INCLUSIVE INNOVATION AND ECO-INNOVATION : FOR THE BETTERMENT OF SOCIETY AND THE ENVIRONMENT

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1 INCLUSIVE INNOVATION AND ECO-INNOVATION : FOR THE BETTERMENT OF SOCIETY AND THE ENVIRONMENT DR. MOHD NOR AZMAN HASSAN MINISTRY OF SCIENCE, TECHNOLOGY & INNOVATION (MOSTI) MALAYSIA 1

2 Presentation Outline 1. Overview 2. The National Policy on Science, Technology and Innovation (NPSTI) 3. Inclusive Innovation and Eco Innovation 4. The Next Step 2

3 OVERVIEW Where does Malaysia stand? 12 th position out of 60 nations in the World Competitiveness Yearbook th best economy according to the Global Competitiveness Report rd place out of 144 nations in the Global innovation Index th place in the Global Information Technology Report 2014 Previously 15th position Previously 24th position 3

4 The National Policy on Science, Technology and Innovation (NPSTI) 1. STI for Policy The Five Policy Foundations NATIONAL POLICY ON SCIENCE, TECHNOLOGY & INNOVATION 2. Policy for STI 3. Industry s Commitment to STI 4. STI Governance 5. STI for a stable, peaceful, cohesive and resilient society 4

5 The five policy foundations support the following 6 strategic thrusts ST 1 ST 2 ST 3 ST 4 ST 5 ST 6 Advancing Scientific and Social Research, Development and Commercialisation Developing, Harnessing and Intensifying Talent Energising Industries Transforming STI governance Promoting and sensitising STI Enhancing strategic international alliances 5

6 11 th Malaysia Plan (11MP) 6

7 QUADRUPLE HELIX INNOVATION THEORY TRIPLE HELIX MODEL QUADRUPLE HELIX MODEL 7

8 QUADRUPLE HELIX INNOVATION MODEL It requires more commitment and meaningful participation from all parties - academic and research institutions, the public sector, industry as well as the rakyat (people). This synergy, as illustrated in the Quadruple Helix Model is necessary to ensure Inclusive Innovation becomes a reality. YAB Dato Seri Mohd Najib Tun Abdul Razak Prime Minister of Malaysia June

9 QUADRUPLE HELIX INNOVATION MODEL Government 1 2 Academia Industry 3 4 People 9

10 INCLUSIVE INNOVATION Innovation that causes inclusion and refers to the use of technological or non-technological innovation that leads to affordable access on a sustainable basis to high quality basic goods and services for the excluded population, including the bottom of the pyramid, with a massive outreach. Global Research Alliance 10

11 technology + system of the masses = EBOLA VIRUS DISEASE Inclusive Innovation The involvement of global players in this type of Innovation may speed the discovery of drugs and contaiment of the disease Malaysia To Contribute 20.9 Million Medical Gloves To Five Ebola Affected Countries 11

12 technology + system of the masses = A journey aims at unearthing traditional knowledge and grassroots innovations that have not only simplified the lives of men, women and farm labourers but have also significantly contributed towards the conservation of bio-diversity. It is a journey of mutual exchange and sharing of knowledge. Inclusive Innovation 12

13 ECO INNOVATION 13

14 ENERGISING INDUSTRIES Private sector Public sector 14

15 Green Growth Game Changer 15

16 GREEN TECHNOLOGY MASTER PLAN (GTMP) Role & Main Strategies of GTMP Provide strategic plan for GT (increase in GDP from green industry) Inculcate green culture to improve quality of life (complementing SCP Malaysia project) Facilitate deployment of GT as mitigation initiatives Design Ecosystem in Green Local Companies Framework & instrument (leadership, financial, human capital & technology) to produce green products and services. Identify Growth Areas Potential sectors and sub-sectors for domestic and international GT market Intriduce Enabling Process & Frame work Example Green Procurement, Low Carbon Cities Framework (LCCF) and MyHijau Mark Gree Labelling & Standards. Advocate Life Cycle (LC) Thinking Initiate advocacy programmes and establish LC info-structure (LC database, LC costing, LC assessment Facilite Behaviour Change Improve availability, accessibility, and affordability of green products and services. Establish Clear Direction Specific target for each sector (ETBWW) & Mitigation areas Provide Sustainable Financing Specialised financial vehicle for GT (i.e. Green Investment Corporation) Stregthen Regulatory Framework & Economic Instruments Leveraging existing acts, incentive and tax exemption 16

17 Positioning Malaysia as GREEN TECHNOLOGY HUB INCLUSIVENESS Enables all communities to fully benefit from the wealth of the country HIGH INCOME Target US$15,000 20,000 by 2020 Rakyat Quality of Life SUSTAINABLILITY Meets present needs without compromising future generations.malaysia should embrace a leadership role in green technology and become a strategic niche player in high value green industries and services that play to our competitive advantage. (Malaysia s New Economic Model) 17

18 GTMP FOR GREEN GROWTH ECOMONY (enable players) Contribution to National GDP FDI & DDI Certified Green Industries & revenue Increase number of jobs Spin-off & supporting industries SOCIAL (experience immediate impact) Green cities & township Green lifestyle & culture Improved quality of life ENVIRONMENT (experience medium-long term impact) Reduction in GHG emission Ranking of Environmental performance by 2030 Improvement in Air Quality Improvement in Water Quality By 2020: GDP : RM22.4bil 1.2% of national GDP Investments: RM28.0 bil (cum.) Green jobs: 144,590 (cum.) or 0.7% of workforce Source: GreenTech Malaysia 18

19 % of GDP : 0.8% GT Investment : RM935 mil Revenue : RM33.3 bil Number of jobs : 62,525 Recycling rate : 10.5% Material Recovery Facility : 1 RE Generation : 502,201 MWh Solar PV : 52,363 MWh Biogas : 26,081 MWh Biomass : 325,096 MWh Small Hydro : 98,662 MWh Carbon emission reduction: 40.2 MtCO 2 eq % Carbon Intensity Reduction : 25% GTMP Current scenario Hybrid Cars : 27,118 Electric Cars : 46 EV Charging Station : 31 Public Transportation KL Monorail Line : 11 stations Express rail Link lines : 6 stations KTM Commuter lines : 50 stations Light Rail Transit lines : 49 stations Sanitary Landfill : 8 Green Building : 191 Green Cities/Towns : 6 pilots Rain Water Harvesting : 23 projects Water Efficient Appliances : 116 products Source: GreenTech Malaysia 19

20 Evolutionary Process Ignore Dilute Control Prevent via Sustainable Development Environmental via Management recycling; treatment cleaner production; sustainable consumption The Goal vs. 20

21 SCP Blueprint Pathways to Green Growth in Malaysia 21

22 Strengthened policy framework Effective Coordination National SCP Focal Point (EPU) Mapping the State of Play SCP Indicators and Monitoring Networking and Synergies SCP CEPA SCP Policy Framework SCP Blueprint / SCP Input to 11th Malaysia Plan Addressing the Change of Patterns and Behaviour Industry Greening the Supply Chains Industry Energy Efficiency Management and Reporting Sustainable Products and Services Sustainable Waste Management Consumers Government Green Procurement (GGP) Sustainable Buying, Use, Disposal Sustainable Lifestyles Key Sectors Sustainable Building Sustainable Transport Sustainable Food Sustainable Tourism UPSCALING SCP-Sustainable Practices in the large! 22

23 THE NEXT STEP 11 th Malaysia Plan Implementation A green policy for eco-innovation Best practices by industry Collaboration with international bodies especially UNEP Blue Ocean Strategies (BOS) between agencies and ministries. STI in Malaysia People Economy via SOCIAL INNOVATION + Capital Economy via ECO- INOVATION 23

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25 Game Changer : Embarking on green growth Why is green growth important for Malaysia? What will success look like? How will this be achieved? Malaysia is grappling with the challenge of balancing a growing population and demand, with a natural environment that is increasingly under stress. In aglobal context of increasing intensity and frequency of extreme weather events, adopting green growth has now become an imperative for Malaysia. represents Malaysia s commitment to renew andincrease its commitment to the environment and longterm sustainability. Detrimental impact of socioeconomic activity on environmental systems is reduced; Natural capital, including forested areas, biodiversity, and water resources as well as its ecosystems, is valued and sustainably managed; Development gains are protected, thus ensuring wellbeing of people across generations; and Energy use is efficient and renewable energy is widely used. requires a fundamental shift away from a grow first, clean up later development model towards one that views resilient, low-carbon, resource-efficient, and socially inclusive development as an upfront investment that will yield future gains over multiple generations to come. requires fundamental changes across every major dimension including how policy is determined, how institutions are regulated, how responsibilities are shared, and how people value their environment. 25

26 Game Changer : Embarking on green growth 26

27 Strategy Canvas : Pursuing green growth 27

28 Sustainable consumption and production (SCP) 28

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32 Strategy Canvas - Productivity 32

33 Organizational structure of ASEAN COST AMST COST ASEAN Secretatriat ABSF ABAPASTI SCFST SCMG SCOSA SCICT SCAMN SCBHLS SCSER SCMSNT SCIRD 33