chapter 6 - Malaysia Productivity Corporation ( MPC)

BOX 3.1: CHARACTERISTICS OF INNOVATION-DRIVEN ECONOMIES
In line with the aspiration to be an innovation–driven economy and to become a high income nation,
we need to have a conducive enabling environment where productivity, competitiveness and
innovation will spur the economy to greater heights. In the Global Competitiveness Report 2011-
2012 by the World Economic Forum, Malaysia is one of the most competitive among the 28 countries
in the Efficiency-driven stage of development. With a GDP per capita close to USD9,000, Malaysia is
poised to move into the Transition stage from Efficiency-driven stage of development. Currently, being
in the Efficiency-driven stage of development, Malaysia is characterised as having the ability to produce
products and services efficiently and invested heavily in world class infrastructure. We also have a
business-friendly Government administration, attractive investment initiatives and strong focus towards
skills development and productivity improvement.
To become one of the innovation–driven economies, companies must compete by producing new value
added and unique products using innovative and the most sophisticated production processes. In this
regard, seven characteristics have been identified which are featured below.
Characteristics of Innovation-Driven Economies
Highly Skilled Individuals
Leading to Easier Adoption
to Latest Technology
Strong Collaboration
between Academic and
Business Sectors
Excellent Capacity
for Innovation
SEVEN
CHARACTERISTICS
OF INNOVATION-DRIVEN
ECONOMIES
Strong Focus
on Education
Highly Sophisticated and
Innovative Companies
Business Sophistication
and Innovation
High Levels of Technology
Adoption and Innovation
Productivity Report 2011/2012
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