Practice (QIP) Quality Management Services (QMS) National Quality Scheme Product Certification ISO 9001,EMS ISO 14001 TS 16949, OHSAS 18001 HACCP, GMP, etc International TBT WTO Standards Info IP Enterprises/ Entrepreneurs Courses/Training/ Workshop/Seminar Technology Quality Management Evaluation Information Manufacturing Extension Seminar/ Workshop Product/ Process Development Product/ Process Improvement Marketing Other Services Technology Transfer Courses/Trainings Led Consultancy ICC/SPC QMS Documentation IQA Technology Assessment Counselling ITAF Potential/Would Be Entrepreneurs Lack Technical/Technological Knowledge/Know-How Not Enough Basic Facilities, Technical & Technological Capabilities, Capital (operate in SIRIM Campus) Manufacturing Extension & Advisory Services (operate outside SIRIM Campus) Insufficient in Quality System SMEs Development Input 0 1 2 3 4 5 6 7 r & D Prototyping Testing Trial production Small Scale Production IP Technical Information Services IP Other Enterprise Development Programs Collaboration with Local/International Agencies

8. SIRIM Incubator Setup : 

19/21 8. SIRIM Incubator Setup Incubator Hub (Techno Business Incubator Centre, Sepang) Incubator Satellite (SIRIM Branch Offices) Satellite Incubator (Jalan Beremban) Off-Campus Incubator (Virtual) Satellite Incubator (HQ in Shah Alam) Entrepreneurs Premises University Premises Factory Space owned by Financial Institutions Factory Space owned by Gov’t Ministries/Agencies On-Campus Incubator (Satellite & Hub) Off-Campus Incubator (Virtual)

9. Key Success Factors : 

20/21 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

Slide 21: 

21/21 THANK YOU FOR YOUR ATTENTION

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