Global Tech Hub Blueprint

Transcription

CYBERJAYA
Global Technology Hub
Blueprint
INTRODUCTION
The Global Technology Hub Blueprint study was commissioned to carve out the technology strength in Malaysia,
to be strategically developed and to strengthen its core competency for innovative technology development
within Cyberjaya. The development of specific technology focus is to consolidate key resources and distinctive
capabilities of Cyberjaya, for developing new opportunities to invoke and foster innovative values in technology as
a driver for the country. The study undertook benchmarking of the best technology parks and start-up ecosystems
across the globe that played a pivotal role in the success of their own technology driven economies. This strategic
approach brings to light a broader perspective in using global practices to work with various agencies across the
ecosystem. This includes collaborative industry partnership and commercialisation in the technology value chain
of Malaysia. The blueprint provides a conceptual framework to evaluate the impact of innovation and technology
at a global level; to benchmark local technology integration competency and a yardstick for resources efficiency to
develop a competitive edge for achieving the digital aspirations of Malaysia
No part of this document may be reproduced in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written
permission of Cyberview Sdn Bhd (CSB). This document has been compiled for the exclusive use of the Global Technology Hub committee and stakeholders and is
not complete without the underlying detail analyses and the oral presentation. CSB does not assume any responsibility for the completeness and accuracy of the
statements made in this document.
© 2014 by Cyberview Sdn Bhd. All rights reserved.
CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT
FOREWORD
Yang Berbahagia Tan Sri Dr. Mohd Irwan Serigar Abdullah
Treasury Secretary General
Malaysia Ministry of Finance
Technology, beyond the spectrum ofeconomic development. It is an area
Information Communication Technology iswhere innovation and creativity that can
rapidly becoming a key resource to fosterconsolidate
growth,
generate
new
innovation and boost economic and socialemployment
and
create
business
prosperity for Malaysia. The contribution toopportunities. The role of technology has
the national GDP from the digital economyglobally made a paradigm shift to become
is expected to reach 17% as we movea critical enabler, a demand driver and
towards year 2020. Technology is a majortaking the centre stage in some of the
contributor and key driver to the nationalleading economies and enterprises today.
In the economic sense, technology have become a new form of asset class,
equivalent to data or oil. The competitive advantage for many countries has shifted
towards process technology which are man-made and in replacement of natural
comparative advantage. That is the power and opportunities driven in this era of
technology and internet
As the government puts in place many digital measures under the New Economic
Model, Economic Transformation Plan, Government Transformation Plan and Digital
Malaysia to place Malaysia firmly on the global digital map, we must ensure that we
have a complete ecosystem that continues to progress in tandem with our national
digital agenda. With this strategic injection of push to our national initiatives, it
realigns our national initiatives to a leaner and stronger approach to work inclusively
across all agencies. By doing so, our country will keep in pace with the much
competitive global economy.
FOREWORD
Economic growth will be more targeted with efficient use of
resources by converting to technology-led industries in
sectors that Malaysia has the competitive advantage.
Development of a Global Technology Hub into a vibrant,
productive and liveable city comparable to major cities in the
world is critical in our mission to attract talent, businesses and
investments to Malaysia. This investment in technology
advancement will set an example for Malaysia’s very own
Global Technology Hub to be replicated for sharing of
economic benefits in other urban cities to create a robust and
vibrant community in line with the current global environment
and national priorities.
initiated for pushing technology and the idea of a Global
Technology Hub in Cyberjaya is timely and brings new focus
to technology for Malaysia.
To develop Malaysia with a mission towards a progressive
and high-income nation, we must consistently keep our sights
set on making sure we deliver and occasionally adjusting as
needed to achieve it. Our past strategies of driving economic
development needs to be consistently injected with strategic
approaches to keep the economic development resilient and
the determination drive forging. This collaborative study
I have full confidence that the Global Technology Hub
blueprint will bring about positive changes which will benefit
all Malaysians. The Government and Ministry of Finance is
committed to ensure delivery of goals underpinned by the
blueprint and I am personally committed. Let’s take this
journey with a mighty stride as a nation – together for
Malaysia.
I would like to take this opportunity to express my
appreciation to all Regulators, Agencies and Ministry
departments who contributed towards the development of this
Global Technology Hub blueprint. The successful completion
of the study has only earmarked the beginning of our
transformation journey for fast-tracking our technology
innovation. It will not be easy and we must work inclusively to
brace the challenges.
EXECUTIVE SUMMARY
In 2013, Cyberview Sdn Bhd received a new mandate from
the Malaysian government to transform Cyberjaya into a
Global Technology Hub. This new hub shall not be limited to
ICT and at the same time accelerate Cyberjaya’s global
leadership in Information Communications Technology.
This initiative aims to create high technology jobs for
Malaysians and to make Cyberjaya a preferred investment
hub for technology companies while reaffirming Cyberjaya's
existing position as a premier ICT location.
Committed to the new duties given, Cyberview’s team set
out on a study to formulate a strategic blueprint. This
blueprint will identify common key success factors of global
technology cities to develop focus areas that will expedite
achievement of the aspirations from the new mandate.
The Strategic Blueprint also developed the various
positioning strategies for Cyberjaya as well as potential
target companies to attract in each technology focus areas.
Cyberjaya will seek to secure, in close collaboration with all
other relevant agencies, a set of key enablers to nurture an
attractive ecosystem for targeted investments, for instance,
talent, infrastructure, R&D institutions and platforms,
incentives and funding, networks, broadband access and
liveability.
The Strategic Blueprint is expected to have a significant
impact in terms of GNI creation, job creation, development
of new industries and industry specific ecosystems as well as
technology transfer.
As part of the Strategic Blueprint, Cyberjaya will focus on
drawing investments to and developing the ecosystem for 5
technology focus areas, in close collaboration with all
relevant agencies :
ICT
NON-ICT
(consists of 5 selected sub-areas)
Information Security
Green Technology
Creative Content Technologies
Biotechnology
Mobile Internet
Wearable Technologies
Cloud Computing
Smart Grid Technology
Big Data Analytics
Contents
Page
A
Context
A1. Technology in the national agenda
A2. Cyberjaya's current situation
A3. Technology trends that are shaping Asia Pacific
A4. Benchmarking of other technology hubs
5
6
11
20
25
B
Key technology areas
B1. Overview of selected technologies
B2. Technology and competition overview: ICT-related technologies
B3. Technology and competition overview: Other technologies
38
39
42
53
C
Positioning strategy & action plan
62
D
Impact
81
E
Appendix
E1. Benchmarking: Technology parks
E2. Benchmarking: Start-up hubs
84
85
98
A. CONTEXT
A1.
Technology in the national agenda
As a first step, we analyzed relevant policy documents to gain
deeper insights into technological priorities at the national level
• Malaysia's national development plans
New Economic
Model (NEM)
(2009)
Vision
documents
Economic
Transformation
Program (ETP)
(2010)
Conceptual
blueprints
Operational
roadmaps
Sector-specific
action plans
9th Malaysia
Plan 2006-2010
(2006)
Strategic
ICT Roadmap
(2013)
Government
Transformation
Program (GTP)
(2013)
10th Malaysia
Plan 2011-2015
(2010)
SME Master
Plan 2012-2020
(2012)
Digital Malaysia
354 Roadmap
(2014)
S&T Master
Plan
(2003)
3rd Industrial
Master Plan
2006-2020
(2006)
By doing this, we had to reconcile the different priority areas
defined in each national policy document
• Development plans focus areas
New Economic
Model (NEM)
(2009)
8 Strategic
Reform
Initiatives
(SRIs)
> Re-energising the private sector
> Developing a quality workforce and
reducing dependency on foreign
labour
> Creating a competitive domestic
economy
> Strengthening the public sector
Economic
Transformation
Program (ETP)
(2010)
12 National
Key Economic Areas
(NKEAs)
> Greater Kuala Lumpur/Klang
Valley
> Oil, Gas & Energy
> Palm oil & Rubber
> Wholesale & Retail
> Financial Services
> Tourism
Operational
roadmaps
Digital Malaysia
354 Roadmap
(2014)
3 ICT FAs 1)
5 Sub-sectors > ICT services, eCommerce, ICT manufacturing, ICT trade, content &
media
4 Digital
communities > Digital entrepreneur, B40, Youth, SME
Sectorspecific
action plans
Strategic
ICT Roadmap
(2013)
Vision
documents
Conceptual
blueprints
> Transparent and marketfriendly affirmative action
> Building the knowledge base
and infrastructure
> Enhancing the sources of
growth
> Ensuring sustainability of
growth
> Electronics & Electrical
> Business Services
> Communication content &
Infrastructure
> Education
> Agriculture
> Healthcare
> Access, Adoption, Use
6 ICT
FAs1)
> Cloud Computing
> Wireless Intelligence
> Big Data & Analytics
> Security
> E-services
> Ubiquitous connectivity
1) Focus Areas
The national reports emphasize the need to identify specific niches
where Malaysia can leverage its strengths to develop an edge
• Key findings: Vision documents & conceptual blueprints
General perspectives on
technology
New Economic
Model
> Shift focus from importing foreign
technology to encouraging homegrown
innovation
> Need for niche-focused development
> Need for a closer collaboration between
private sector, academia and R&D centers
> Lack of support for innovative SMEs
ETP
> Shift from a low-cost to a knowledge-based
economy to avoid 'the middle-income trap'
> Need for a cluster development approach
GTP
Perspectives on ICT and
ICT-related sectors
> Need for more incentives towards ICT
companies to relocate into clusters
> Need for broadband expansion to leverage
advanced infrastructure by :
– Attracting data and processing centers
– Focusing on content development
(mainly eGovernment, eLearning and
eHealth)
New technology niches
identified
> High-value green industries and services
> Renewable energies (photovoltaic, biomassusing technologies), biodegradable products
> Oils, cosmetics, nutraceuticals
> High-value added products for palm oil
(e.g: Mechanization, biotech seed research)
> Need for latest infrastructure rollout (e.g: 4G) > Sub-segments within education and
healthcare sectors where modern
> Shift from providing infrastructure and
telecommunications can be applied
access to applications and content
> Need for private sector-led growth and
more private-public partnerships
> Need for strengthened advanced services
(e.g: Creative content, payments, ecommerce)
> N/A
> Need for increased availability and usage of
Mobile Computerized Access Devices
(MCADs)
> N/A
Key implications for Cyberjaya
> Need to shift from previous focus on infrastructure to value-added activities such as the development of content and
applications
> Need for a nimble, targeted approach to identify niches where Cyberjaya has a competitive edge
They also spelt out the need for technology clusters in Malaysia to
serve as local catalysts for commercially-oriented technologies
• Key findings: Operational roadmaps
General perspectives on
technology
9th Malaysian
Plan
> Need for 'technology-oriented incubators'
Perspectives on ICT and ICTrelated sectors
> Need to enhance ICT-related skills
> Agriculture: Biotech, ICT applications
> Need for incentives for market-oriented
> Lack of linkages between local and world
R&D to increase the commercialization rate
class research institutions
> Lack of S&T programs for students
> Lack of industry involvement in academic
programs and research
New technology niches identified
> Potential niche areas: Semiconductors,
microelectronics, grid computing, language
engineering, information security
> Need for flexible approach towards
researchers' equity ownership in spin-off
companies
> Rubber: Processing, biotech (new products)
> Oil palm biomass & biofuel: Oleochemical,
biotech (e.g: Nutraceutical, pharmaceutical)
> Oil & gas : Oil recovery technologies
> Advanced materials: Photonics, polymer
composites, energy storage devices
> Advanced manufacturing: Robotics, smart
sensors, high-technology packaging
> Aerospace: Small aircrafts, MRO1), NSP2)
10th
Malaysian
Plan
> Need for more venture capital activity
and improvement in access to financial
support for SMEs
> Lack of incentives for knowledge transfer
> Need for refocused corridors on key
industry clusters attracting both
competitive MNCs and SMEs
> Lack of product acceptability, branding and
cross-discipline expertise
> Nanotechnology: Nanoparticles, machining,
nanostructured catalysts and membranes
> Potential niche areas : Digital content
development, e-commerce, SSO, esolutions, bioinformatics
Key implications for Cyberjaya
> Cyberjaya has to build a comprehensive ecosystem conducive for the transfer of knowledge from overseas
MNCs to local firms
1) Maintenance, Repair and Overhaul , 2) National Satellite
>
Innovation efforts should be geared towards developing potential commercialization opportunities
Program
A2.
Cyberjaya’s current situation
Cyberjaya has undergone significant development since its
establishment in 1996 – It now faces a depleting land bank
 Overview of Cyberjaya land developments
Cyberjaya – the nucleus of MSC Malaysia
Cyberjaya
Lake
Gardens
Lim Kok Wing
University
Multimedia
University
Cyberview Resort
& Spa
Developments
> Spanning approximately 7,000 acres, Cyberjaya was
developed with high-tech infrastructure and infostructure to
encourage global corporations to set up ICT operations – ~800
companies and ~35,000 knowledge workers
> Home to 6 colleges/universities and ~23,000 students
> Notable features: Dedicated backup electricity supply, high
speed fiber connectivity, district cooling system, carrier
neutral data centers
Undeveloped land
Land under construction
Existing buildings
Green lung/parks
Schools/universities/public services buildings
> However, following significant developments within the
township, Cyberjaya now faces depleting land bank
> Cyberview will need to strategize its future development
plans taking into account the remaining land bank available
Cyberjaya has grown steadily, with rapid growth in office
occupancy and number of companies operating
Number of knowledge
workers [#]
35,000
Office space [m sq ft] & occupancy [%]
CAGR
29,979
70%
CAGR
7.1
8%
65%
6.9
8%
2011
2013
3%
2011
Knowledge workers
Office space
Student population [#]
23,000
21,986
Occupancy
2012
E
Number of companies operating [#]
815
CAGR
621
2%
2011
Student population
CAGR
2013
15%
2011
2013
Number of companies
Over its short 18-year history, Cyberview has evolved from a
landowner to becoming an active Cyber City Manager
 Cyberjaya development: Timeline
1996
2003 / 2004
Phase I:
Establishment
of an ICT hub
Phase II:
Growing into a
global ICT hub
Today
2010 / 2011
Phase III:
Sustaining
competitiveness
2020
Phase IV:
Transition to Global
Technology Hub
Establishment of
physical infrastructure
(e.g. fibre optic cabling,
dual feed power
system)
Growth in number of MNCs Sustaining competitiveness
(e.g. Dell, IBM, Ericsson),
amidst aggressive rollout of new
local companies and startcybercentres nationwide
ups in Cyberjaya
Cyberview's
role
Landowner
Develop basic
infrastructure to
enhance attractiveness
Facilitator
Cyber City Manager
Sell and lease land,
Drive growth of Cyberjaya to transform it from a premier global
construct buildings, support ICT hub into a global technology hub
MSC via Cyberjaya dev't
Multimedia
Super
Corridor:
Key strategic
thrusts
> Developing the local > Building ICT as an enabler > Creating global test bed for
ICT industry
for growth
new multimedia/IT
> Establishing 1 corridor > Rollout of MSC cyberapplications
(i.e. Cyberjaya)
centre/city status to 14
> Aggressive rollout to 19 new
> Launch of 7 flagship
new qualified locations2)
qualified locations
applications1)
> Deeper implementation of nationwide3)
7 flagship applications
> Focusing on 4 new clusters
(creative multimedia, SSO,
infotech, IHL4) & incubators)
Key
developments
in Cyberjaya
Aspiration to transform into a
global technology hub in the
face of competition locally and
overseas
> Expanding MSC Malaysia to
encompass the whole of
Malaysia
> Linkage of MSC cyber-cities
to global cities
1) E-goverment, MyKad, Smart School, Telehealth, R&D cluster, E-business and Technopreneur Development; 2) in KL, Perak, Johor and Melaka;
3) Klang Valley, Penang, Kedah, Melaka, Perak, Johor and Pahang; 4) Institutions of higher learning
Cyberview's official vision, mission and objectives have
recently been adjusted to reflect the new strategic direction
for Cyberjaya
 Changes to vision, mission statement & objectives
Vision
Mission
statement
Objectives
Previous
As of 6 Dec 2013
"To become the preferred investment location
in the region for technology companies that
harmonises the dynamics of human,
environment and technology."
"Leader in the development of Global Technology
Hubs."
"To realize Cyberjaya as a premier ICT hub and
to be preferred location for ICT, Multimedia
and Services innovation and operations; and
to fulfill specific Government initiatives in
support of the innovation economy by 2020."
"To provide the ecosystem in creating a preferred
investment location for technology companies,
with Cyberjaya as the showcase."
"Cyberview's main objective is to ensure the
development of Cyberjaya in accordance with
the Government guidelines and aspirations
and to also advise the Government on
MSC/Cyberjaya development matters."
Primary Objective: Elevate Cyberjaya into a
Global Technology Hub
Secondary Objective: Strengthen Cyberview’s
position to become Leader in the development of
Global Technology Hubs
Cyberview needs to play different roles depending on the life-cycle
stage of the technologies it wishes to promote in Cyberjaya
 Cyberview: Potential roles in technology promotion
Technology
life-cycle stage
More
active
I
Emerging
(Innovation)
> Single agency currently does not exist to nurture
technology
> Cyberview can play a galvanizing role to form
agency and serve as key driving force to transform
Cyberjaya into a hub for the emerging technology
Early stage
(Syndication)
> Relevant agencies exist but technology cuts across
multiple
> Roles not clearly delineated among agencies
> Cyberview can serve as active advocate to promote
the technology among relevant agencies
Mature
(Diffusion &
Substitution)
> Established agencies with clearly defined roles and
action plans to develop the technology
> Cyberview can serve as intermediary to facilitate
discussions among stakeholders, incl. companies
looking to set up, investors and property owners
Driver
II
Champion
III
Facilitator
More
passive
To achieve its vision, Cyberjaya must overcome certain
challenges to develop a competitive edge and build up the
necessary resources
• Cyberjaya: Key challenges for the future
Area
A
Competition
B
Resources
Description/implication
Challenge
1
Growing
competition
1
Talent
shortage &
mismatch
Stiffening competition from
local and foreign innovation
hubs
Lack of skilled manpower
especially in high technology
applications
> Liberalization of cyber-centre status to more locations nationwide has
increased competition, leading to certain lost accounts for Cyberjaya
> Financial incentives and relocation requirement no longer sufficient to
support Cyberjaya's growth – Need to build a competitive edge
> Cyberjaya also faces competition from regional science and technology
parks, e.g. Biopolis in Singapore (healthcare) and Hsinchu in Taiwan (hightech)
> Significant challenge in attracting the right talent to Cyberjaya has been a
major deterrent to high tech foreign investors looking to set-up high-value
operations
> Talent retention is also an issue with high staff poaching
> Further alignment with universities required in order to ensure programs
that produce the required talent and skills to meet Cyberjaya's demands
2
Lack of "soft" infrastructure
Lack of infra- for a "livable township" –
structure
"Hard" infrastructure in need
of upgrade
3
Lack of
funding
Lack of funds for investments,
and the risk of having low
investor take-up
> To be a complete and livable city, Cyberjaya requires investments in
additional infrastructure such as hospitals, mosques, and other amenities
> Its vision of being a global technology hub also necessitates upgrades to its
existing infrastructure including wi-fi enhancements and ultra-broadband
> Meaningful seed funding is required for start-ups in new technology areas
– Need to attract angel investors and venture capital
> Developing Cyberjaya to a global technology hub also requires significant
financial investments for infrastructure upgrade
> These challenges will serve as a guide for the team to develop shortlisting criteria for the technology selection phase
> They will also be treated as gaps to bridge in Phase III (Strategy & Requirements)
These challenges were taken into account in the technology
selection phase and treated as gaps to bridge
Cyberjaya: Key challenges for the future (cont'd)
Area
C
Networks
Challenge
1
Poor link
bet. R&D &
business
Incomplete ecosystem for
high-value research
> The ecosystem for high-value applied R&D is still immature – Lack of
university-industry commercial partnerships to perform research that is
commercially viable
> Local companies do not sufficiently engage in meaningful R&D
2
Poor
knowledge
transfer
Lack of success in technology
transfer from MNCs to local
counterparts
> Limited interaction between MNCs and local companies to allow for
technology transfer
> Lack of sharing culture between MNCs and GLCs with local companies in
Cyberjaya
3
Lack of support and
opportunities for SMEs
> Poor linkages between SMEs and government agencies – Malaysian
government is the largest spender on high-technology products, yet there is
limited use of local technologies by the government
1
Unclear
role
definitions
Potential conflict of interest
among main stakeholders in
Cyberjaya
> Clear distinction of roles required between multiple entities governing
Cyberjaya's development, e.g. Cyberview, local state authority, Setia Haruman
and MDEC, to avoid potential conflicts
2
Need for clarity of positioning
and stakeholder buy-in
> Need for translation of Cyberview's vision into clear actionable plans and KPIs
> The new vision must be cascaded to all staff members via communication
programmes to ensure buy-in
Inadequate
SME support
D
Governance
& regulation
Description/implication
Lack of
clear vision
> These challenges will serve as a guide for the team to develop shortlisting criteria for the technology selection phase
> They will also be treated as gaps to bridge in Phase III (Strategy & Requirements)
In addition, Cyberjaya still has considerable room for
improvement in developing itself into a holistic, liveable
township
 Township elements: Assessment of Cyberjaya
Comments

Physical connectivity
> Good highway access
> Lack of public
transportation into
and within Cyberjaya
Physical amenities

Digital connectivity
> Slow speed of fixed
broadband network
> Inadequate wireless
network connection
and speed
> Dual feed power supply
> Proper water supply and
sewerage systems
> Centralised district cooling
system

Residential property

Commercial activity/
Entertainment
> Growing number of
F&B outlets
> Insufficient retail
outlets, malls and
entertainment
Hard infrastructure

Recreational space
Elements of a
Comprehensive
township
> Prevalence of homes for
mid-high income levels
> Lack of affordable housing

Healthcare
services
> Cyberpark
> Putrajaya lake
> Community club
house

Education system
> Several public and
private schools
> Several colleges and
universities (e.g. MMU,
LimKokWing, CUCMS)
> No hospital within Cyberjaya
> Lack of clinics / doctors
Soft infrastructure

Good or adequate


> Hard infrastructure is
mostly in place – But
improvements needed
in physical & digital
connectivity to make
city more attractive
> Still lagging in softer
infrastructure – Need
to increase commercial
vibrancy and improve
access to healthcare &
other amenities
> Chicken-and-egg
problem: How to
attract critical mass of
residents to entice
service providers to set
up facilities?
Lacking
A3.
Technology trends that are shaping
Asia Pacific
Six key drivers are shaping the landscape of technology
trends in Asia Pacific
Asia Pacific key drivers of technology trends
Connected intelligence
Data to insights
Scarcity of resources
Climate change
Life science solutions
Reverse innovation
Everything from consumers, cities, supply chains, homes, commerce and
enterprises will be connected through the internet, fundamentally changing how
we conduct our daily lives
The digital age continues to drive a surge in data generation – The strive to gain
more granular insights from this influx of data will be a crucial competitive
differentiator
The scarcity of energy and resources, fueled by strong demand in emerging
markets, will drive a push for new energy management solutions
Sustained pressure to stem climate change will necessitate investments into the
fields of sustainable development, renewables and green technology
Life sciences will be a prime focus of research in the coming decades and will
provide solutions to many health and resource-based problems of the world
Future innovations will be developed and adopted first in emerging markets, as
opposed to being adopted first in matured markets before being trickled down to
the emerging markets
A hyper-connected world and the increased influx of data will
present new technological innovations and possibilities
Key drivers (1/3)
1 Connected intelligence
2
Implications
> Trend description:
– Various computing
devices will be
connected together
through the internet
– This will connect
consumers, cities,
supply chains, homes,
commerce and
enterprises and
revolutionize the way
we conduct our daily
business
> Various new opportunities
exist in the onset of
connected intelligence, for
example:
– Cities: Traffic monitoring,
infrastructure
management
– Supply chains: Speed to
market, streamlined
process
– Homes: Lighting and
energy management,
smart meters
– Commerce: Digital media
signage, vending machines
– Enterprises: Connected
workforce, automated
business processes
– Consumers: Wearables
Data to insights
Implications
> Businesses evolve to
leverage available data to
yield insights into their
customer base and make
more informed data-based
decisions and achieve a
– The digitalization of data
competitive edge
is increasingly driven by
internet usage growth, > Yields many new
increased mobility, social technology opportunity
areas e.g., data centers,
media, digitalization of
conventional formats and analytics services,
consulting services etc.
improved technology
performance
> Broad based sector
applications e.g., retail,
– More sophisticated
manufacturing, banking,
analytics today helps to
health care, public sector
make sense out of the
administration, personal
data influx and create
location data applications
economic value
etc.
Source: Gartner; IDC
Strong economic growth in emerging markets will intensify
the scarcity of resources and issues of climate change issues
Key drivers (2/3)
3 Scarcity of resources
4 Climate change
Implications
– Population and economic
growth, urbanization and
expanding middle class
will increase demand for
energy and resources
– Securing reliable and
economically viable
access, promoting
efficient usage, demand
management and
formulating new energy
and resource paradigms
will be on top of the
agenda
> New innovations and
technological paradigms
will be needed to better
manage the scarcity of
energy and resources
> This would include
research and
commercialization of green
and sustainable
technologies, energy
efficient technologies e.g.,
smart grids, recycling and
new energy supply and
delivery methods e.g., biobased fuels
Implications
– Increasing
concentrations of
greenhouse gases have
been a main driver of
rising temperatures
resulting in various
environmental
implications
– Sustained dominant
share of hydrocarbon
fuels in the energy mix
and rapid economic
growth in developing
nations sustain CO2
emissions
> Smart urbanization needed
in the developing world –
balancing economic
growth imperatives with
environmental
sustainability
> Commercialization of
green and sustainable
technologies, renewable
energy technologies e.g.,
solar, wind, energy storage,
smart grids etc. will need
to be accelerated
> New green mobility
concepts will be groundtested and adopted
Source: RBSE Trend Compendium 2030
Asia Pacific will become a hub for innovation while the life
sciences will open the door to new technological innovations
Key drivers (3/3)
5
6 Reverse innovation
Life science solutions
Implications
> The life sciences can
potentially offer novel
solutions to major
problems faced by the
world today e.g., energy
scarcity, poverty, food
– Basic technological
security, climate change
innovations often come
etc.
in certain cycles e.g., the
> Research and development
invention of the steam
in life sciences will spur
engine, telegraphy,
new discoveries and
automobile, nuclear,
technologies in the fields
aerospace, ICT
of pharmaceuticals,
– The theme of the next
medicine, biotechnology
cycle will be life sciences
(agricultural, industrial,
– and will drive solutions
medical) etc.
to various health and
resource problems
Implications
> The traditional strategy of
innovating for home
markets (developed
countries) and exporting
with minor modifications
to local market needs no
– A reverse innovation is
longer works
any innovation that is
> To win in emerging
adopted first in the
markets – the innovation
developing world
of technology must be
– Traditionally, innovations local and may even later be
flow from the developed
exported from the
world to the developing
developing world to the
world – this no longer
developed world
holds true, and in fact,
> Innovation must today
the reverse is occuring
happen in close proximity
to its market base
Source: RBSE Trend Compendium 2030; "Reverse Innovation" – Vijay Govindarajan & Chris Trimble
A4.
Benchmarking of other
technology hubs
Tech hubs go through several stages in their development – Global
innovation hubs are holistic, set trends and are linked to other hubs
 Stages of innovation centre development
Complexity/
Developmental
Maturity
Uncoordinated
innovation
activities
> Spontaneous "green
shoots" of R&D activity –
No centralized planning
> Growth typically stems
from proximity to
universities and other
institutes
Phase I
(Phase I may be skipped if
development is heavily state-led)
Regional cluster
program
> Beginnings of central
coordination by state or
private enterprise
> Lack of dedicated
infrastructure and endto-end eco-system
Phase II
Global innovation
hub
Science &
technology park
> Well-defined area with
dedicated infrastructure
and resources
> Proactive policy to attract
talent and companies
> Linkages to other hubs
may not be strong
Phase III
> Trend-setter – Model for
other hubs
> Complete eco-system –
Symbiosis of start-ups,
SMEs and big business
(local & foreign)
> End-to-end support for
whole value chain
(research to
commercialization)
> Strong links to other
hubs
Phase IV
Infrastructure development
Completeness of innovation eco-system
Source: "Understanding Research, Science & Technology Park – Global Best Practices" – National Academies Press
Age
There is no single path to success for innovation hubs – Whatever
the model, there needs to be active enterprise champions
 Alternative innovation hub models
State-driven
Enterprise-led
Role of government
Model
I
II
Government-led
innovation
Mixed approach
Hub organically forms
over time due to
naturally conducive
environment
> E.g. around research
institutes that attract an
entrepreneurial
community
> No active push by
government initially
> Broad category with
varying combinations of
involvement from state,
academia and private
sector
> State involved in some
aspects, but not the key
driving force
> Construction of
infrastructure results
from deliberate
government planning
> State-sponsored
research programs form
the main organizational
kernel
> Incentives proactively
used to attract talent
San Diego
London's Tech city
Dhahran TechnoValley
Description>
Example
s
III
Organic growth
Enterprise champions
Qualcomm
Comments
> Paths of successful hubs vary
widely – No single recipe for
success
> Models involve varying
degrees of involvement from
the state, academia and the
private sector
> Whatever the model, each
hub invariably involves
participation of large
enterprises as hub champions
> Champions serve critical roles
e.g. provide capital and talent,
offer inter-regional and –
national connections, help
bridge commercialization gap
Google
For an innovation hub to be successful, it also needs to create a
conducive ecosystem for the entire span of the tech value chain
 Innovation hub value chain
Commercialization
Research
Development
Early
stage (premarket)
Early-stage
basic
research
✓
✓
✓
✓
✓
✓
Advanced,
focussed
research
Technology
development
Prototype
development
Prototype
production
Operations
Late stage
(market
entry)
Market
launch
Sales &
marketing
Product
refinement
An effective innovation hub needs to:+ Enable efficient access to capital and expertise
+ Ensure strong intellectual property protection
+ Establish a self-sustaining eco-system to support advanced R&D
+ Attract world-class business and scientific talent, and leverage local talent pool
+ Build a leading business and regulatory environment supportive of new ventures
+ Generate external market demand
Source: 2013 Global Innovation Index Report (INSEAD, WIPO,)
We identified 6 leading science & technology parks around
the world to draw insights and distill key success factors
 Shortlisted science & technology parks
2 Sophia
Shortlisting
criteria
> Degree of "selfcontained"ness (hard &
soft
infrastructure)
> Sectoral focus
& niche
technologies
> Perceived
standing
among other
tech parks in
the world
> Geographic
diversity
Antipolis1)
Europe (>125
parks)
U.S.
(>150 parks)
4 Daedok
Innopol
is
Japan
(>100 parks)
China
(>100 parks)
3 Cambridge
Science
Park
1 Research
Triangle
Park 1)
6 Zhangjian
g Hi-Tech
Park
Cyberjaya
5 One-North
Source: UNESCO
A benchmarking study was conducted to identify the best practices
required to provide the right environment to foster innovation
 Outcome of benchmarking study: Summary
Research
Triangle
Park
Criteria
Content
1 Resources
> Access to talent
> Funding
opportunities
> Quality of
infrastructure
2 Network
> Linkage between
research institutes
and industry
> Knowledge transfer
between players
> Support systems
&
3 Regulation
Governance
> Clarity of roles in STP
development
> Clear vision for the
STP
> Incentives
Overall
assessment
Excellent
SophiaAntipolis
Cambridg
e Science
Park
Daedok
Innopolis
OneNorth
ZhangJiang
Park
> Overall quality of the
environment
Very good
Good
Fair
Cyberjaya
We studied the background and developments in each
benchmark science and technology park…
Overview of Research Triangle Park
Concept
Key
characteristics
Focus area(s)
ILLUSTRATIVE EXAMPLE1)
> World's largest university-related research park, situated
between UNC-Chapel Hill, Duke & N.C. State University
> Initially grew by attracting branches of Fortune 500 firms
> Established in 1959
> Park size: Total of 7,000 acres
> Mixed model of growth – Govt was a key driver in
initial stage but minimal federal intervention today
>
>
>
>
Biotechnology & Life Sciences
Information Technologies
Nanotechnologies
Wireless Telecommunications
Latest developments
> The Research Triangle Foundation announced it has been buying up
several adjacent properties for mixed-use growth and focusing on
providing improved living conditions to local workers and scientists
> Park management wants to focus on making park more attractive to
smaller entrepreneurial firms
Examples of major tenants
Biotech & Life Science
Technologies
Information
1) Other benchmark slides are included in the Appendix
Source: RTP Concise Public Master Plan
… and assessed their strengths and weaknesses according to
the benchmarking criteria
Assessment of Research Triangle Park
Resources
Network
Talent
> Steady flow of talented graduates from the 3 funding universities
Infrastructure
> Conference center, high-quality broadband, recreational activities
> A new regional tram system to be built, and new housing and residential spaces
> 5 incubators available on-site, providing services and advice
Funding
> Numerous venture capital firms implanted
> Presence of organization offering research financing support (e.g: Biotechnology Center)
Linkage between research
institutes and industry
Knowledge transfer
Support systems
Clarity of roles & objectives
Regulation
for STP development
& Governance
> Numerous invention disclosures and licence agreements with university departments
> Public-private partnerships remain very common in the park's activities, especially with
universities
> Efforts made to introduce multi-use, cooperative spaces and shared amenities designed to
foster collaboration and unity
> Networking events organized to foster open exchange of ideas (e.g: Get connected @ RTP)
> Host several iconic organizations and networks (e,g: IUPAC, the Hamner, the William
Burroughs Welcome Fund, or Sigma Xi) to help recently created companies
> Stable management by The Research Triangle Foundation of North Carolina, a non-profit
organization
Clear vision
> Clear vision mapped out in the Master Plan 2011
> However, lack of measurable objectives in the Master plan
Clear incentives
> No funding for potential tenants / specific grants for locating within the boundaries of RTP
> Incentives to be found through state and regional agencies, especially for specific
industries, such as digital media and biotechnology
Source: RTP Concise Public Master Plan
We identified that multiple factors can contribute to the
success of different STPs around the globe
 Key Success Factors
Public-Private Partnerships
The close collaboration of industry, academia and government to
invest in science parks and create co-development programs
Presence of committed champions
(leaders)
Key leader/advocate of science park can foster the park's
innovation capabilities and technology knowledge
Existing networks & communities
Official and unofficial networks can improve knowledge circulation
and support growth of innovative ideas
Proximity of R&D institutes and a high
collaboration of research resources
Essential value chain components for higher-end R&D
Focus on knowledge transfer
Encouraging collaboration and use of shared spaces is key to retain
value-added activities within the park
Excellent park management
Management organized with clear roles and a strong vision of the
direction the park should follow for its expansion
Liveable city
Improvement of the quality of life offered for workers is key to
attracting and retaining talent
Source: Team analysis
We also selected 7 leading start-up city hubs across different regions to learn how
each one nurtured its own start-up community
 Top 20 start-up ecosystems, 20121)
Talent index2)
24
Selected start-up ecosystems for
benchmarking:
Silicon Valley
Los Angeles
20
Tel Aviv
#2: Tel Aviv (Middle East)
Seattle
#3: Los Angeles (North America)
Vancouver
16
#7: London (Europe)
London
#12: Sydney (Australia)
Boston
#13: Sao Paulo (South America)
Sydney
12
Singapore
8
Melbourne
Berlin
#17: Singapore (Asia)
New York City
Moscow
Chicago
#19: Bangalore (Asia)
Toronto
Waterloo
Paris
4
Santiago
Sao Paulo
Bangalore
Support Index3)
0
0
2
North America
4
Middle East
6
8
Europe
10
Australia
12
14
South America
16
18
20
22
Asia
1) Bubble size indicates ranking of each city, where Silicon Valley ranks as 1st and Santiago as 20th; 2) Talent index measures the skills of the start-up founders in each
start-up ecosystem, taking into account age, education, startup experience, etc; 3) Support index measures the quality of the startup ecosystem support network
Source: Startup Ecosystem Report 2012 (Startup Genome)
The selected start-up hubs were benchmarked from four
different angles – Funding, talent, support and trendsetting
 Benchmarking criteria
Funding
index
Talent
index
Support
index
Trendsetting
index
Measures how active and how comprehensive the risk capital is in a startup
ecosystem
Measures how talented the founders in a given startup ecosystem are, taking into
account age, education, startup experience, industry domain expertise, ability to
mitigate risk and previous startup success rate
Measures the quality of the startup ecosystem’s support network, including the
prevalence of mentorship, service providers and types of funding sources
Measures how quickly a startup ecosystem adopts new technologies,
management processes, and business models, where startup ecosystems that
stay on the cutting edge are expected to perform better over time
Source: Startup Ecosystem Report 2012 (Startup Genome)
We assessed and profiled each benchmark start-up ecosystem
Los Angeles Start-up Ecosystem
Overview
Index scoring
Funding
Index
20
15
10
5
0
Trendsetter
Index
Funding
14
Talent index
Talent
19
Support
index
Description
Notable
start-ups
> Ranked 3rd in global start-ups ranking,
with approximately 800 start-ups
> USD500 million raised in funding in H1
2013
>
>
>
>
e-Commerce
Digital media
Crowdsourcing
Online apps
Support
17
Trendsetting
10
> No funding gap – Healthy mix of capital
sources
> Prevalence of early-stage funds (Lowercase
Capital, Karlin Ventures, SV Angel, Plus Capital,
and Double M Capital)
> Large supply of technology-qualified talent
from L.A.'s local universities
> Talent is honed via entrepreneurship programs
in universities in partnership with local
accelerators
> Exemplary accelerator and incubator
infrastructure – Influx since 2011 has provided
educational, collaborative and supportive
environments for entrepreneurs and start-ups
> Strong in creative content creation, particularly
in entertainment, aerospace, fashion, and
advertising
> Quick to adopt new technology (e.g.
programming languages like Python and Ruby)
Source: Startup Ecosystem Report 2012 (Startup Genome); LA Startup Ecosystem 2013 (Be Great Partners)
We found that several key factors contribute to the success of
start-up cities around the world
 Key success factors
1
Talent pool with entrepreneurial culture
2
Strong support network and communities
Active accelerators and incubators to provide mentorship and
networking support to entrepreneurs and start-ups
3
Regulatory incentives
Government grants to facilitate startups and incentives to
promote angel investments
(applies to a nascent start-up city)
Pool of highly skilled talent with entrepreneurial mindset
Ease of doing business environment, including supportive legislation
for starting new businesses and new funding structures, as well as
minimal bureaucracy
4
Conducive business environment
5
Vibrant city with complete infrastructure and
ecosystem
6
Availability of funding
Availability of angel and venture capital funding to provide the
seed capital for start-ups
7
Established technology sector or niche
Established technology sector or niche provides strong base of
technology talent and entrepreneurial spin-offs
Holistic and dynamic city and living environment to attract the
best global talent as well as diversity of talent
B. KEY TECHNOLOGY AREAS
B1.
Overview of selected technologies
The Blueprint concluded with the selection of 5 carefully
selected technology areas
 Selection approach
Focus industries
Universe of
relevant
technology areas
11 + 9
NKEAs add-ons
Filter
Filter
Filter
1
159
30
15
technologies
technologies
technologies
Filter
1
Filter
2
Relevance and fit with Malaysia 30%
Relevance to national economic strategy,
Leverage of internal capabilities 30%
Availability of talent base, access to raw
alignment & fit with capabilities, talent and
resource
materials, local ecosystem & size of applicable
industries
Current size
Market size, global R&D spend, number of local
and international players
Overall development potential
Future market growth, 'spillover' effect,
commercial viability of final output
Breadth of application
Number of applicable industries, importance of
industries to Malaysian economy
%
25%
Fit with CJ context /
environment
CJ's competitive proposition
20%
Technology potential /
readiness
Existence / strength of regional competition,
competitive advantages, spillover potential
Technology maturity, commercialization
potential, complexity of value chain
3
5
technologies
3
Demand for technology
Size and growth, amount of VC funding, number
of global patents
25%
Relevant companies
25%
Key enablers
20%
Point of differentiation
Relevance to ICT, pre-existing infrastructure and
ecosystem, barriers to building infrastructure in CJ
25%
Filter
2
Number and strength of large companies in the
technology space globally
Number of companies in CJ and availability of
talent
Differentiation against local and regional
competition
Weightage of criteria
20%
10%
35%
35%
The 5 technology focus areas comprise of ICT related technologies
and 4 non-ICT technologies, beyond Cyberjaya's traditional core
Focus technology areas
Other
technologies
ICT
5 technology focus areas
5 ICT technology sub-segments
ICT technologies
Information security
Green technology
Creative content technologies
Biotechnology
Mobile internet
Wearable technologies
Cloud computing
Smart grid technology
Big data analytics
The final portfolio of technologies have strong synergies
with ICT core, as well as linkages with one another
 Mapping of final technology portfolio
SSO 3)
Cloud
computing
Informatio
n
security
IT
Smart
sensors
Smart
grids
Renewa
ble
energies
Green technology
Cloud
data 1)
BDA
Bioinfo
BioTechnology
Fraud
detecti
on
Networ
k
security
Creative
multimedia
Mobile
internet Mobil
e apps
Creative content
technologies
AR2)
> Portfolio emphasizes key
role of ICT in Cyberjaya
> 4 new technologies are
not directly ICT-related
and allows Cyberjaya to
diversify
> However, linkages with
ICT still exist (e.g.
bioinformatics combines
biotech & IT; AR2) is
relevant in creative
multimedia and
wearable technologies)
> Balance between
mature tech (e.g.
creative content) &
cutting edge (e.g.
wearables)
Biofuels
MSC focus areas
Directly ICT-related
Not directly ICT-related
1) Big data analytics 2) Augmented reality 3) Focus is on higher-value SSO activities e.g. KPOs
B2.
Technology and competition
overview: ICT-related technologies
Technology profile: ICT – Information security
Global market for info security could reach USD 93 bn in 2017
Key global companies
Homegrown
companies
Profile: Information security
Description
Subcategories
> Technologies aimed at protecting integrity & safety of information
system resources & activities, and defending against unauthorized access
> With IT systems' thorough infusion into government organizations, business and infrastructure, security has risen to the forefront of concerns
> Access Control Systems
> Application security (e.g.
antivirus, secure coding)
5
4
Internal
capabilities
in Malaysia
3
2
> Authentication & authorization
> Intrusion detection &
prevention
1
5
4
> Growing interest, as seen with recent deal activities (e.g. Q1 Labs by IBM,
SonicWALL by Dell, or nCircle by Tripwire in 2013)
> Healthy growth driven by the increasing complexity & volume of
targeted attacks, and the necessity of companies to address regulatory
issues
Size &
potential
Fit with
Cyberjaya
3
2
5
Competitive
value
proposition
CAGR: +8.5%
67
2012
2013
86
93
2016
2017
Applicable
sectors
Electronics
&Electrical
Technology
potential &
readiness
Defence &
Security
Business
Services
2
> Currently no specific hub in Malaysia
> Existing regional competition – S'pore with
attractive incentives under Infocomm
Roadmap, or Ochang Park (Korea)
> Data centres & IMPACT can serve as test-beds
for commercial applications
4
3
2
> Info security solutions already being
commercialized
> Strong demand growth benefiting from growth
of e-commerce, big data and the increasing
number of personal devices
1
Additional sectors proposed by RB
1) M'sian Common Criteria Evaluation & Certification, 2) Faculty for Information Science & Technology
Source: Gartner
3
5
Comms
content &
infra
National Key Economic Area (NKEA)
4
1
Source: Gartner
Financial
Services
> Strong fit – Concentration of data centres and
highly relevant to ICT activities
> IMPACT is headquartered in Cyberjaya, and
MOSTI also plans to site its CyberSecurity HQ
> CIS, Centre for Information Security (Center of
Excellence) is housed by the FIST2) in MMU
1
Global sales revenue for information security market [USD bn], 2012 – 2016E
62
> Strongly supported by MOSTI (e.g. named as a
focus area for the country in ICT, creation of
CyberSecurity Malaysia in 2007)
> Existing programs to supply talent (e.g. UTM,
MMU)
> Establishment of MyCC Scheme 1)
5
Excellent
4
Very good
3
Good
2
Fair
1
Poor
Regional competition: ICT – Information security
S'pore becoming a hub for business IT security – Northern Asian
countries already have well-developed cyber-security sectors
 Information security: Level of regional activity
Singapore
South Korea
> Core area of IDA's National Cyber
Security Masterplan 2018 (e.g.
scholarships for information
security students, creation of
AISP1))
> Recognized expertise in the field
of data security and recovery
(e.g. Myung Information
Technologies)
> Several cyber security centers
(e.g: FireEye, KPMG)
> MOUs inked with Japan and
South Korea to collaborate in
cyber security matters
> Technavio expects the cyber
security market in Korea to post
a CAGR of 21% during the period
2013-2018 due to rising security
threats
South Korea
> Highly-skilled workforce
available
Taiwan
India
Myanmar
Laos
Thailand
Japan
China
> Japan aims to double the size of
its domestic information security
market by 2020 as part of its
national cyber-security strategy
(Source: NISC)
> Cyber security market revenues
up to USD 4.9 bn in 2012, and
could double by 2017 (Source:
ABI Research)
> NISC2) aims to improve the
overall level of information
security in Japan (e.g. set to sign a
cyber-security agreement with
the European Union)
> Financial Incentives for R&D
investments in the information
security industry offered by the
Chinese Ministry of Commerce
(MOFCOM)
> Growing pool of local companies
(e.g. CIST3))
Japan
China
Philippines
Vietnam
Cambodia
Brunei
Malaysia
Singapore
Aspiring technology hub
Indonesia
Intensity of regional competition: Moderate
> China, S. Korea & Japan already have advanced information security industries
> Within SEA, Singapore fast establishing itself as a regional hub for business information
security
1) Association for Information Security Professionals 2) National Information Security
Centre 3) China Information Security Technology
Extremely high
competition
High competition
Moderate
competition
Low
competition
Technology profile: ICT – Creative content technologies
Creative content technologies relate to the development and
production of multimedia content
Homegrown
companies
Profile: Creative content technologies
Description
Subcategories
> Refers to all technologies related to the development & production of
multimedia content
> Includes both conventional technology (e.g. 3D animation; interactive
media) and more avant-garde areas like virtual & augmented reality
> Animated content production
> Augmented Reality (AR)
> Virtual Reality (VR)
5
Internal
capabilities
in Malaysia
> Multimedia gaming (e.g.
alternate reality gaming)
> Interactive media
5
4
Fit with
Cyberjaya
3
2
1
Video games
5
Filmed entertainment
CAGR: +3.7%
CAGR: +6.5%
2012
87
89
106
2017
2012
2017
Competitive
value
proposition
Tourism
Comms
content &
infra
3
2
5
Automotive
Electronics
&Electrical
Healthcare
Shipping
Education
Aviation &
Avionics
Defence &
Security
4
1) National Film Development Corporation Malaysia, 2) Creative Multimedia Cluster
> Strong synergies between ICT and AR/VR (e.g :
in e-learning field)
> Talent available (e.g. MMU, Limkokwing)
> Existing production facilities and animation
companies (e.g. Giggle Garage, or KRU, coproducer of the 3D animated comedy Ribbit)
> Currently no specific designated hubs or zones
in Malaysia
> Competition with Mediapolis in One-North
Singapore – Already attracted Lucasfilm
> Can benefit from the close collaboration of
digital content industry and MSC
1
Source: PwC Global Media Report
Source: PwC
2
Global sales revenue for Video Games and Filmed Entertainment
[USD bn], 2012 – 17e
63
Applicable
sectors
3
1
> Increased interest in AR/VR start-ups companies globally (e.g. acquisition
of Oculus Rift by Facebook for USD 2 bn)
Size &
potential
4
> Strong national support: FINAS1) (agency
responsible of developing the film industry),
"Film in Malaysia Incentive" (FIMI) and the
Creative Industry Development Fund
> MSC Malaysia already focuses on creative
content development, and set up the CMC2)
Technology
potential &
readiness
4
3
2
> Technology already developed and widely
commercialized (e.g. apps, location-based
services, Google Glass)
> Strong potential for new applications of AR/VR
(e.g. consumer electronics; auto)
1
5
Excellent
4
Very good
3
Good
2
Fair
1
Poor
Regional competition: ICT – Creative content technologies
Singapore making big push in creative content, while other countries
have ready markets for content – Cyberjaya needs niche positioning
 Creative content technologies: Level of regional activity
Singapore
South Korea
>
> Strong consumption of online
computer games (e.g. Nexus)
IDA1)
initiated the Digital
Marketplace Programme to
support the content industry
> Heavyweights attracted incl.
LucasFilms, Walt Disney,
Electronic Arts Asian HQ
> Mediapolis seeks to be a
regional digital content hub
> DigiPen, a leading institute for
gaming and animation has a
campus in Singapore
> KOOCA2) offer loans for co's to
finance content development
> Global leader in 4G penetration
& LTE subscription, USD 1.7 bn
plan to roll-out 5G network –
attractive for new media
services such as mobile movie
streaming or mobile TV
South Korea
Taiwan
India
Myanmar
Laos
Thailand
Japan
India
> Pioneer in mobile content
services (e.g. NTT DoCoMo)
> Filmed entertainment revenue is
expected to expand by a CAGR
of 9.9% from 2012 to 2017, and
video games sales by 18% for the
same period (Source: PwC)
> Very attractive market: World’s
#1 country in app store revenue,
USD 5.4 bn of mobile gaming
sales in 2013 (Source:
CyberAgent Tokyo)
> Key strengths of Japan: Wellestablished creative content
players (e.g. Nintendo, Sony),
highly-skilled workforce
Japan
China
> Strong IT-skilled workforce to
support the digital content
development industry
Philippines
Vietnam
Cambodia
Brunei
Malaysia
Singapore
Indonesia
> Singapore making an aggressive play in this space and attracted heavyweights
> S. Korea content enjoys mass Asian appeal; India enjoys huge domestic market
> Need for Cyberjaya to have niche positioning (e.g. animation production)
1) Infocomm Development Authority, 2) Korea Creative Content Agency
Extremely high
competition
High competition
Moderate
competition
Low
competition
Technology profile: ICT – Mobile internet
Mobile internet usage will witness significant medium term growth
Homegrown
companies
Profile: Mobile internet
Description
Subcategories
> Also known as Web 3.0, Mobile Internet refers to access to the Internet
via a cellular telephone service provider
> It involves a combination of mobile computing devices, high-speed
wireless connectivity, and applications
Internal
capabilities
in Malaysia
> Smartphones, tablets & other > High-speed mobile connectivity
handheld devices
> Mobile software & applications
> According to McKinsey, no. of smartphones in use grew 50% in 2012 and
currently >1.1 billion people use smartphones and tablets
> Sales of smartphones projected to reach 1.3 bn units per year in 2013;
tablet sales expected to reach 200 m units
Size &
potential
5
Global mobile data traffic (exabytes per month), 2013 – 2018e
16
11
7
4
3
2
2013
2014
2015
2016
2017
Applicable
sectors
3
2
1
5
4
Fit with
Cyberjaya
3
2
5
Competitive
value
proposition
2018
4
3
2
Technology
potential &
readiness
Financial
service
Comms
content &
infra
> Strong competitive value proposition given
Cyberjaya's position as the nucleus of MSC
Malaysia; however, growing competition from
other cyber-cities & centres nationwide
> Regional competition is also strong from
Indonesia and China as mobile internet hubs
1
5
Education
> High fit with Cyberjaya given the direct ICT
relevance
> Require further growth in high value ICT
activities including new mobile software and
application R&D
> Co's in Cyberjaya incl. GoodCore Software
1
Source: Cisco
Wholesale
& retail
4
> Limited capabilities in the design and
development of new mobile devices
> However, capabilities exist in mobile software
and applications development (e.g.
GoodCore Software, Techno Softwares, iPluz,
etc)
4
3
> Relatively low technology-specific risk given
high level of technology maturity
> Numerous commercial applications already in
existence
2
1
5
Excellent
4
Very good
3
Good
2
Source:McKinsey; Cisco
Fair
1
Poor
Regional competition: ICT – Mobile internet
Active R&D programs have been launched on mobile networks and
devices in Northern Asia – Moderate level of competition within SEA
 Mobile Internet: Level of regional activity
Singapore
South Korea
> One of the leading countries
with 87% smartphone
penetration (Source: Nielsen)
> Leader in 4G penetration Science Ministry will invest USD
1.7 bn to develop and roll-out a
new 5G network
> IDA is driving cross-sectoral
application of innovative mobile
services (e.g. mGov initiative
drives the delivery of m-govt
services)
> Chosen by Qualcomm as a
regional hub for R&D on nextgeneration mobile chipsets
> R&D collaboration between state
institutes, telco players &
smartphones manufacturers
South Korea
Japan
China
> Influential research centers in
Daedeok Innopolis (e.g. KAIST1),
ETRI2) which developed WiBro
technology3))
Taiwan
India
Myanmar
Laos
Thailand
Indonesia
China
> Explosive growth of mobile
Internet due to cheap
smartphones & data packages
(e.g. #2 market for mobile ads in
the world in 2013)
> > 500 m web mobile users
according to China Internet
Network Information Center
> Heavy investments from Asian
messaging apps (e.g. LINE,
WeChat), and sprouting local
start-ups (e.g. Ruma)
> Leading telco equipment
manufacturers (e.g. Huawei, ZTE)
conducting heavy R&D in mobile
internet
> Attracted global players to
conduct R&D in the country (e.g.
Microsoft in Shenzhen,
Qualcomm in Shanghai)
Philippines
Vietnam
Cambodia
Brunei
Malaysia
Singapore
Indonesia
> Significant R&D being done on mobile networks & connectivity region-wide
> Cyberjaya can either focus on innovative mobile services, or become the test-bed for
next-generation networks in SEA
1) Korea Advanced Institute of Science and Technology, 2) Electronics & Telecomm.
Research Institute, 3) World's first high-speed mobile internet
Extremely high
competition
High competition
Moderate
competition
Low
competition
Technology profile: ICT – Cloud Computing
Cloud-based platforms will form the bulk of future IT spending
Homegrown
companies
Profile: Cloud computing
Description
Subcategories
> Involves distributed computing over a network, where a program or
application may run on many connected computers at the same time
> Relies on a group of computing hardware machines connected through a
communication network (e.g. internet, intranet, LAN, WAN)
> Infrastructure as a service
(IaaS)
> Software as a service (SaaS)
Cloud services by market segments [USD bn], 2010 – 2016E
300
Cloud Management and Security Services
24
200
18
13
Cloud System Infrastructure Services (IaaS)
33
3
4
9
28 48
6
24 43
11
13
20 39
100
31 16 35
Cloud Application Infrastructure Services (PaaS)
95
27
29
83
71
61
53
43
0 34
Cloud Application Services (SaaS)
201 201 201 201 201 201 201
0
1
2
3
4
5
6
Applicable
sectors
Financial
services
Comms
content &
infra
Electronics
&Electrical
Aviation &
Avionics
Fit with
Cyberjaya
5
4
3
2
1
> Highly relevant given Cyberjaya's ICT focus
> SME Cloud Computing Adoption Prog incentive
by MDeC to promote adoption of cloud
computing by local SMEs
> Use of cloud by a number of large ICT co's in
Cyberjaya currently, e.g. NTT, Cisco, HP
5
4
3
2
1
> Strong competitive advantage locally given
Cyberjaya's focus on ICT compared to other
domestic technology parks
> Competition from Singapore and HK as cloud
computing hubs – Countries with the most
data centres in Asia Pacific region
Competitive
value
proposition
Cloud Business Process Services (BPaaS)
Cloud Advertising
Technology
potential &
readiness
Business
services
> One of the 6 focus areas of the Strategic ICT
Roadmap
> Government is promoting development of
cloud computing to provide SMEs with critical
software applications for enterprise
management
> Platform as a service (PaaS)
> Cloud security
> Cloud engineering
> Gartner predicts bulk of new IT spending by 2016 will be for cloud
platforms, with nearly half of large enterprises using cloud by end 2017
> In M'sia, cloud computing may contribute about RM5.0 billion of GNI
and create approx. 11,500 jobs (Strategic ICT Roadmap)
Size &
potential
Internal
capabilities
in Malaysia
5
4
3
2
1
5 Excellent
5 > Relatively mature technology with broad
applications, including application hosting,
4
and network storage
3 > Leading constraints to the use of cloud include
information security, data ownership/
2
custodian responsibility, and legal issues
1
4 Very good 3 Good
2 Fair
1 Poor
Source: Garner; McKinsey
Regional competition: ICT – Cloud Computing
The cloud computing market is increasing in competition – Major
global players have opened R&D labs in China, India & Singapore
 Cloud computing: Level of regional activity
India
Singapore
> Bangalore is a hub for
innovative cloud solutions
(e.g. 'HANA' from SAP, 'Cloud
Ecosystem Hub' from
Infosys), fostering the
development of local players
(e.g. Netmagic)
> IDA3) offer financial incentives
for companies adopting cloud
solutions, or investing in R&D
activities in cloud computing
Singapore
> Active gov't efforts in cloud
services (e.g. ‘MeghRaj’
project1), use of Microsoft's
platforms for Jammu &
Kashmir e-govt services)
> Several R&D labs in cloud
computing opened in
Singapore (e.g. IBM, Intalio),
and university research
centers (e.g. in NUS, or in
Singapore Polytechnic)
South Korea
Taiwan
India
Myanmar
Laos
Thailand
Japan
China
> Fast adoption of cloud
solutions due to excellent IT
infrastructure and
broadband
> Attractive market supported
by the government (e.g.
Amazon partnership with
Beijing's municipality, IBM &
21Vianet)
> Japan should remain Asia's
largest cloud services market
until 2020 (Source: Forrester)
> Growing demand for PaaS2)
solutions (e.g. Microsoft
increasing the capacity of
Azure, IBM's new data centre
for BlueMix solutions)
> Local players in cloud
services (e.g. Alibaba, Wuxi
China)
> Several R&D labs in Beijing
(e.g. IBM, Microsoft, Yahoo!)
> China Mobile & China Unicom
will build 2 cloud computing
parks in Guizhou Province
1) India's government cloud infrastructure 2) Platform-as-a-service
3) Infocomm Development Authority 4) National University of S'pore
Japan
China
Philippines
Vietnam
Cambodia
Brunei
Malaysia
Singapore
Indonesia
Intensity of regional competition: High
> India, China and Japan have already attracted MNCs research activities due to their large
and mature markets for cloud solutions
> Growing pool of domestic companies offering cloud services e.g. China
Extremely high
competition
High competition
Moderate
competition
Low
competition
Technology profile: ICT – Big Data Analytics
The global big data market is expected to reach USD 17 bn by 2015
Homegrown
companies
Profile: Big Data Analytics (BDA)
Description
> BDA is the analysis of data sets so large and complex that it becomes
difficult to process using on-hand database management tools or
traditional data processing applications
Subcategories
> Big data infrastructure
> Capture & storage
> Data search & mining
Fit with
Cyberjaya
5
4
3
2
1
> Strong potential to build on established data
centre business in Cyberjaya
> Aligned with MDeC's objective to move up
value chain toward more KPO activities
> Many existing homegrown companies e.g.
Pulse Group, Web Bytes
Competitive
value
proposition
5
4
3
2
1
> Currently no designated BDA hub in M'sia
> Closest competitor is S'pore, which has
announced ambitions to become a regional
BDA hub – Appointed a Chief Data Scientist
> S'pore Economic Devt. Board is focusing on
attracting data-centric companies
Global big data market [USD bn],
CAGR: +39%
2010-15e
4.8
6.8
9.7
12.9
16.9
3.2
2010
2011
2012
2013
2014
2015
Servers
Oil, Gas &
Energy
Applicable
sectors
> BDA's applications cut across multiple NKEAs
> BDA is one of the pillars of "Digital Malaysia"
> Events like the annual Big Data Worldshow
help to increase M'sia's profile as a BDA hub
> Other strengths: Low electricity tariffs; existing
talent pool; presence of agencies (MDeC)
> Data sharing & transfer
> Data analytics & visualization
> IDC predicts that the global market for big data technology and services
will grow to USD 16.9 bn by 2015 (39% CAGR)
> Growth of individual segments of the market varies from 27% for servers
to 61% for storage
Size &
potential
Internal
capabilities
in Malaysia
5
4
3
2
1
Storage
Wholesale
& Retail
Networking
Comms
content &
infra
Software
Aviation &
avionics
Services
Chemicals
Waste mgt
Defence &
Security
Palm Oil &
Rubber
Healthcare
Healthcare
Biotechnology
Shipping
Electronics
&Electrical
Business
services
Consumer
products
Automotive
Public
transport
Source: Desktop research; IDC
Technology
potential &
readiness
5 Excellent
5 > Very mature – Broad commercial applications
exist
4 > already
Big part of value chain already present in the
form of data centre activity in Cyberjaya
3
2
1
4 Very good 3 Good
2 Fair
1 Poor
Regional competition: ICT – Big Data Analytics
Singapore and China have been actively attracting major players in
BDA to locate in their country by offering attractive incentives
 Big Data Analytics (BDA): Level of regional activity
Singapore
Thailand
>
> IBM decided to open its new
business innovation analytics
centre in BKK last year –
Serves as its SEA data hub
IDA1)
hired Chief Data
Scientist Prabir Sen to lead
its Data Sciences Group
> Events to bring together data
providers and specialists (e.g.
Data Innovation Challenge)
> IDA collaborates with
Institutes of Higher Learning
to provide academic
programs and facilitate
industry attachments
> Other strengths: educated
workforce, well developed
infrastructure and steady
growth in high-tech industry
South Korea
Taiwan
India
Myanmar
Laos
Thailand
China
India
> Market generates huge
amount of data due to size
> Market generates huge
amount of data due to size
> Leading local firms starting
to include BDA into
corporate strategy (e.g.
Alibaba)
> Nasscomm predicts BDA mkt
to be worth USD 1 bn by '15
> Guizhou aggressively
positioning itself as BDA hub
> Many local BDA start-ups are
sprouting e.g. Bizosys,
Crayon Data
> China's top 3 telco carriers
building big data facilities in
Guiyang, Guizhou's capital,
investing > RMB 15 bn
1) Infocomm Development Authority
Source: Desktop research
Japan
China
Philippines
Vietnam
Cambodia
Brunei
Malaysia
Singapore
Indonesia
Intensity of regional competition: Extremely high
> Singapore making aggressive play, while Thailand has cheaper cost base
> China and India have more massive big data potential – More attractive to co's
> Singapore and China (Guizhou) actively attracting big names using incentives
Extremely high
competition
High competition
Moderate
competition
Low
competition
B3.
Technology and competition
overview: Other technologies
Technology profile: Green technology
Green technology applies environmental science to conserve
the environment
Homegrown companies
Profile: Green technology
Description
Subcategories
> Application of environmental science to conserve the environment and
and to curb negative impacts of human involvement
> E.g. Biofuels – fuels produced from biomass conversion; Solar
photovoltaics - generating electrical power from solar radiation
> Biofuels
> Carbon capture
> Clean coal
Internal
capabilities
in Malaysia
> Hybrid and electric technologies
> Solar photovoltaics
> Hydropower / wind power
98
91
Solar
158
TOTAL
4
Fit with
Cyberjaya
3
2
248
Competitive
value
proposition
2023
398
Biotechnology
Shipping
Tourism
Aviation &
avionics
Public
transport
Consumer
products
Automotive
Waste mgt
4
3
2
> Competition exists from other parks with
green technology focus e.g. Technology Park
Malaysia, Senai Hi-Tech Park and Kulim Hi-Tech
Park
> Regional competition, e.g. HK Science & Tech
Park, Singapore's CleanTech One
1
5
Oil, Gas &
Energy
> Cyberjaya embarked on green tech agenda in
2010 in sync with NGTP
> Sepang Municipal Council offers tax incentives
for green buildings
> Aims to be a green township – However,
lacking in terms of implementation
1
Source: Clean Edge
Applicable
sectors
2
5
2013
146
3
5
Global clean energy projected size [USD bn], 2013 – 2023E
Biofuels
4
> Strong focus via National Green Technology
Policy (NGTP) in 2009
> Malaysian Green Technology Corporation
(under KeTTHA) as champion
> Green Technology Financing Scheme for co's
which are producers/users of green tech
1
> Clean Edge estimates the global clean-energy industry to be worth
USD248 bn in 2013, and will grow to USD398 bn in 2023
– Biofuel market to grow from USD98 bn in 2013 to USD146 bn by 2023
– Solar market to grow from USD91 bn in 2013 to USD158 bn by 2023
Size &
potential
5
Technology
potential &
readiness
4
3
> Wide breadth of commercial applications with
mix of established technologies (e.g. green
buildings) and emerging technologies areas
(e.g. biofuels; solar photovoltaics)
2
1
5
Excellent
4
Very good
3
Good
2
Fair
Source: Plunkett Research, Clean Edge, Inc
1
Poor
Regional competition: Green technology
Fast growing markets of China and India are investing aggressively
in green tech – Japan and South Korea among market leaders
 Green technology: Level of regional activity
China
Japan
> World's largest investor in clean
energy ($54 bn in 2013)
> World's fastest growing clean
energy market in 2013 - ranks
3rd in clean energy investment
after China and US ($28.6 bn in
2013)
> Govt provides low-interest loans,
funds industry-wide R&D and
provides subsidies for private
co's to purchase clean tech
> Biggest exporter of solar power
components and has one of the
biggest wind turbine manuf.
industries
South Korea
> Long history with solar – Sharp
has been developing solar tech
for >50 years
Japan
China
> Ongoing efforts to displace
nuclear energy has propelled
nation's clean energy sector
Taiwan
India
Myanmar
Laos
Thailand
South Korea
India
> Targets 11% renewable energy
share in final energy
consumption by 2030
> Investing in clean technology to
keep up with demand from a
growing population
> In 2013, USD600 m was invested
in the solar sector, and USD100
m in wind sector
> Within the G-20, the Indian
renewables market remained
the eighth largest for the second
year in a row
> Samsung is competing
aggressively in green tech,
growing its solar manufacturing
capacity from 150 MW now to 3
GW by 2015
> Ambitious clean energy target in
India’s 12th five-year plan
Philippines
Vietnam
Cambodia
Brunei
Malaysia
Singapore
Indonesia
> China continues to invest heavily in clean energy driven by government incentives
> Japan is investing significantly in clean energy to diversify from nuclear
> Cyberjaya may be able to position itself to compete in South East Asia
Extremely high
competition
High competition
Moderate
competition
Low
competition
Technology profile: Biotechnology
Biotech uses biological systems or their derivatives to produce
useful products and processes
Homegrown
companies
Profile: Biotechnology
Description
Subcategories
> Technological application that uses biological systems, organisms, or
derivatives thereof, to make or modify products and processes for
specific use, e.g. to combat diseases, reduce carbon footprint and feed
the world
> Genomics & genetic modif'n
> Bioinformatics
> Bioelectricity
5
Internal
capabilities
in Malaysia
> Biomass
> Tissue culture
> Bioengineering
4
3
2
> Strong emphasis via the National Biotech
Policy ('05) and Bioeconomy Transformation
Programme ('12) and dedicated agency,
BiotechCorp, to drive growth of biotech ind'y
> 225 BioNexus status companies; foreign co's
present incl. Arkema, Gevo and MetEX
1
5
4
Fit with
Cyberjaya
> Ernst & Young (EY) estimates that there are 598 listed companies
globally, with market capitalisation of USD477.3 billion as at 2012
> EY also estimates global R&D expenses of USD25.3 billion in 2012
3
2
> Not ICT related, save for bioinformatics,
(develop't of methods for storing, retrieving,
organizing and analyzing biological data)
> Lack of existing facilities for biotech (e.g.
biotech laboratories; hospitals)
> Not a focus area of study in universities
1
Total Capital Raised in North America and Europe [USD bn], 2002-2012
Size &
potential
5
40
Competitive
value
proposition
20
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
4
3
2
1
Source: EY
5
Applicable
sectors
Oil, Gas &
Energy
Healthcare
Automotiv
e
Palm Oil &
Rubber
Consumer
products
Waste mgt
Agriculture
Biotechnology
> Competition from Bio-Xcell, dedicated biotech
park in Iskandar and other parks with biotech
co's e.g. Techpark @ Enstek, Technology Park
M'sia & Kulim Hi-Tech Park
> Regional competition from Biopolis (S'pore)
and Hong Kong Science Park
Technology
potential &
readiness
4
3
2
> Developed technology area with breadth of
applications
> Sizeable domestic markets in place to use
outputs arising from the biotechnology
industry e.g. use of genetic R&D for yield
improvement within palm oil and rubber
1
5
Excellent
4
Very good
3
Good
2
Fair
Source: EY Biotechnology Industry Report 2013
1
Poor
Regional competition: Biotechnology
Japan and China are very competitive in biotechnology due to their
large markets – S'pore becoming an R&D hub for Southeast Asia
 Biotechnology: Level of regional activity
Japan
China
> Highly-skilled scientific
workforce, and leading local
biopharma companies (e.g.
Takeda, Eisai)
> Ministry of Science & Technology offers tax incentives
for R&D activities in
biotechnology
> Companies can conduct coresearch programs with
government agencies (e.g.
Ministry of Health and
Welfare)
> Significant research been
done in ZhangJiang Science
Park, Shanghai, with both
MNCs (e.g. Roche, Pfizer),
and development contractors
(e.g. Hutchison MediPharma,
Wuxi)
> World's #2 pharma market
for sales revenue, USD 111 bn
in 2011 (Source: IMS Health)
Thailand
> Talent availability, world-class
research institutes (e.g. NUS
Cancer Science Institute) and
testing facilities offered by
the surrounding hospitals
attracted several influential
R&D centers in Biopolis (e.g.
Abbott, GSK)
> Attractive tax incentives
offered by the BOI2) for
biotech-related activities
(R&D, manufacturing),
additional ones for locating in
Thailand Science Park3)
> BIOTEC (a research centre
under the Ministry of Science
&Tech), active in co-research
programs (e.g. with Novartis)
> High-quality hospitals,
offering testing facilities for
biotech co's
1) Economic Development Board, 2) Board of Investment, a government
agency under the ministry of Industry, 3) Located in Rangsit, north of Bangkok
Japan
China
Taiwan
India
Myanmar
> Attractive market due to its
very large population
Singapore
> Strong support from the gov't
(e.g. R&D incentives, public
research initiatives, funds
available from the EDB1))
South Korea
Laos
Thailand
Philippines
Vietnam
Cambodia
Brunei
Malaysia
Singapore
Indonesia
Intensity of regional competition: High
> Several leading companies have opened their Asian R&D labs in Singapore or in China,
mainly for their skilled workforce and significant incentives offered
> Thailand also making push in biotech, leveraging on its strong healthcare system
Extremely high
competition
High competition
Moderate
competition
Low
competition
Technology profile: Wearable technologies
The global wearables technology market is expected to grow
at 25% CAGR between 2012-2018
Homegrown
companies
Profile: Wearable technologies
Description
Subcategories
5
> Wearable technology (or "fashion electronics") refers to clothing &
accessories incorporating computer and advanced electronic
technologies
> Designs often incorporate practical functions and features, but may
also have a purely aesthetic agenda
Internal
capabilities
in Malaysia
> E-textiles & intelligent clothing > Digital accessories (e.g. smart
> Health-related devices (e.g.
watches, glasses, headgear)
activity trackers, heart monitors) > Embedded technologies
4
Fit with
Cyberjaya
3
2
Competitive
value
proposition
20
0
2013
2014
2015
2016
2017
2018
4
3
2
Applicable
sectors
Healthcare
Education
Consumer
products
Comms
content &
infra
Biotechnology
Source: IHS, CBN Insights
Defence &
Security
> No designated hub for wearable tech in M'sia
> Penang could be potential hub given Intel's
strong presence there
> Strong competition from other Asian cities (e.g.
Tianjin Economic park in China, or Singapore for
healthcare-oriented wearables)
1
Source: IHS, CBN Insights
Electronics
& Electrical
> Can potentially leverage on key IT companies
located in Cyberjaya (e.g. HP, Dell)
> Higher-value add activity within ICT, fully aligned
with MDeC's objectives
> May require experience in electronics
development, which Cyberjaya does not have
1
5
CAGR: +25.3%
2012
2
5
Global wearable technology market [USD bn], 2012-16e
40
3
1
> Juniper Research identified 2014 as key year for wearable tech in terms
of roll-outs and market traction – Predicts 70 m items to be sold by
2017
> ABI Research is even more bullish, expecting more than 485 m wearable
devices shipping by 2018
Size &
potential
4
> Wearables are mentioned as one of the hot
topics for development under Digital M'sia
roadmap – However, no specific blueprint
exists
> Lack of local companies investing into
wearable R&D
5
Technology
potential &
readiness
4
3
2
> Globally recognized as a very high potential
group of technologies
> Strong demand outlook especially for health &
fitness wearables (e.g. blood pressure
monitors, hearing aids)
1
5 Excellent
4 Very good
3 Good
2 Fair
1 Poor
Regional competition: Wearable technologies
Activity on wearables is currently concentrated in more advanced
countries in the northeast – Competition in SEA mainly from S'pore
 Wearable technology (WT): Level of regional activity
Singapore
Japan
> Poised to ride the wave with its
expertise in manufacturing,
electronics & software
application
> NTT Corp / Toray Industries will
soon release shirts that can
monitor people’s heart rate &
take electrocardiograms
> A*STAR's Exploit Technologies
(tech transfer arm) actively
nurtures devt of homegrown WT
prototypes
> Sony will push wristbands that
digitally record and data on daily
activities
> Host of global conferences e.g.
Startup Asia 2014
South Korea
Japan
China
> Smaller local start-ups also
entering into the fray e.g. MOFF1)
Taiwan
India
Myanmar
Laos
Thailand
Taiwan
South Korea
> Flagship brands like Acer, HTC
not major players – Taiwan's
focus will be in parts supply and
device assembly
> Samsung is a global WT leader
with offerings like Samsung Gear
– LG also entering the fray with
G-watch
> That said, Google actively
investing in / buying WT patents
from local tech co's e.g. Himax,
Hon Hai
> Local universities and institutes
carrying out cutting-edge
research e.g. body heat to
charge WT devices (Korean
Advanced Institute of Science
and Technology, or KAIST)
> Regular host of global WT events
e.g. Wearable Technology
Conference 2013
Philippines
Vietnam
Cambodia
Brunei
Malaysia
Singapore
Indonesia
> Research activity concentrated in more advanced countries in northeast Asia
> Taiwan set to serve as a key WT device assembly hub for the world
> Moderate competition within SEA itself, primarily from S'pore
1) Wristband toy gadget equipped with acceleration sensors and gyros, that detects
childrens’ arm movements and translates them as sounds
Extremely high
competition
High competition
Moderate
competition
Low
competition
Technology profile: Smart grid technology
The global smart grid market is expected to be worth
USD 100 bn by 2016
Homegrown companies
Profile: Smart grid technology
Description
Subcategories
> Modernized electrical grid that uses analog or digital ICT to gather and
act on information (e.g. info about behavior of suppliers and
consumers) in an automated way to improve efficiency, reliability and
economics of the production and distribution of electricity
> Integrated communications
> Sensing & measurement (e.g.
smart meters)
Internal
capabilities
in Malaysia
> Variable Frquency mode of ops
> Smart power generation (match
production with demand)
> …
33
25
2011
72
44
59
34
2012
45
57
2013
2014e
71
2015e
4
Fit with
Cyberjaya
3
2
100
Asia
81
Competitive
value
proposition
2016e
Oil & Gas
Defence &
Security
3
2
> Melaka earmarked to be a "showcase" city
for smart grid technology by 2030
> Existing regional competition to attract R&D
players (e.g. IES pilot project or EPGC2) in
Singapore, State Energy Smart Grid R&D
Center in Shanghai)
5
4
3
2
> Strong demand outlook due to global efforts
to reduce energy consumption
> Solutions already commercialized, used and
providing encouraging results (e.g : in
Massachusetts, Telegestore in Italy)
1
1) Advanced Meter Infrastructure, 2) Experimental Power Grid Centre
Source: Copenhagen Cleantech Cluster; MEC Intelligence
4
1
Technology
potential &
readiness
Electronics
&Electrical
> ICT is core technology behind smart grids
> Some companies with smart grid expertise
located in Cyberjaya (e.g. Shell, Fujitsu,
Mahindra Satyam) – But no R&D activities
conducted here
1
Source: Copenhagen Cleantech Cluster; MEC Intelligence
Applicable
sectors
2
5
Europe
+ America
CAGR: +25%
26
19
2010
3
5
Global sales revenue for smart grid [USD bn], 2010– 2016E
88
4
> Strong fit with government's aim to reduce
energy consumption and carbon footprint
> Existing national projects (e.g. Melaka Smart
City 2030) & local players conducting R&D (e.g.
TNB collaboration with Trilliant in Selangor,
GreenTech M'sia partnership w/ GE)
1
> Healthy growth due to improvements in ICT (e.g. smart sensors, intelligent
networks) and global willingness to reduce energy consumption
> Growing interest from VC funds and large MNCs ( e.g. Consert acquired by
Toshiba, Nest by Google, Cisco large investment in AMI 1))
Size &
potential
5
5 Excellent
4 Very good
3 Good
2 Fair
1 Poor
Regional competition: Smart grid technology
Countries in the region are embarking on smart grid pilots for nationwide roll-out – Cyberview can still serve as a "showcase" for M'sia
 Smart grid technologies: Level of regional activity
Singapore
Thailand
> EMA1) conducting Intelligent
Energy System pilots in new
public housing estates in
Punggol – Testing smart meters,
in-home displays, etc
> Energy agencies launched Smart
Grid roadmap in 2011 –
Investing USD 4bn over 16 yrs
> EMA also embarked on a microgrid test-bed on Pulau Ubin
using intermittent renewable
energy
> Smart Grid pilot in Mae Hong
Son began last year and
expected to be completed by
Dec 2015 – If successful, to be
rolled out nationwide
South Korea
> Chulalongkorn University also
launching a Smart Grid pilot
project in several provinces
Taiwan
India
Myanmar
Laos
Thailand
Philippines
Vietnam
Cambodia
China
India
> According to State Grid
Corporation, 2011-15 will be
dedicated to promotion of smart
grid construction
> In the midst of its R-APDRP2)
programme which directs USD
10 bn over coming yrs to grid
modernization – Tata
Consultancy Services playing a
lead role
> China spent more on smart grids
than the U.S. for the first time in
2013 – USD 4.3 bn invested
accounts for ~1/3 of world total
> China has installed ~250 m smart
meters nationwide
> Ministry of Power shortlisted 14
Smart Grid Pilot Projects to be
implemented by state-owned
distribution utilities
Japan
China
Brunei
Malaysia
Singapore
Indonesia
> Many countries in region already conducting state-led pilots for smart grids
> Cyberjaya can still serve as a test-bed for smart grid technology, to be rolled out on a
national level once proven successful
1) Energy Market Authority, 2) Restructured Accelerated Power Development and Reform
Programme
Extremely high
competition
High competition
Moderate
competition
Low
competition
C. POSITIONING STRATEGY
AND ACTION PLAN
Positioning strategy: ICT – Information security
Cyberjaya could position itself as a centre for regional
collaboration on cybersecurity in South East Asia
Information security: Positioning strategy for Cyberjaya
SWOT analysis for Cyberjaya
Strengths
Cyberview's role
Weaknesses
> Strongly supported by
MOSTI (e.g. CyberSecurity
M'sia created in '07)
> Existing programs to supply
talent (e.g. UTM, MMU)
> IMPACT is headquartered in
Cyberjaya; MOSTI also plans
to site its CyberSecurity HQ
here
> CIS (Centre for Information
Security) is housed in MMU
> No weaknesses identified at
present
> Strong demand growth
benefiting from growth of ecommerce, big data and the
increasing number of
personal devices
> Existing regional
competition – S'pore with
attractive incentives under
Infocomm Roadmap, or
Ochang Park (Korea)
Driver
Champion
Facilitator
> Specific agencies already set up (e.g. MDeC,
Cybersecurity Dept in MOSTI) – Cyberview to engage
agencies on CJ's focus areas & jointly develop plans
> Cyberview to serve as intermediary to facilitate
discussion among stakeholders, incl. companies
looking to set up, investors & property owners
Positioning strategies
CJ as centre for regional collaboration within SEA on cybersecurity,
A. Market
leveraging presence of IMPACT and Cybersecurity HQ
talent pool from universities like MMU that can provide ready,
B. Emphasize
high-skilled labor to information security companies relocating to CJ
financial incentives from govt agencies for information security
C. Stress
companies located in CJ (to be worked out with MDeC, MOSTI, MIDA etc)
Target companies
Opportunities
Threats
1 Cisco
4 FireEye
7
-
2 IBM
5 Check Point
8
-
3 Symantec
Barracuda
6 Networks
9
-
1) Positioning strategy slides for all other shortlisted technologies are included in the Appendix
10
-
Action plan: ICT – Information security
Related agencies such as MIMOS and IMPACT will need to be
engaged during the action plan implementation
Information security: Action plan (High-level)
2014
Strategic
Thrust
A
Initiating
contact with
companies
B
Establishing
regulatory
framework
C
Fostering
technology
platforms
Q3
2015
Q4
Q1
Q2
2016
Q3
Q4
Q1
Q2
2017
Q3
Q4
Q1
Q2
Q3
Q4
Initiatives
Relevant
agencies to be
consulted
before
approaching
companies
First contact with top 5 companies
(Round 1)
> Companies to be contacted: Cisco, IBM,
Symantec, FireEye, Check Point
> To align with MDeC, MIDA if there are
ongoing discussions with target companies
Trigger discussions & align
with relevant agencies
> Initiate talks with MIDA,
InvestKL
> Meet with MOSTI, KKMM,
MDeC to discuss possibility of
coming up with customized
fiscal incentives
Talk to MIMOS
Seek Cabinet approval for
proposed plans
> Sector-specific incentives may
require approval from Cabinet
> Approval process expected to
take ~9-12 months
Define strategic R&D plan
> Understand MIMOS' > Set quantitative long-term program of
existing platforms
public investment for R&D required
Talk to IMPACT
Develop talent development
programs
> Stocktake to clarify > Discuss with Education Ministry & relevant
activities to leverage
universities to develop suitable programs
1) Positioning strategy slides for all other shortlisted technologies are included in the Appendix
Follow-up with
Round 1 co's
Approach 2nd
priority companies
(Round 2)
> 2nd round of
> (If required)
meetings where
> To be "activated" if
incentive packages
negative replies
will be presented
received from 1st
and discussed
tier companies
Reassess & update shortlist of target
technology areas & companies
> To factor in new emerging areas and
companies
> Roland Berger can assist in steering this
process
Assemble and present incentive package to attract target companies
> E.g. tax benefits, research grants, discount on office rentals / land sales, training grants
Execute R&D and talent development plans
> MOSTI & MIDA to serve as lead agencies
> Establish collaboration with MIMOS and other relevant agencies (e.g. Cybersecurity M'sia)
or industry players to make available existing technology platforms in Cyberjaya
Positioning strategy: ICT – Creative content technologies
Cyberview should facilitate the development of the creative content
industry & develop CJ as a national hub for creative industries
Creative content technologies: Positioning strategy for Cyberjaya
Strengths
Cyberview's role
> Strong national support:
FINAS1), which offers
financial incentives (FIMI2)),
CMC3) under MSC Malaysia
– one of MDeC's main focus
areas
> Presence in Cyberjaya of
universities specialized in
this area (MMU, Limkokwing
Uni.)
> Established local creative
co's in Cyberjaya (e.g. KRU
Studios, Giggle Garage)
> Besides animation studios
and mobile apps developers,
lack of a strong industry
base (e.g. gaming industry,
filmed entertainment)
> Shortfall of talent in 2013
(based on MDeC statistics)
> Strong demand outlook for
all the sub-segments:
augmented reality, gaming
industry, etc.
> Increasing focus on
developing content adapted
to specific geographic areas
– most global players are not
very present in SEA
> Singapore made a strong
push in creative content
and already attracted
leading players (e.g.
LucasFilm, EA)
> Competition from
Northern Asian markets
due to their size & skilled
workforce (e.g. Japan for
mobile apps, India for
films)
Opportunities
> The ecosystem to develop creative content already
exists in Malaysia (gov't agencies providing incentives,
universities, local companies) – Cyberview should
encourage closer collaboration
> Cyberview should be able to sell and advocate this
creative ecosystem to attract foreign companies
Weaknesses
Driver
Champion
Facilitator
the main players of the industry (e.g. FINAS) in Cyberjaya, market it as
A. Bring
the national hub for creative people where synergies are created
Threats
talent pool from universities like MMU that can provide a
B. Emphasize
creative workforce with the right mindset for companies in Cyberjaya
financial incentives from govt agencies for creative multimedia
C. Stress
companies located in CJ (to be worked out with MDeC, FINAS, etc)
Target companies
1 Dreamworks
4 Electronic Arts
7
(Back-up) Frog Design
2 Blizzard
5 Studio Ghibli
8
-
9
-
3 Disney
6
(Back-up) Moving
Picture)
10
1) National Film Development Corporation Malaysia, agency and authority entrusted with the responsibility of developing film industry in Malaysia, 2) Film in Malaysia Incentive,
3) Creative Multimedia Cluster
-
Action plan: ICT – Creative content technologies
A closer collaboration with MDeC should be the first step to
encourage the development of the creative content industry in M'sia
Creative content technologies: Action plan (High-level)
2014
Strategic
Thrust
A
Initiating
contact with
companies
B
Establishing
regulatory
framework
C
Fostering
local content
development
Q3
2015
Q4
Q1
Q2
2016
Q3
Q4
Q1
Q2
2017
Q3
Q4
Q1
Q2
Q3
Q4
Initiatives
Relevant
agencies to be
consulted
before
approaching
companies
(Round 1)
> Companies to be contacted: Dreamworks,
Blizzard, Disney, Electronic Arts, Studio
Ghibli
InvestKL
fiscal incentives
Talk to MDeC
proposed plans
take ~9-12 months
> Set quantitative long-term program of
> Understand current
development
program
> Determine if new
agencies need to be programs
> Discuss with Education Ministry & relevant
created (following
the model of FINAS1))
Follow-up with
Round 1 co's
Approach 2nd
priority companies
(Round 2)
> 2nd round of
> (If required)
meetings where
incentive packages
negative replies
will be presented
received from 1st
and discussed
tier companies
companies
process
> MDeC to serve as lead agency
> Establish collaboration with MAGIC and relevant agencies like MIMOS or industry players to
make technology platforms available, for entrepreneurs to easily develop and market their
ideas
1) National Film Development Corporation Malaysia, agency and authority entrusted with the responsibility of developing film industry in Malaysia
Positioning strategy: ICT – Mobile internet
Cyberjaya can be positioned as a hub for the development of
mobile software and applications, leveraging on the talent pool
Mobile Internet: Positioning strategy for Cyberjaya
Strengths
Cyberview's role
> In line with the National ICT
Roadmap focus area of
"ubiquitous connectivity"
> Supported under the Digital
Malaysia initiative
> Complements the active
promotion by MIMOS of the
"Internet of Things" concept
> Existing courses on software
engineering offered in
several universities (e.g.
UTM, UM)
> Hardware aspect, i.e.
development of mobile
devices is not within
Cyberjaya's strengths (e.g.
high cost of investment,
need for manufacturing
facilities and skill sets in
hardware development)
> Relatively low capital
requirement for
development of mobile
software and applications
creates opportunities for
start-ups
> Increasing use of mobile
internet leads to continued
demand for new
applications and software
> Existing regional
competition in mobile
hardware development
from South Korea and
China
> IDA1) in S'pore is driving
cross-sectoral application
of innovative mobile
services (e.g. mGov
initiative drives the
delivery of m-govt services)
Opportunities
> Specific agencies are already in place (e.g. MDeC,
MIMOS) – Cyberview to engage agencies on CJ's focus
areas & jointly develop plans
discussion among stakeholders, incl. companies
looking to set up, investors & property owners
Weaknesses
Driver
Champion
Facilitator
CJ as hub for development of mobile software and applications,
A. Market
leveraging existing technology platforms by MIMOS
Threats
with universities, e.g. MMU & Limkokwing to highlight talent
B. Collaborate
pool in software engineering in approaching mobile software companies
financial incentives from govt agencies for mobile internet companies
C. Stress
located in CJ (to be worked out with MDeC, MOSTI, MIDA etc)
Target companies
1 Google
4 Apple
7
-
2 Facebook
5 Samsung
8
-
9
-
3 Twitter
6
(Backup) King Digital
Entertainm't
10
-
Action plan: ICT – Mobile internet
Strong collaboration with relevant agencies required to produce
compelling positioning to attract target mobile internet companies
Mobile Internet: Action plan (High-level)
2014
Strategic
Thrust
A
Initiating
contact with
companies
B
Establishing
regulatory
framework
C
Fostering
technology
platforms
Q3
2015
Q4
Q1
Q2
2016
Q3
Q4
Q1
Q2
2017
Q3
Q4
Q1
Q2
Q3
Q4
Initiatives
Relevant
agencies to be
consulted
before
approaching
companies
(Round 1)
> Companies to be contacted: Google,
Facebook, Twitter, Apple and Samsung
InvestKL
fiscal incentives
Talk to MIMOS
proposed plans
take ~9-12 months
> Understand MIMOS' > Set quantitative long-term program of
existing platforms
Talk to
universities
> Identify platforms
within unis e.g.
MMU
programs
> Discuss with Education Ministry & relevant
Follow-up with
Round 1 co's
Approach 2nd
priority companies
(Round 2)
> 2nd round of
> (If required)
meetings where
incentive packages
negative replies
will be presented
received from 1st
and discussed
tier companies
companies
process
> MOSTI & MIDA to serve as lead agencies
> Establish collaboration with MIMOS and other relevant agencies or industry players to make
available existing technology platforms in Cyberjaya
Positioning strategy: ICT – Cloud computing
Cyberjaya has a strong value proposition to attract companies in
cloud computing given its position as a data center hub in Malaysia
Cloud Computing: Positioning strategy for Cyberjaya
Strengths
Cyberview's role
> One of the focus areas of
the National ICT Roadmap
> In line with Digital
Malaysia's Shared Cloud
Enterprise Services project
> Ability to leverage on the
MSC Cloud Computing
Initiative
> Numerous data centers
already located in Cyberjaya
demonstrates availability of
experienced talent
> No weaknesses identified at
present
> Increasing adoption of cloud
computing solutions by
enterprises due to the
benefits of reduced capital
outlay required
> High degree of regional
competition including
Singapore (IDA offers
financial incentives for
companies adopting cloud
solutions), India (Bangalore
Is hub for innovative cloud
solutions) and China
(government provides
support for cloud via
collaborations)
Opportunities
> Specific agencies are already in place (e.g. MDeC, MIMOS)
– Cyberview to engage agencies on CJ's focus areas &
jointly develop plans
> Cyberview to serve as intermediary to facilitate discussion
among stakeholders, incl. companies looking to set up,
investors & property owners
Weaknesses
Driver
Champion
Facilitator
CJ as cloud computing hub, given numerous data centers located in CJ
A. Market
and lower-cost base compared to Singapore
Threats
talent pool in cloud computing stemming from universities e.g. MMU
B. Highlight
and UTM, as well as experienced talent working in CJ
incentives & programmes for co's involved in cloud located in CJ,
C. Emphasise
building on the MSC M'sia Cloud Computing Initiative
Target companies
1 Amazon
4
Google
7
-
2 Microsoft
5
RackSpace
8
-
3 Salesforce
6
-
9
-
10
-
Action plan: ICT – Cloud computing
Cyberjaya should capitalize on cloud computing programs by other
agencies e.g. MDeC & MIMOS and collaborate to attract companies
Cloud Computing: Action plan (High-level)
2014
Strategic
Thrust
A
Initiating
contact with
companies
B
Establishing
regulatory
framework
C
Fostering
technology
platforms
Q3
2015
Q4
Q1
Q2
2016
Q3
Q4
Q1
Q2
2017
Q3
Q4
Q1
Q2
Q3
Q4
Initiatives
Relevant
agencies to be
consulted
before
approaching
companies
(Round 1)
InvestKL
fiscal incentives
> Understand existing
cloud platforms
Approach 2nd
priority companies
(Round 2)
> Companies to be contacted: Amazon,
> 2nd round of
> (If required)
Microsoft, Salesforce, Google & Rackspace
meetings where
> Identify needs of companies wishing to set
incentive packages
negative replies
up cloud computing centres in CJ and offer
will be presented
received from 1st
tailored solutions (e.g. customized buildings) and discussed
tier companies
Talk to MIMOS
Follow-up with
Round 1 co's
proposed plans
take ~9-12 months
Engage with MDeC
companies
process
Execute cloud technology development programmes and talent development
plans
> Build on the current MSC Cloud Technology
Initiative to develop Cyberjaya-specific
> MDeC to serve as lead agency
progs2)
> Establish collaboration with MIMOS and other relevant agencies or industry players (e..g.
1)
Engage MSC Cloud Tech Partners
Develop talent progs
the MSC M'sia Cloud Technology Partners) to make available existing technology platforms
in Cyberjaya
> Identify cloud platforms available
> Engage MoE & unis to
develop suitable progs
1) 6 partners identified by MDeC: Microsoft, Maxis, Exabytes, Skali, TM and Emerge; 2) E.g. Incubation and training programmes to encourage cloud software
development by independent software vendors located in Cyberjaya
Positioning strategy: ICT – Big data analytics
Cyberview has a clear value proposition to attract BDA players - it
should work on incentives to accelerate big data adoption in M'sia
Big data analytics: Positioning strategy for Cyberjaya
Strengths
> Can build on the established
data centre activity in CJ (data
access, industry players)
> Pool of home-grown innovative
companies in Cyberjaya (e.g.
Pulse Group, Predictry)
> Strong support from national
agencies (e.g. MDeC, Ministry
of Communication and
Multimedia, Mampu1))
> Strong demand growth due to
increasing amount of data
generated and new applications
(e.g. marketing, branding)
> Programs being developed to
tackle the workforce shortage
issue (e.g. Pulsate plans to set
up a data academy in Cyberjaya
to train 3,000 specialists by
2020)
Opportunities
Cyberview's role
> Specific agencies set up (e.g. MDeC, MIMOS) – Cyberview
to engage these agencies & see how they can help to
increase CJ's attractiveness
> Cyberview should work on plans with relevant agencies to
encourage the widespread adoption of BDA, first for co's
in CJ and then on a national scale
Weaknesses
Driver
> Under-supply of big data
scientists currently in M'sia
Champion
Facilitator
> Strong competition in Asia,
both from India and China due
to huge amount of data
generated by their markets,
and from S'pore which is
heavily investing in staff
training and appointed a chief
data scientist
Threats
A.
Market Cyberjaya as the most suitable hub for BDA in Malaysia given the
prevalence of data centres
B.
Leverage on the existing network of SMEs and innovative start-ups to position
CJ as a national hub for BDA innovation and development
C.
Stress financial incentives from govt agencies towards BDA research activities &
technology adoption (to be worked out with MDeC, MOSTI, etc.)
Target companies
1 Oracle
4 EMC
7
-
2 Hortonworks
5 Teradata
8
-
3 Cloudera
6 -
9
-
10
-
1) Malaysian Administrative Modernization and Management Planning Unit, which announced the creation of a product development and commercialization fund in 2015 to support
innovative and market-driven BDA products and services
Action plan: ICT – Big data analytics
Developing BDA in Malaysia requires structural changes in the
education system output, this can be driven by Cyberview & MDeC
Big data analytics (BDA): Action plan (High-level)
2014
Strategic
Thrust
A
Initiating
contact with
companies
B
Establishing
regulatory
framework
C
Creating the
technology
ecosystem
Q3
2015
Q4
Q1
Q2
2016
Q3
Q4
Q1
Q2
2017
Q3
Q4
Q1
Q2
Q3
Q4
Initiatives
Relevant
agencies to be
consulted
before
approaching
companies
(Round 1)
> Companies to be contacted: Oracle,
Hortonworks, Cloudera, EMC, Teradata
Talk to relevant agencies
> Discuss with MDeC, MCMC about
possible customized incentives
proposed plans
> Understand & review BDA adop- take ~9-12 months
tion program under "354
Roadmap"
Talk to MDeC & industry
Talk to MIMOS, MDeC &
industry
Follow-up with
Round 1 co's
Contact other
BDA co's in CJ1)
Approach 2nd
priority
companies
(Round 2)
> (If required)
negative replies
> Present & discuss received from 1st
incentives packages tier companies
companies
process
> E.g. tax benefits for companies developing BDA solutions, training grants, rebates for
companies adopting BDA tools
> Evaluate industry needs for
workforce & technology
Define skills training requirements
programs
> Assess MIMOS existing platforms > Engage education and industry training
> Assess MDeC's talent devlpt plans players to develop relevant programs
> Set up big data academies (e.g. Pulsate's training centre) and
university programs
> MDeC to serve as lead agencies
> Establish collaboration with MIMOS and/or other relevant
agencies/ industry players to make available existing
technology platforms in Cyberjaya
1) This applies to companies present in Cyberjaya, involved in BDA R&D activities but elsewhere, and not part of the 1st or 2nd priority companies (e.g. IBM)
Positioning strategy: Green technology
Cyberjaya can position itself as a test-bed for new green technology
projects; also stands to benefit from government support
Green technology: Positioning strategy for Cyberjaya
Strengths
Cyberview's role
Weaknesses
> CJ accorded pioneer green
city status in 2010 in sync
with MGTP1) (sets
environmental targets, such
as reducing the peak
temperature)
> Strong national support
(e.g. MGTC2), tax incentives
for co's in green areas such
as waste recycling, creation
of the GTFS3)
> Skilled workforce available
> Some sub-segments of
green technology do not
directly fit with CJ (e.g.
green manufacturing)
> Limited industry base
currently in CJ
> Low competition in SEA –
opportunity to become the
regional leader in this area
> Growing demand due to
global awareness – may
increase further with the UN
Climate Change Conf. in
Paris in 2015
> Fast-growing areas of
development, such as
energy efficiency
> Domestic competition
exists from other parks in
Malaysia, such as
Technology Park Malaysia
or Kulim Hi-Tech Park
> Established competition in
Asia in specific subsegments (e.g. wind
turbine & solar panels in
China, bio-gas in India)
Opportunities
Driver
Champion
Facilitator
> Cyberview needs to engage specific agencies (e.g.
KeTTHA4)) and relevant industry associations (e.g.
MPIA5)) to foster collaboration and develop its own
competitive edge
> Cyberview should focus on offering testing facilities for
green tech companies (e.g. renewable energies)
CJ as a leading hub in SEA in different green niche areas (e.g. waste
A. Market
recycling, energy efficient buildings, and electric transportation)
Threats
the talents and the land availability in CJ, as well as the possibility
B. Highlight
of using the town as a test-bed for new green technologies
financial incentives from govt agencies towards green technology
C. Stress
companies and their adoption (to be worked out with KeTTHA )
Target companies
1 Veolia
4 Siemens
7 Solazyme
2 Honeywell
5 Yingli
8 LanzaTech
3 General Electric
6 ABB
9 KiOR
1) Malaysian Green Technology Policy, created in 2009; 2) Malaysian Green Technology Corporation; 3) Green Technology Financing Scheme, provides soft loans to
companies that supply and utilize green tech in their businesses; 4) Ministry of Energy, Green Technology and Water; 5) Malaysian Photovoltaic Industry Association
10 First Solar
Action plan: Green technology
To do so, the first step should be to understand industry
needs, both in terms of policy incentives and infrastructure
Green technology: Action plan (High-level)
2014
Strategic
Thrust
A
Initiating
contact with
companies
B
Establishing
regulatory
framework
C
Fostering
technology
platforms
Q3
2015
Q4
Q1
Q2
2016
Q3
Q4
Q1
Q2
2017
Q3
Q4
Q1
Q2
Q3
Q4
Initiatives
Relevant
agencies to be
consulted
before
approaching
companies
Contact top 10 companies & follow-up discussions
Reassess & update shortlist of
target technology areas &
companies
• Companies to be contacted: Veolia, Honeywell, GE,
Yingli Siemens, ABB, Solazyme, LanzaTech, KiOR, First
Solar
Contact other relevant co's
or public services1)
Talk to relevant development agencies
• To align with KeTTHA & MIDA if there are ongoing
discussions with target companies
• Discuss with MOSTI & KeTTHA
about customized incentives
Talk to KeTTHA & industry
• Understand MGTP2) programs &
industry players needs to increase
adoption of green technology
Talk to MGTC3) & industry
proposed plans
• Sector-specific incentives may
• Approval process expected to
take ~9-12 months
• Discuss possiblity of using CJ as
a test-bed or national showcase
• To factor in new emerging areas and
companies
• Roland Berger can assist in steering this
process
• E.g. tax benefits for companies involved in green technology & for companies developing
environment-friendly processes
Define public development plan
• Evaluate industry needs for
• Set quantitative long-term program of public
public R&D programs, workforce R&D investment and talent development
•
and testing facilities in Cyberjaya
•
Define infrastructure investment plan
• Assess KeTTHA's existing
technology development plans
• Engage with relevant partners to set up
•
infrastructure and test-bed facilities in CJ
Execute infrastructure & public development plans
KeTTHA to serve as lead agency
Set up test-bed facilities in Cyberjaya, follow-up with university
talent programs
Establish collaboration with relevant agencies/ industry players to
make available their current development projects in Cyberjaya
1) This applies to government services agencies, that may be interested in testing green technologies or in collaborating with companies in Cyberjaya, such as the Land
Transport Authority or Tenega Nasional; 2) Malaysian Green Technology Policy; 3) Malaysian Green Technology Corporation
Positioning strategy: Biotechnology
Cyberjaya must carefully carve out a competitive niche and
position itself as a development hub for bioinformatics
Biotechnology: Positioning strategy for Cyberjaya
Strengths
Cyberview's role
Weaknesses
> Strong national support
with the National
Biotechnology Policy (NBP)
and Bioeconomy
Transformation Prog. (BTP)
> Ability to leverage and work
with BiotechCorp, the
national biotech agency to
drive forward the
development plans
> Bioinformatics development
is synergistic with the plans
to develop big data in CJ
> No previous experience in
biotech and would need to
establish its niche in the
industry
> Potential to capitalize on ICT
expertise in Cyberjaya to
develop the bioinformatics
market, and to position
Cyberjaya as a
bioinformatics hub
> Domestic competition
from other parks e.g.
> Strong regional
competition from countries
such as Japan, China and
Singapore
Opportunities
Driver
Champion
Facilitator
> BiotechCorp is the dedicated biotechnology agency –
Cyberview to engage BiotechCorp on CJ's focus areas &
jointly develop plans
discussion among stakeholders, incl. companies looking
to set up, investors & property owners
CJ as a biotech hub, with focus on bioinformatics to leverage on the
A. Market
ICT capabilities of Cyberjaya
Threats
potential to merge talents in biotech and growing expertise in data
B. Highlight
analytics, which can pave the way for a bioinformatics hub
incentives for BioNexus co's and financial incentives for biotech
C. Emphasise
co's specialising in bioinformatics and located in CJ (to be worked out with
BiotechCorp etc)
Target companies
1 Celgene
4 United Thera.
7 Regeneron
2 Biogen
5 Life Tech.
8 Alexion
3 Amgen
6 Vertex Pharma.
9 Genzyme
10 Genentech
Action plan: Biotechnology
Efforts must be focused on the right framework and
collaborations to attract companies to develop bioinformatics
R&D in Cyberjaya
Biotechnology: Action plan (High-level)
2014
Strategic
Thrust
A
Initiating
contact with
companies
B
Establishing
regulatory
framework
C
Creating the
technology
ecosystem
Q3
2015
Q4
Q1
Q2
2016
Q3
Q4
Q1
Q2
2017
Q3
Q4
Q1
Q2
Q3
Q4
Initiatives
Relevant
agencies to be
consulted
before
approaching
companies
First contact with top 10 companies (Round 1)
> Companies to be contacted: Celgene,
BioGen, AmGen, United Therapeutics, Life
Technologies, Vertex Pharma, Regeneron,
Alexion, Genzyme and Genentech
> Align with ongoing efforts of BiotechCorp
proposed plans
> Initiate talks with MIDA, InvestKL > Sector-specific incentives may
> Meet with BiotechCorp on
existing BioNexus incentives and > Approval process expected to
potential new incentives to
take ~9-12 months
promote bioinformatics in CJ
Engage BiotechCorp
biotech platforms
public investment for R&D in bioinformatics
Engage industry players
Develop talent programs
> Both biotech and data analytics > Engage relevant universities to
cos to identify cross-synergies
develop bioinformatics programs
potential
1) This applies to biotech companies located in other parts of Malaysia
Engage biotech
co's in M'sia1)
> Invite them to set
up bioinfo centers
in CJ
Approach 2nd
priority companies
(Round 2)
> (If required)
negative replies
received from 1st
tier companies
companies
process
> E.g. tax benefits, training grants, rebates, assistance to fund R&D, etc
Execute R&D development programmes and talent development plans
> BiotechCorp to serve as lead agency
> Establish collaboration with BiotechCorp and industry players to make available existing
biotech platforms in Cyberjaya
Positioning strategy: Wearable technologies
Cyberjaya can position itself as a hub for wearable technology given
the synergies with its ICT capabilities; Cyberview to act as champion
Wearable Technology (WT): Positioning strategy for Cyberjaya
Strengths
Cyberview's role
Weaknesses
> Ability to leverage CJ's ICT
experience and expertise
> In line with Digital M'sia's
aim of developing a digital
economy
> Complementary with
MIMOS efforts in the
development of "Internet of
Things"
> Universities currently
provide talent supply, e.g.
USM, UM, UTM
> Hardware aspect is less
aligned with CJ's areas of
strength - i.e. highly
competitive with low-cost
producers from China and
Taiwan; requires higher
capital investment
> Potential to leverage
national advances in sensor
and wireless technologies to
develop technologies for
wearables
> Strong national capabilities
in semiconductor and
microelectronic
manufacturing in Penang
provide easy access to
components
> Regional competition from
more advanced countries
such as Japan, Taiwan and
South Korea who are at the
forefront of WT
Opportunities
Driver
Champion
Facilitator
> Relevant agencies exist, e.g. MDeC, MIMOS, but the
technology cuts across multiple disciplines, incl sensor
technology, wireless technology, software
development, microelectronics etc
> Cyberview to serve as active advocate to promote WT
among relevant agencies
CJ as a hub for development of WT, capitalizing on ICT expertise and
A. Market
software development know-how
availability of talent across disciplines of ICT, sensor and wireless
B. Highlight
tech, microelectronics and E&E from various local universities incl. USM,
C.
UTM and UM
Emphasise financial incentives for co's involved in wearable technology
located in CJ (to be worked out with MDeC, MOSTI, MIDA etc)
Target companies
Threats
1 Samsung Elec.
4 Google
7 Jawbone
2 Adidas
5 Nike
8 Sony
3 Garmin
6 Fitbit
9 Eurotech
10 Pebble Tech
Action plan: Wearable technologies
Cyberview should collaborate with other agencies to highlight
complementary technology strengths in attracting companies to CJ
Wearable Technology (WT): Action plan (High-level)
2014
Strategic
Thrust
A
Initiating
contact with
companies
B
Establishing
regulatory
framework
C
Creating the
technology
ecosystem
Q3
2015
Q4
Q1
Q2
2016
Q3
Q4
Q1
Q2
2017
Q3
Q4
Q1
Q2
Q3
Q4
Initiatives
Relevant
agencies to be
consulted
before
approaching
companies
First contact with top 10 companies (Round 1)
> Companies to be contacted: Samsung Electronics, Adidas, Garmin,
Google, Nike, Fitbit, Jawbone, Sony, Eurotech and Pebble
Technology
> Align with ongoing efforts of MIDA, InvestKL
proposed plans
> Initiate talks with MIDA, InvestKL > Sector-specific incentives may
> Meet with MDeC, MOSTI on
potential incentives to promote > Approval process expected to
WT in CJ
take ~9-12 months
Engage MIMOS
platforms for WT1)
> Identify players offering
complementary tech, e.g. sensor &
wireless tech
> 2nd round of
meetings where
incentive packages
will be presented
and discussed
companies
process
> E.g. tax benefits, training grants, rebates, assistance to fund R&D, etc
Execute R&D development programmes and talent development plans
Engage relevant industry players
Follow-up with
Round 1 co's
> Cyberview to serve as active advocate or champion for WT
> Establish collaboration with MIMOS and industry players to make available existing
platforms relating to WT, e.g. sensor & wireless technologies as well as microelectronics in
> Engage unis to develop WT Cyberjaya
programs and training
Develop talent progs
1) Including numerous sensor and wireless platforms already developed and owned by MIMOS
Positioning strategy: Smart grid technology
The interest for smart grids in Malaysia is fast-growing – Cyberjaya
should position itself as the hub which fosters R&D collaboration
Smart grid technology: Positioning strategy for Cyberjaya
Strengths
Cyberview's role
Weaknesses
> Fit easily with CJ given the
use of ICT as a core
technology
> Consistent with
government's aim to reduce
energy consumption – can
benefit from incentives
under MGTP1)
> Growing industry interest
(e.g. partnerships set up
between MGTC2), Tenaga &
co's like GE or Trilliant, or
Silver Springs)
> Currently no R&D activity
conducted on smart grids in
Cyberjaya
> Pool of companies in
Cyberjaya active in smart
grid activities elsewhere
(e.g. Fujitsu, Mahindra)
> Increasing number of realworld project in Malaysia
(e.g. Melaka, Mukah Smart
City)
> Possibility to see
competition emerging
from other Malaysian tech
parks focusing on ICT &
green technology, such as
Opportunities
Driver
Champion
Facilitator
> Engage government agencies (e.g. SEDA3), KeTTHA4))
and relevant industry players (mainly Tenaga Nasional)
to develop more projects in M'sia
> Cyberview should offer testing grid facilities, and focus
on attracting global players to foster their
collaboration with the relevant M'sian companies a
Cyberjaya as the most appropriate hub for smart grids, given the
A. Market
prominent ICT aspect and the green city status of Cyberjaya
Threats
up testing facilities for smart grid technology, as well as the possibility
B. Offer
for foreign co's to collaborate with local players and government agencies
C.
for commercial roll-out
Stress financial incentives from govt agencies towards real-world smart
grids projects (to be worked out with SEDA3) , MOSTI or KeTTHA)
Target companies
1 Itron
4 IBM
7 ABB
2 Echelon
5 S&C
8 Siemens
3 Silver Springs
6 Schneider
9 General Electric
1) Malaysian Green Technology Policy 2) Malaysian Green Technology Corporation 3) Sustainable Energy Development Authority
10
Tendril
Networks
Action plan: Smart grid technology
Cyberjaya should make sure suitable incentives are in place, and
provide a conducive environment for target smart grid companies
Smart grid technology: Action plan (High-level)
2014
Strategic
Thrust
A
Initiating
contact with
companies
B
Establishing
regulatory
framework
C
Fostering
technology
platforms
Q3
2015
Q4
Q1
Q2
2016
Q3
Q4
Q1
Q2
2017
Q3
Q4
Q1
Q2
Q3
Q4
Initiatives
Contact top 10 companies & discussions follow-up
Relevant
agencies to be
consulted
before
approaching
companies
• Companies to be contacted: Itron, Echelon, Silver
Springs, IBM, S&C, Schneider, ABB, Siemens, GE, Tendril
Networks
Contact other relevant co's
in CJ1) & Tenaga N.
Talk to relevant development agencies
• To align with KeTTHA, MIDA if there are ongoing
discussions with target companies
• Discuss with SEDA, KeTTHA
about possible customized
incentives 2)
Talk to MGTC & Tenaga N.
• Understand MGTP3) programs
• Engage Tenaga Nasional to
under-stand future development
plans
Talk to agencies & industry
proposed plans
• Sector-specific incentives may
• Approval process expected to
take ~9-12 months
• Present & discuss incentive
packages
• To factor in new emerging areas and
companies
• Roland Berger can assist in steering this
process
• E.g. tax benefits for municipalities implementing smart grids projects
Define public development plan
• Evaluate industry needs for
• Set quantitative long-term program of public
•
public R&D programs, workforce R&D investment and talent development
•
and testing facilities in Cyberjaya
Define infrastructure investment plan
• Assess SEDA/MDeC's existing
•
development plans and MIMOS
• Engage with relevant partners to set up
technology platforms
infrastructure and test-bed facilities in CJ
Execute infrastructure & public development plans
SEDA, MDeC, KeTTHA to serve as lead agencies
Set up test-bed facilities in Cyberjaya, follow-up with university talent
programs
Establish collaboration with MIMOS and/or relevant agencies/ industry
players to make available their current development projects in Cyberjaya
1) This applies to companies present in Cyberjaya, involved in smart grid activities but elsewhere, and not part of the top 10 priority companies (e.g. Mahindra, Huawei)
2) Malaysian Green Technology Corporation 3) Malaysian Green Technology Policy 4) Sustainable Energy Development Authority
D. IMPACT
The Global Technology Hub implementation is expected to
deliver GNI impact of RM 2.4 bn and 6,600 new jobs between
2014-2020
Conclusions
5 focus technology areas …
1
ICT technologies
1a
Information security
1b
Creative content tech
1c
Mobile internet
1d
Cloud computing
1e
Big data analytics
2
Green technology
3
Biotechnology
4
5
Smart grid technology
Defined action plan in place …
1 Initiate contact with companies
GNI and jobs boost
Total GNI impact 1), 2014-2020
RM 2.4
billion
2 Establish regulatory framework
Total jobs created 1), 2014-2020
6,600
jobs
3 Foster technology platforms
Related industry sectors will also be positively impacted
through this catalytic initiative
Impact of GTH to related industry sectors
Non-exhaustive
Manufacturing
Software
development
Engineering
services
ICT services
Logistics
Shared service
outsourcing
Information
security
Creative
content
Animation
production
Chemicals
Media and content
development
Mobile
internet
E-Commerce
Smart grid
Energy efficiency
Benefits to related industry
sectors
Wearables
Biotechnology
Business analytics
Cloud
computing
Global
Technology
Hub
Big data
analytics
Green
technology
Healthcare
Agriculture
Electrical and
electronics
Property
development
Data centers
Construction
Pharmaceuticals
Technology sectors under Global Technology Hub
Power
> Industry ecosystem:
Nurtures an ecosystem of
companies in related
business sectors across the
value chain, lowering the
overall cost of doing
business
> Catalytic investment:
Anchor investments in
core industry sectors will
serve as a catalyst to the
development of new
business opportunities and
industry areas
> Technology transfer:
Investments of foreign
investments will benefit
local workforce and
enterprises through direct
and indirect transfer of
knowledge and expertise
Related industry sectors
E. APPENDIX
E1.
Benchmarking: Technology parks
Benchmarking – Technology parks: Research Triangle Park, US
The Research Triangle Park is the world's largest universityrelated park, mainly focusing on IT and Life Sciences
Overview of Research Triangle Park
Concept
Focus
areas
> World's largest university-related research park, situated
between UNC-Chapel Hill, Duke & N.C. State University
> Mixed dev't model – Govt was key driver in initial stages
> Park management is now focusing on making park more
attractive to smaller entrepreneurial firms
> Biotech & Life Sciences> Nanotechnologies
> IT
> Wireless Telco
> Managed by The Research Triangle Foundation, a
private non-profit organization
Managem
> The B.O.D. includes both academia and industry
ent
professionals
Liveable
aspects
> Various recreation activities (e.g: sports leagues, bike
paths in wildlife reserves) – However, main challenge is to
attract youth
Biotech & Life Science
> Management recently bought adjacent properties along I40 to be developed into the Park centre – Signature
landmark ("Convergence Center") planned to improve
park's visibility
> Rail line planned to improve the park's connectivity
Source: RTP Concise Public Master Plan , Roland Berger analysis
Benchmarking – Technology parks: Research Triangle Park, US
The park leverages a strong innovation tradition and collaboration
schemes to attract both start-ups companies and large R&D centers
Assessment of Research Triangle Park
Resources
Talent
> Steady flow of talented graduates from the 3 funding universities
Infrastructure (hard and
soft)
> Conference center, high-quality broadband, 5 incubators on-site providing services and advices
> A new regional tram system to be built, and new affordable housing and residential spaces
> Recreation activities not attractive to young professionals (e.g: nightlife, cultural events)
Funding
Network
Knowledge transfer
Support systems
Regulation & Clarity of roles &
objectives
Governance for STP management
Clear vision
Clear incentives
> Numerous venture capital firms implanted
> Presence of organization offering research financing support (e.g: Biotechnology Center)
> Numerous invention disclosures and licence agreements with university departments
> Public-private partnerships remain very common in the park's activities, especially with universities
> Efforts made to introduce multi-use, cooperative spaces and shared amenities designed to foster
collaboration and unity
> Networking events to foster open exchange of ideas (e.g: Get connected @ RTP, RTP 1800)
> Host several iconic organizations and networks (e,g: IUPAC, the Hamner, the William Burroughs
Welcome Fund, or Sigma Xi) to help recently created companies
> Stable management by The Research Triangle Foundation of North Carolina, a non-profit
organization
> Involvement of both industrial players and academia in the decision-making process
> Clear vision mapped out in the Master Plan 2011
> However, lack of measurable objectives in the Master plan
> No funding for potential tenants / specific grants for locating within the boundaries of RTP
> Incentives to be found through state and regional agencies, especially for specific industries,
such as digital media and biotechnology
Source: RTP Concise Public Master Plan , Roland Berger analysis
Benchmarking – Technology parks: Sophia-Antipolis, France
Sophia-Antipolis represents France's main national competency
center for Bio-chemistry and Information Technologies
Overview of Sophia-Antipolis
Concept
> Europe's largest park, founded to foster the development of
collaborative research between industry and universities
> Mixed model of development
> Park is applying for the newly introduced 'French Tech' label
which would give it better access to public funding
> Biotech & Life Sciences> Multimedia
Focus areas > IT
> Energy, Environment
Managemen
t
> Publicly owned land, jointly managed by two associations:
- Foundation Sophia-Antipolis (operational development)
- Symisa (Syndicat mixte de Sophia Antipolis) – Gov't reps
Liveable
aspects
> 9,102 inhabitants with a large student community
> Park surrounded by large national park and several large
Chemistry/Biochemistry
villages
> Many retail outlets, recreational activities (e.g: golf, tennis,
fitness) and international schools to attract foreign workers
> Transportation services is the key concern – New bus system is
already planned and aerial tram system being studied
Source: Foundation Sophia-Antipolis, Roland Berger analysis
Benchmarking – Technology parks: Sophia-Antipolis, France
The park's attractiveness is supported by an exceptional
environment, and its well-established networks and support services
Assessment of Sophia-Antipolis
Resources
Talent
> Many campuses of top universities and engineering/business schools on-site
> Ability to attract the students thanks to the quality of life and the environment
soft)
Network
Regulation &
Governance
> Weak public transportation services (traffic jams, high-frequency bus systems only planned for 2017)
> Commercial areas, and several incubation facilities available(e.g: Sophia-Antipolis Business Hub)
Funding
> Sophia Business Angels, specialized in ICT, healthcare, robotics and sustainable development
> Close collaboration with banks and government agencies providing financial grants
> Declining activity from private venture capital funds
> Existing programs linking academic research/industries and public institutes/start-ups
> SATT South-East organizes collaborative work projects, foster communication in the park, and bring
innovation from public research to industrial sector via commercial licensing for companies
Knowledge transfer
> S-A 'Business hub': Co-working spaces & shared innovation platforms (e.g: 'Comm4Innov')
> Campus@SophiaTech: Research and teaching center devoted to networks, bioinformatics
> Network and training sessions organized, especially for start-ups and SMEs
Support systems
> Formal association of stakeholders ("Secure comms solutions" cluster) to facilitate engagement
> Also other associations available to help create links and synergies, and to support recently created
companies
for STP management
> 2 main associations with separate responsibilities, are responsible for the park's development
"Foundation Sophia-Antipolis" and Symisa (which is made of several public shareholders)
> Slow decision-making process for strategic issues due to multiple stakeholders involved
Clear vision
Clear incentives
Source: Foundation Sophia-Antipolis, Roland Berger analysis
> New vision for the park recently published (Sophia 2020)
> Clear vision for the infrastructure improvement, lack of measurable development KPIs
> No policies specific to the park
> New policies fostering research and job creation, through tax deduction
> Park still suffers from lack of investor confidence due to frequent regulatory changes in France
Benchmarking – Technology parks: Cambridge Science Park, UK
The Cambridge Science Park focuses on cutting-edge research,
leveraging heavily on the University of Cambridge
Overview of Cambridge Science Park
Concept
> UK's oldest park, close to Cambridge to take full advantage of
the concentration of scientific expertise and facilities
> Park size: Total of 152 acres
> Mainly organic growth – Govt was only a driver in initial stage
> In 2014, Trinity announced it has been working on an
extension of the park, with 3 new research facilities
> Bio-medical
Focus areas > Computer / Telco
> Materials
> Energy, Environment
> Trinity is the landowner, developer and promoter of the park
Managemen > Park management services are carried out by Bidwells, a
t
property specialist
Liveable
aspects
> Various amenities to improve quality of life (e.g: Childcare
facilities, health and fitness club)
> Railway and bus tunnel projects are still under discussion
> To address rising property prices, Cambridge University is
working on "North West Development" ,a £1bn development
to build new houses, a nursery, retail areas and medical
centres
Biomedical/Pharmaceuticals
Computer/Telecoms
Source: Cambride Science Park Newsletter, Trinity college, Roland Berger analysis
Benchmarking – Technology parks: Cambridge Science Park, UK
The park created one of the most comprehensive innovation
ecosystems in Europe
Assessment of Cambridge Science Park
Resources
Talent
> Strongly benefits from its proximity to Cambridge University
soft)
> Specific services for start-ups, such as incubation facilities
> Several facilities available (e.g: gym, nursery, pubs), investments for building more housing options
> Transportation infrastructure needs to be improved (fast train project, new roads being studied)
Funding
Network
Regulation &
Governance
> Large number of angels funds and venture funds, very active in the area
> Includes the regional office of 3i, the UK’s leading venture capital company
> Large number of spin-off companies from the university's research department
> Management priority remains ensuring that academic research is close to industry applications
Knowledge transfer
> Shared facilities available, and networking events and conferences organized on-site
> Existing knowledge transfer program much more focused on exchange between large companies
and university students/research rather than between large companies and SMEs
Support systems
> Creation of 'Cambridge Enterprise' to support the University's entrepreneurs, and make them
benefit from existing networks and industry contacts
for STP management
Clear vision
Clear incentives
> Promotion by the University's college, and minimal bureaucracy present
> No central management body – Land management carried out by a local property specialist
> No holistic vision – Only the objective to bring together academia and industry for innovation
> No qualitative or quantitative KPIs
> New tax incentives for qualifying patents, though not park-specific
> Still room for improvement in terms of measures encouraging research funding and innovation
Source: Cambride Science Park Newsletter, Trinity college, Roland Berger analysis
Benchmarking – Technology parks: Daedok Innopolis, South Korea
Daedeok Innopolis focuses on promoting innovation in emerging
technologies within IT, biotechnology and nanotechnology
Overview of Daedeok Innopolis
Concept
Focus areas
> Established in 1973 as Daedeok Science town
> Started with government sponsorship as a pure research
center – Evolved into a complete R&D innovation cluster
> Government-led initiative
> Daedeok is part of the Innopolis network since 2005, which
gathers 4 parks under one name
Zone III
Zone I
Zone II
Zone V
> Biotech & Life Sciences > Nanotechnologies
> IT
> Space technologies
> The park is located on Daejeon City-owned lands and managed
Managemen by the Innopolis Foundation
t
> Innopolis is a non-profit organization under the Ministry of
Science
Liveable
aspects
Zone IV
Zone I
Zone I (27 km2) Daedeok Science Town
Zone II (4.3 km2) Daedeok Tchno Valley
Zone II (3.2 km2) Daedeok Industrial Complex
Zone IV (31.2 km2) Northern Green Bok
Zone V (3.9 km2) Agency for Defense
> International school and several museums (e.g : Buyeo National Examples of major tenants
museum) with regular festivals organized
> More affordable housing, a buzzing city center and
Technology companies
Public research institutes
entertainment areas will be built to improve attractiveness to
younger population
> New roads are also planned, as well as a bridge between the
park and Daejon City to increase its integration and
connectivity
Source: World Technopolis Association, Roland Berger analysis
Benchmarking – Technology parks: Daedok Innopolis, South Korea
The park leverages park-specific incentives and proximity to
public research centers to attract key national industry players
Assessment of Daedeok Innopolis
Resources
Talent
soft)
Funding
Network
Knowledge transfer
Support systems
Regulation &
Governance
> Leading university campuses on the Science Park (including KAIST 1))
> 11% of Korean PhD-level researchers specialized in Engineering and Biology located on-site
> Focus on quality of life offered, including recreational activities, and transportation infrastructure
> Incubation facilities and support services offered, but can be improved
> Innopolis Foundation funds available to foster the development and growth of local companies
> Small presence of VC funds or business angels compared to other parks
> Hub-and-spoke system linking research capacity with advanced industries
> Numerous shared research centers created (e.g: KAIST/Hyundai Heavy Industries)
> Strong tradition of transfer knowledge from research institutes to surrounding companies
> Weak technology transfer during the collaboration between MNCs and SMEs
> Cooperation agreements with other tech parks, to foster know-how that benefits park tenants
> Support available from Innopolis Foundation for technology at the commercialization stage
> No clear mentorship program to help SMEs and start-ups
for STP management
> Developed and managed by Daedeok Innopolis Foundation, under jurisdictional control of Ministry of
Science, ICT and Future Planning
> Highest-level management common between the three other Innpopolis parks
Clear vision
> Strong vision of the center's role (from a research institute park to a global innovation cluster)
Clear incentives
> Tax benefits and less strict regulations (e.g. pertaining to construction) for Innopolis-status
companies
1) Korean Advanced Institute of Science & Technology
Source: World Technopolis Association, Roland Berger analysis
> Quantitative and qualitative objectives clearly set out
Benchmarking – Technology parks: One-North, Singapore
Singapore's One-North attracts and clusters major IT and Life
Sciences international players and research institutes
Overview of One-North
Concept
> Developed as a model of integrated platforms with areas
dedicated to specific research fields, such as Biopolis
> The park's development relies on strong Govt leadership
> P&G invested SGD 250m in 2014 to build a innovation centre,
collaborating with A*STAR1) on new innovations for consumers
Vista Xchange
(Business & Lifestyle)
Biopolis
(Biomedical & Life Sciences)
Fusionopolis
(ICT, Science,
Engineering & Media)
Wessex Estate
(Arts & Creative)
> Biotech & Life Sciences > Media
> Physical Sciences
Focus areas > IT
> Managed by JTC, Singapore's lead agency to spearhead the
Managemen planning, promotion & development of the industrial landscape
t
> Overall development under the Ministry of Trade & Industry
Liveable
aspects
> Close proximity to MRT station & connected by major roads
> Designated green spaces within the park (Rochester Park)
> Cultural & recreational activities (e.g: SPAC2)), and facilities
designed for workers (e.g: Learning Vision for childcare)
> High price of existing housing supply (e.g: One-North
Residence)
1) Agency for Science, Technology and Research 2) Star Performing Arts Centre
Source: EDB Singapore, Ministry of Trade and Industry, Roland Berger analysis
Mediapolis
Biomedical/Pharmaceuticals
Benchmarking – Technology parks: One-North, Singapore
The park capitalized on talent and regulations to become a key
gateway for companies looking to establish R&D centers in Asia
Assessment of One-North
Resources
Talent
soft)
Funding
Network
Knowledge transfer
Support systems
Regulation &
Governance
for STP management
Clear vision
Clear incentives
> Proximity to world-class business schools (e.g: INSEAD) and educational institutes (e.g: NUS)
> Full scholarship provided to 1,000 PhD candidates to study overseas and come back to Singapore
> Efforts to create a liveable city: housing options (Wessex Estate), recreational activities (Star
Performing Arts Centre) and numerous facilities (chilcare centers, retail areas), green parks, etc.
> JTC Launchpad : Cutting-edge facilities and incubators to create vibrant start-up communities
> Global VC players (e.g : CVC) and Government research funds on-site, especially in Block 71
> The VC scene is not very active due to low level of tech entrepreneurial activity
> Partnerships and co-development facilitated between universities and private companies (e.g:
AstraZeneca with NUS Medical School on cancer research)
> Shared amenities to promote collaboration between researchers in both private and public sectors
> Public labs work alongside corporate labs to transfer and accelerate the development of technologies
> No support programs for start-ups and SMEs except for access to incubation facilities
> Agreement to make innovation testing possible (e.g: in the Kent Ridge public hospital for Biopolis)
> Developed and managed by JTC, an industrial estate management company under the Ministry of
Trade and Industry
> Make the hub as big as ones in the US by lowering entry barriers for new companies in Asia
> Clearly laid out action plans to achieve this vision
> Considerable tax incentives offered for R&D expenses
> No park-specific tax incentives offered beyond its attractiveness (talent, cutting-edge
infrastructure)
Source: EDB Singapore, Ministry of Trade and Industry, Roland Berger analysis
Benchmarking – Technology parks: Zhangjiang Park, China
Zhangjiang Park gathers numerous foreign-based companies
in the field of Life Sciences and Information Technologies
Overview of Zhangjiang Park
Concept
> In 1999, Shanghai Municipality identified key industries in which
the park should play a leading role in innovation
> Government-led initiative – Aggressive state policy
> Used as a pilot where administrative functions are assumed by
the park instead of the municipality (e.g: business registration)
> Biotech & Life Sciences > Semiconductors
> Multimedia gaming
Focus areas > IT
> Managed by Zhangjiang Hi-Tech Park Development
Management > Falls under the Municipality authorities, but the park is used
as a testbed for policy deregulation and has administrative
powers
Liveable
aspects
> Close to the city center and to Pudong International airport
> Cosmopolitan life in Shanghai attracts many foreign executives
> Tram service connects park to the Shanghai Railway – 10 min
away from the Lujiazui area, known to be one of the most
happening places in town (e.g: recreation, retail, housing)
> Growing supply of affordable housing for younger crowd
IT companies
Pharmaceuticals
Source: Shanghai Pudong Town Hall, Roland Berger analysis
Chemistry
Benchmarking – Technology parks: Zhangjiang Park, China
The park successfully attracted R&D operations thanks to
incentives used and availability of talent and funding
Assessment of Zhangjiang Park
Resources
Talent
soft)
Network
> Policies to recruit overseas Chinese students, who largely prefer to live in Shanghai
> Govt and high-tech companies provide strong support to main Zhangjiang incubator
> Facilities, housing and tramways – Convenient transportation to the international airport
Funding
> Grants from National Technology Innovation Fund
> Creation of Pudong New Area Venture funds, that led to numerous PE funds gathering and
clustering in the park
> Presence of specialized institutes (e.g: Medicine Institute of the Chinese Academy of Medical
Sciences)
> Some joint programs exist between these research institutions and multinational R&D departments
Knowledge transfer
Support systems
Regulation &
Governance
> Benefits from the city's top university networks
for STP management
Clear vision
Clear incentives
> Some SMEs can benefit from programs that outsource research to large MNCs (e.g. AstraZeneca)
> Due to Intellectual Property issue, knowledge transfer remains underdeveloped
> No mentorship program available for smaller companies
> Advisory programs can be provided by Zhangjiang Hi-Tech Park Development special department
> Managed by Zhangjiang Hi-Tech Park Development, under the Municipality's authorities –
Responsible for both real estate services and park development decisions
> Be a national model for innovation and a laboratory for new administration schemes
> No clear KPIs set up by the Municipality
> Park-specific policies exist, relating to R&D expenses and equity incentives for employees
> Expeditious customs clearance provided on-site
Source: Shanghai Pudong Town Hall, Roland Berger analysis
E2.
Benchmarking: Start-up hubs
Benchmarking – Start-up hubs: Tel Aviv
Tel Aviv ranks 2nd globally, due to its strong entrepreneurial culture,
highly developed funding ecosystem and large supply of talent
Tel Aviv Start-up Ecosystem
Overview
Trendsetter
Index
Index scoring
Funding
Index
20
15
10
5
0
Funding
20
Talent index
Talent
16
Support
index
Description
Notable
start-ups
> Globally ranked number 2
> Highest density of startups in the world
> Highest output of startups and a healthy mix
of startups in all stages
Support
> Mobile/online
apps
> Consumer
electronics
Trendsetting
MIRABILIS
16
4
> Healthy funding ecosystem throughout start-up
lifecycle
> Funding sources slightly more focused on angels,
less on family/friends
> Plentiful supply of talent; strong enterpreneurial
culture; 40% Masters/ PhD students
> 39% of hi-tech employees work in R&D
departments of MNCs – Significant knowledge
transfer
> Vibrant support ecosystem (e.g. platforms for
discussion between start-up founders and
investors)
> Tel Aviv entrepreneurs concentrate four times
more on new markets than on niche markets
> However, speed of adoption of new technologies,
business models and management processes is
relatively low
Source: Startup Ecosystem Report 2012 (Startup Genome); Roland Berger analysis
Benchmarking – Start-up hubs: Los Angeles
Los Angeles is ranked 3rd in the global start-up ranking,
mainly due to strong talent pool, support system and diverse
funding sources
Los Angeles Start-up Ecosystem
Overview
Index scoring
Funding
Index
20
15
10
5
0
Trendsetter
Index
Funding
14
Talent index
Talent
19
Support
index
Description
Notable
start-ups
> Ranked 3rd in global start-ups ranking, with
approximately 800 start-ups
> USD500 million raised in funding in H1 2013
>
>
>
>
e-Commerce
Digital media
Crowdsourcing
Online apps
Support
17
Trendsetting
10
> No funding gap – Healthy mix of capital sources
> Prevalence of early-stage funds (Lowercase Capital,
Karlin Ventures, SV Angel, Plus Capital, and Double
M Capital)
> Large supply of technology-qualified talent from
L.A.'s local universities
> Talent is honed via entrepreneurship programs in
universities in partnership with local accelerators
> Exemplary accelerator and incubator infrastructure
– Influx since 2011 has provided educational,
collaborative and supportive environments for
entrepreneurs and start-ups
> Strong in creative content creation, particularly in
entertainment, aerospace, fashion, and advertising
> Quick to adopt new technology (e.g. programming
languages like Python and Ruby)
Source: Startup Ecosystem Report 2012 (Startup Genome); LA Startup Ecosystem 2013 (Be Great Partners); Roland Berger analysis
Benchmarking – Start-up hubs: London
London is the leading start-up hub in Europe due to its talent pool,
strong support system and reputation as a global metropolis
London Start-up Ecosystem
Overview
Index scoring
Funding
Index
20
15
10
5
0
Trendsetter
Index
Funding
17
Talent index
Talent
12
Support
index
Description
Notable
start-ups
> Most successful start-up ecosystem in Europe,
with the largest output of start-ups
> Investors closed 135 deals with start-ups in
2013
>
>
>
>
Online games/apps
Online lender
Home swap club
e-Commerce
Support
20
Trendsetting
3
> Strong government support and equity
crowdfunding
> However, funding gap still exists due to lack of
super angels and micro VCs which target deal sizes
of USD500k to USD2.5 mil
> Easy access to talent with some of the top
universities in the world and diverse talent
> However, London entrepreneurs are less ambitious
and more risk averse than those in Silicon Valley
> Prevalence of support networks, shared
workspaces, mentorship, tech incubators & capital
infrastructure helps promote strong start-up
ecosystem
> Tax incentives offered to stimulate startup
investment
> Slower technology adoption than in Silicon Valley
(e.g. London startups relying more heavily on PHP,
and less on Java, Ruby, and Python)
Benchmarking – Start-up hubs: Sydney
Sydney's start-up scene is highly innovative and talented –
However, funding for start-ups still remains scarce
Sydney Start-up Ecosystem
Overview
Trendsetter
Index
Index scoring
Funding
Index
20
15
10
5
0
Funding
7
Talent index
Talent
15
Support
index
Description
Notable
start-ups
> Houses 950 tech start-ups, or 63% of total
tech start-ups in Australia
> e-Commerce
> Software
company
> Online apps
Support
9
Trendsetting
20
> Limited funding from angels and venture capital
firms
> Majority of start-ups are self-funded – Few rely on
funding from friends/family
> High level of education of workforce with diverse
skills & experience
> Influence of experience on start-up success
outweighs education – Most start-up
entrepreneurs have previous business experience
> Support during the ideation stage still limited but
access is widening with recent growth in
incubators, accelerators and angel groups
> Access to govt and large companies still difficult
> Strong trend-setting ability - 30% of start-ups
record a high degree of novelty in their products /
services
> Strength in manufacturing, retailing and consumer
service-oriented industries
Source: The start-up economy by PwC, 2013; Australia Small Business, 2012; Startup Ecosystem Report 2012 (Startup Genome); Roland Berger analysis
Benchmarking – Start-up hubs: Sao Paulo
Sao Paulo is a fast-growing start-up ecosystem – However,
challenges remain in terms of talent, support and funding
Sao Paulo Start-up Ecosystem
Overview
Index scoring
Funding
Index
20
15
10
5
0
Trendsetter
Index
Funding
11
Talent index
Talent
2
Support
index
Description
Notable
start-ups
> Largest start-up ecosystem in Brazil, with 605
start-ups
>
>
>
>
e-Commerce
Aggregator
Social network
Online education
Support
10
Trendsetting
5
> Large concentration of accelerators and venture
capital funds; however, there is still a funding gap
(Sao Paulo start-ups raise 86% less capital than
Silicon Valley start-ups)
> Young and energetic workforce; however, lacking in
terms of experience (entrepreneurs in Sao Paulo
are 59% less likely to be serial entrepreneurs
compared to entrepreneurs in Silicon Valley)
> Lack of regulatory incentives for start-ups and
structural issues (e.g. legal system does not allow
funding structures such as options/convertible
notes)
> Cost of doing business still high due to high taxes
and bureauracy
> Lower technology adoption than in Silicon Valley
> Sao Paulo start-ups rely heavily on PHP and .NET,
less on Java and Ruby
Source: Startup Ecosystem Report 2012 (Startup Genome), Roland Berger analysis
Benchmarking – Start-up hubs: Singapore
Singapore is the leading start-up hub in Asia due to start-up
friendly legislation, top-notch talent, and proximity to major
Asian markets
Singapore's Start-up Ecosystem
Overview
Trendsetter
Index
Index scoring
Funding
Index
20
15
10
5
0
Funding
13
Talent index
Talent
13
Support
index
Description
Notable
start-ups
> Leading start-up ecosystem in Asia
> #1 spot in the World Bank's "Ease of Doing
Business" ranking
> e-Commerce
> Aggregators
Support
5
Trendsetting
2
1) National Research Foundation's Technology Incubation Scheme; 2) Startup Enterprise Development Scheme by
SPRING, a Government agency set up to promote development of local SMEs
> Active early-stage funds spawned from government
funding e.g. NRF's TIF1), and SPRING's SEED2)
> Rely more on incubators and self-funding, less on
accelerators, super angels and VCs
> Highly educated work force and English-speaking
multicultural society
> 52% of entrepreneurs have Master/PHD education
> Highly active accelerators like Joyful Frog Digital
Incubator provide funding and mentoring to local
startups; Presence of intermediary organization
between entrepreneurs and angels (e.g. BANSEA)
> Lower technology adoption in Singapore than in
Silicon Valley (e.g. heavier reliance on PHP, Java,
and .NET, with no use of Ruby)
Benchmarking – Start-up hubs: Bangalore
While opportunities are present for Bangalore's start-up
scene, it must overcome challenges in all key areas
Bangalore's Start-up Ecosystem
Overview
Trendsetter
Index
Index scoring
Funding
Index
20
15
10
5
0
Funding
3
Talent index
Talent
3
Support
index
Description
Notable
start-ups
> Accounts for 41% of all new ventures
launched in India
> 4th largest tech cluster after Silicon Valley,
Boston & London
Support
> e-Commerce
> Software co.
> Digital agency
Trendsetting
(acquired by Facebook)
6
1
> Home to large number of venture capitals but
lacking in angel investors
> Overall funding gap, with 74% less funding raised in
Bangalore compared to Silicon Valley
> Talented workforce but lacks entrepreneurship
culture
> Entrepreneurship is not the first career path choice
- Lack of support from educational institutions
> Lacks incubators
> Requires more government support to establish
funded or supported incubators to bring together
entrepreneurs at ideation stage
> Low rate of technology adoption – Bangalore
engineers heavily rely on PHP and Java, and much
less on Ruby and Python compared to their peers in
Silicon Valley
Benchmarking – Start-up hubs
Overall, the top start-up hubs excel in at least 3 out of 4 criteria –
Most hubs rank highly in terms of talent, funding and support
Tel Aviv - #2
Los Angeles - #3
Funding
Index
Trendsetter
Index
20
15
10
5
0
Talent
index
Trendsetter
Index
Support
index
Funding
Index
Talent
index
Funding
Index
Talent
index
Trendsetter
Index
Support
index
Support
index
> Most leading start-up cities
rank highly in terms of talent,
funding and support
Talent
index
Singapore - #17
Funding
Index
20
15
10
5
0
20
15
10
5
0
> Only 2 of the selected cities
excel as trendsetters (i.e. Los
Angeles and Sydney)
Support
index
Sao Paulo - #13
20
15
10
5
0
Trendsetter
Index
Support
index
Sydney - #12
Trendsetter
Index
London - #7
Funding
Index
20
15
10
5
0
> The top start-up cities (i.e.
Tel Aviv, Los Angeles and
London) excel in at least 3 of
the 4 benchmark criteria
Bangalore - #19
Funding
Index
Talent
index
Trendsetter
Index
20
15
10
5
0
Funding
Index
Talent
index
Support
index
Trendsetter
Index
20
15
10
5
0
Support
index
Talent
index
Thank You
For Enquiries
Technology Hub Division
Contact Person
:
Telephone
:
Email
:
Puan Siti Shafinaz
03 – 8315 6111
[email protected]

Global Tech Hub Blueprint

Transcription

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