Chapter 3 Linkages for Fostering Innovation Activities – Case ... - ERIA

development of an industry cluster was in November 1969, with the creation of thePenang Development Corporation (PDC) as the primary state development agency. In1972, the ‘Free Trade Zone’ (FTZ) was created as country’s first export processing zoneto attract foreign electrical and electronics firms (Penang Development Corporationwebsite). The next significant support came in 1989 – with the creation of Penang SkillsDevelopment Corporation (PSDC). PSDC is a joint effort of government, academia andindustry. It was initiated by the State Government through the Penang DevelopmentCorporation (PDC) and is aided by academia, and the management and administration isleft to the industry. PSDC operates as a non-profit society with its mission to poolresources amongst the 4 Free Trade Zones and 4 Industrial Estates in Penang.In the 1990s competition from neighbouring countries led to creation of some hightech institutions to support and stimulate upgrading (at the national level) following theintroduction of the Action Plan for Industrial Technology Development (APITD) in1990 – including those such as the Human Resource Development Fund (HRDF) in1993 Malaysian Technology Development Corporation (MTDC), the NationalElectricity Board, the Telecommunications Corporation and the MalaysianMicroelectronics Systems (MIMOS) and the Private Universities Bill was enacted in1995 so as to enable the development of human resource with greater role for markets.This is in addition to supportive policies from Ministry of International Trade andIndustry (MITI) and also Ministry of Science Technology and Innovation (MOSTI) andpromotional activities undertaken by Malaysian Industrial Development Authority.More recently the 9 thMalaysia Plan 2006-2010, placed high emphasis on theobjective of upgrading manufacturing and related services (9 th MP, MOSTI). Among thekey policies initiated to achieve this objective is:Upscale & value-add manufacturing and related services through knowledge &Innovation based activities in high-end E&E, petrochemicals, biotech and so forth.The following are the major programmes launched to achieve the above objective.98