Introduction To Innovation
Innovation and technology often falls to the wayside as SMEs are very pre-occupied in sustaining the day-to-day running of their business operations. However, it is found that new technology, technical improvements as well as innovation are crucial in helping a business grow and differentiate their product/services from the rest of their competitors.
But what is the current level of innovation among SMEs in Malaysia, and what can be done to help them improve?
Comparative studies showed that the level of innovation of Malaysian firms was at par or higher than that of middle-income countries, but far below the levels of high-income countries. Thus, acknowledging the fact that innovation and technology adoption was the most important performance lever, having the highest impact on total factor productivity and employment growth, the focus of SME Masterplan (2012-2020) was premised at promoting productivity-driven, innovation-led to drive SMEs forward.
Hence, the Malaysian Government has been working tirelessly to encourage SMEs to be part of the national innovation system via various programmes and platforms.
Please click the following links for further readings:
- Increase Productivity and Technology Management Capability for SMEs with the SIRIM-Fraunhofer Programme (https://www.sirim.my/innovation-by-programme/sirim-fraunhofer-programme)