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

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Figure 6 Diagram of Creative Bliss’ Linkages3.4.4. Issues in Policies related to InnovationThough the government policies, both at the national and state level, are consideredto be supportive for Innovation – be it in terms of grants, infrastructure provision,policies like tax rebated etc, the firm is not aware of many options available and hencehas not sought help from any of these incentives/policy passed benefits. Hence, for mostof the innovations at Creative Bliss are self financed/funded3.4.5. ConclusionsFrom the Creative Bliss perspective the key issues in Penang cluster that are helpfulfor going up the value chain from manufacturing to design and innovation activities are– availability of highly skilled human capital, presence of large base of local suppliers,presence of its major customer and cluster institutions. At the national level, provisionsmade by the MITI ministry and in general the stable political environment are deemedas useful. Reducing procedural delays to utilize existing grants and more incentives to115
further develop the cluster are considered as critical for the further development of E&Esector in Penang.3.5. Case #5 - Kontran (Kontron Manufacturing Services (Malaysia) Sdn Bhd)Kontran Malaysia has its manufacturing and R&D centres in Penang. KontronMalaysia, while being a part of the Kontran – a German company listed in theLuxemburg stock exchange, is a private limited company. Kontron ranks as one of theworld's largest manufacturers of embedded computer technology (ECT) and suppliesleading OEMs, system integrators and application providers. Some of the products thatKontron offer include Boards & Mezzanines, Computer on Modules (COM), HMIs andDisplays. In 2008, Kontron sales were recorded at 497 million Euros (about US$ 697million). Kontron in Penang currently has a staff strength of about 500 with principaloperations in the facility are manufacturing of integrated circuits boards (ICB) fortechnology applications in the areas of energy, medial, aerospace, transportation,telecom, gaming, automation and military and research and development activities.3.5.1. Factors Attractive in Penang for ManufacturingKontron Malaysia started in as UNICO, a Malaysian firm setup operating in Penangfrom 1996, used to be the largest supplier of ICBs to Intel. Later it was successful inbuilding a strong supplier system in the cluster through Rozatanet. UNICO wasacquired by an American firm first and later on acquired by Kontron, a German MNC(which spun out of BMW). Availability of highly skilled engineers is the critical factoralong with a local CEO supportive of R&D activities for Kontron to move up frommanufacturing to design and development activities. In addition generally low cost ofdoing business, availability of cheap labour (for manufacturing), the presence of its keycustomers and strong supplier network in the cluster have made Kontron to continue itsmanufacturing operations in Penang. Supportive policies of the federal government and116
Page 8 and 9: export-oriented strategy to promote
Page 10 and 11: Table 5 PENANG: APPROVED MANUFACTUR
Page 12 and 13: participating in the survey, improv
Page 14 and 15: 1. Customized incentives to attract
Page 16 and 17: • Investment tax allowance on the
Page 18 and 19: developing certain factors conduciv
Page 20 and 21: Linkage with Other Cluster Actors T
Page 22 and 23: facility. Among the more recent inn
Page 25 and 26: precision engineering and manufactu
Page 27 and 28: Figure 5 Diagram of Firms Linkages
Page 29: 3.4.2. Key Drivers and Support For
Page 33 and 34: Kontron has healthy inter firm link
Page 35 and 36: which houses manufacturing cells an
Page 37 and 38: this requires the application for t
Page 39 and 40: with a university (Multimedia Unive
Page 41 and 42: the federal government and good inf
Page 43 and 44: 3.9. Case #9 - Motorola MalaysiaFou
Page 45 and 46: Figure 11 Diagram of Motorola Linka
Page 47 and 48: co-develops products and also uses
Page 49 and 50: customers, as developers of supplie
Page 51 and 52: author is trying to make contact) b
Page 53 and 54: 5.4. Entrepreneurial Culture for In
Page 55 and 56: Appendix AScience and Technology In
Page 57 and 58: undertaking reinvestments D (by way
Page 59: Enrolment and Graduation in Doctora

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