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

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3.7.1. Motivation and Drivers for InnovationMost of the innovation is in products – 80% of innovation is in existing productsfor product differentiation. Being a new firm in the sector they seek this. About 20% ofthe innovations are for moving into new markets. Drivers for innovation are keycustomers (TNCs in Penang and in other clusters) and from information searches doneby R&D personnel. The key sources of information for innovation include participatingin technology conferences - organised by technology driving associations (like IEEEetc), research articles from academics (searched via internet).3.7.2. Support For InnovationThe main support for Innovation (in this case being a relatively new firm) comesfrom (1) at the national level supportive policies from MITI and MOSTE – MITI forsupportive policies in general and for the issue related to imports of equipments etc andcertain grants made available. MOSTI for the supporting with incentives and grants forspecifically R&D activities. In addition the availability of highly skilled manpower(from the TNCs) in Penang and a good supplier base are important.3.7.3. CollaborationsOverall the linkages developed by ViTrox are of a short/medium term nature. Thereis not much firm to firm - within Penang cluster – with the exception of collaborationwith Agilent Technologies. The firm started by taking over ownership of some of theproducts that Agilent in Penang wanted to spin out / sell out. And ViTrox maintainsstrong links with Agilent – formally and informally. The linkages are strong withsuppliers within and outside Penang.There is both direct through the PSDC linkage – for training facilities and indirectsupport also as PSDC provides training and skill development support for the localsupplier base. There is some linkage with the cluster university. There is strong linkage123
with a university (Multimedia University) located in the ICT cluster of Cyberjaya –joint projects with the faculty there and also student internships are the innovationsupporting activities. This linkage has important implications for other such firms forsupporting R&D in the E&E sector. There is also a link with a university in the USA fortechnology development (through the US office).Figure 9 Diagram of ViTrox Linkages3.7.4. Issues in Collaboration and ConclusionsOverall ViTrox sees collaborations – particularly with universities within the clusterand in other cluster as a critical aspect for supporting innovation activities. The strongindustrial base in Penang and supportive policies - from the national stage governmentshas been instrumental for being located in Penang. ViTrox sees the need forcollaboration in the ICT sector as software development is an integral part of the R&Din its area of operations (testing equipment) and has actively sought out links indifferent clusters – with a university and also with software developers – seekinginformation from the internet.124
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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 and 30: 3.4.2. Key Drivers and Support For
Page 31 and 32: further develop the cluster are con
Page 33 and 34: Kontron has healthy inter firm link
Page 35 and 36: which houses manufacturing cells an
Page 37: this requires the application for t
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
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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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