Science parks and university–industry collaboration in Malaysia

Abstract

Studies have shown that companies with university links usually have higher productivity rates than comparable companies that do not have such links. They are also better off in terms of market share, quality of products and services and cost competitiveness. Thus the link between firms and universities is considered fundamental to the concept of science parks. Science park firms are generally known to conduct more R&D than off-park firms apparently because of the close interaction with local universities. This gives firms the leverage to exploit the knowledge spill-over generated by universities. This paper is an attempt to examine the effectiveness of science parks as a strategy to promote university–industry collaboration in Malaysia. Its findings show a reasonably high level of interactions between the science park (on-park) and off-park firms, and local universities. Overall, science park firms have more links with universities than off-park firms, although the difference is not shown to be statistically significant.

Keywords:

• science park/on-park and off-park firms
• innovation
• competitiveness
• R&D
• SMEs
• Malaysia

Notes

A national innovation system is defined as ‘a set of distinct institutions which jointly and individually contribute to the development and diffusion of new technologies and which provide the framework within which governments form and implement policies to influence the innovation process. As such it is a system of interconnected institutions to create, store and transfer the knowledge, skills and artefacts, which define new technologies’ (Metcalfe 1995, 462–463). See also Nelson (1993).

See Etzkowitz et al. (2000) for an account of the expanding role of universities from teaching and research to economic and social development.

See definition of a science park provided by the International Associations of Science Parks (IASP) at URL: http://www.iasp.ws/ (accessed 15 November 2004).

While many have acknowledged the role played by the park in the early growth of Silicon Valley, there are some who argue that proximity to university is not a sufficient condition for a successful cluster. See Dosi et al. (2005) for elaboration.

The largest science park in the USA is the Research Triangle Park covering more than 7000 acres. The Aberdeen Science and Technology Park in Scotland is less than 60 acres.

Such maturity would entail possessing manufacturing capabilities, existence of large clusters of high-tech activities with well-developed local supplier and subcontracting system, technically trained workforce and high level of industrial R&D (UNCTAD 2003, 52). See also Narayanan and Wah (2000) for an account of Malaysia's technological maturity without a strong research base.

The biggest project ever undertaken is the Multimedia Super Corridor (MSC) launched in 1996 to promote and develop ICTs and multimedia activities. The MSC is based on the Silicon Valley model to propel the country into a knowledge-based economy through technological leapfrogging.

The Ministry is now known as the Ministry of Science, Technology and Innovation (MOSTI).

One of the criteria for MGS grants includes linkages to local research institutes and leading companies.

Mohnen and Hoareau (2002) conducted the study of firms in France, Germany, Ireland and Spain using the information contained in the second Community Innovation Survey (CIS). Large firms and those with patents are the ones that mainly forge such links.

The TPM Academy was established in 1998 as a subsidiary of TPM and became fully operational in February 2000. As a government company it is owned by the Ministry of Finance Incorporated. It operates under the Ministry of Science, Technology and Innovation (MOSTI).