Implementation of technology driven policy initiatives in emerging economies: the case of Malaysia's Commercialisation of Research and Development Fund

The purpose of this study is to investigate the impact of a policy initiative to uplift innovation capabilities among indigenous high-technology small and medium enterprises (SMEs) in Malaysia. As an emerging economy, Malaysia has actively introduced policies to propel economic development. These policies are acknowledged as powerful tools to promote industrialisation and economic diversification. As the country moves towards a knowledge-based economy, this study provides insight into how a policy comprising a financial initiative introduced by Malaysian Government has been used to enhance capabilities of indigenous small and medium enterprises particularly for innovation. This study is exploratory since it seeks to find out how firms developed and enhanced their innovation capabilities in the presence of government policy. The goal is to learn 'what is going on here' and the phenomenon in light of the innovation process and Dynamic Capabilities (DC) concepts. This study adopts an interpretative approach and uses multiple case studies with semi-structured interviews as the main data collection technique. This study relies on this technique to explore the views and experience of the selected Commercialisation of Research and Development Fund (CRDF) recipient about the impact and application of that policy initiative (i.e. the CRDF). Overall, the researcher conducted 13 one-to-one and three group interviews. The interviewees consist of key informants from firms and MTDC personnel. Two additional data collection methods: documentary analysis and observations were utilised; thus, improving the triangulation of the findings. The findings show that the implementation of the CRDF in particular is in line with the specific objectives of the policy which is intended to support commercialisation of research outputs among indigenous small firms. This study also found that this policy initiative tends to affect the latter end of the innovation process (i.e. in particular in the exploitation phase) rather to the innovation process in general. These findings demonstrate how firms have been using funds from the CRDF to support the innovation process, especially for upgrading their capability regarding the new product development process for high technology products. The important dimension that emerged is that the CRDF is enhancing firms innovation and dynamic capabilities, especially those capabilities relating to their ability to carry out innovation. These capabilities are centred on firms’ ability to respond to a changing environment by producing high technology products that meet regulatory requirements as well as customer demand.

Name dc:type.qualificationname

phd

Level dc:type.qualificationlevel

doctoral

Grantor dc:publisher.institution

Nottingham Trent University

Year dc:date.issued

2016

Author dc:creator

• Mukhtar, D

Language dc:language

en