Commercialization of Research Findings in Malaysia - Dissertation Example

Commercialization of Research Findings in Malaysia Table of Contents Table of Contents 2 Introduction 3 Thesis ment 5 Innovation and Commercialization 5 Innovation 5 Commercialization 7 Challenges Associated With Commercialization of Research Findings in Malaysia 10 Role of Government 12 Institutions and Universities Role 13 Review of Agensi Inovasi Malaysia (AIM) 15 Recommendations 19 Conclusion 23 Works Cited 25 Introduction Malaysia has made considerable progress over the last three decades. However, economic growth of Malaysia has slowed down and has noticeably weakened in recent few years. Hence, Malaysia urgently requires radical transformation in its approach of increasing economic development that shall have sustained long-term influence on the overall economic prosperity and competiveness of Malaysia around the world. Notably, productivity is increasing in Malaysia but at much slower rate. This depicts that efforts of the country to innovate and to create are insufficient which need to be immediately taken into consideration in order to compete profitably in the global scenario (National Economic Advisory Council, “New Economic Model for Malaysia”). Furthermore, the study of science and technology is crucial for the growth and development of the industries as well as the entire nation. The emerging markets across the world, particularly in Asia are continuously striving to innovate and introduce new products and new services. Hence, for the firms in emerging markets such as India, China and Malaysia, it is important to make considerable investments in research and development (R&D) and effectively initiate R&D outcome at the marketplace for sustaining their competiveness against the developed market firms of America and Japan. At the same time, it is essential for the policy-makers of these emerging market countries to recognize innovation and commercialization as one of the vital issues which needs to be critically addressed for ensuring thriving economic performance (Lester, “Universities, Innovation, and The competitiveness of Local Economies: Summary Report from the Local Innovation Project — Phase I”).. In the recent times, Malaysia and other developing nations have engaged in following certain strategic approaches for effectively utilizing innovation as one of the sources for growth and development. Over the years, it has been apparent that Malaysia has firmly been focusing its efforts towards transforming itself as an innovation-based economy. Evidently, there has been dramatic shift in terms of information, knowledge and innovation in the past few years. Nonetheless, shift in creativity and innovation alone cannot be regarded as enough for maintaining competiveness in the highly dynamic socio-economical environment. Therefore, emphasizing on research and development and introducing research results effectively at the market is essential for remaining viable in the present highly competitive market. Additionally, government, universities and research institutions are responsible for generating ideas and making proper use of the ideas for successful economic progression of the national economy. When compared with other developed countries, Malaysian government’s efforts towards commercialization are relatively low. This is because the process of commercialization is not an easy task to be performed (Govindaraju, “R&D Commercialization Challenges for Developing Countries the Case of Malaysia”). However, it was expected that global spending on R&D shall grow more than 5.2% which is over US$ 1.4 trillion by the end of 2012. Moreover, the increasing funding is expected to be driven from Asian economies. In this relation, the rate of funding in R&D is likely to be more in Asia which is estimated as 9% in 2012 as compared to 3.5% and 2.8% in Europe and the United States respectively. The combined initiatives of Asia, Europe and the US account for about 92% of the global spending on R&D (Battelle Memorial Institute, “2012 Global R&D Funding Forecast”). Thesis Statement The paper intends to critically examine commercialization of research findings in Malaysia. Furthermore, the paper makes valuable recommendations for improving and effectively mitigating various challenges related with commercialization of research findings. Innovation and Commercialization Innovation Generally, innovation means creation of something new. Often innovation involves transformation of knowledge into new processes, procedures as well as new products and services. Accordingly, innovation involves introducing new products and services at the marketplace by employing new ways of production methods and techniques. Thus, innovation is a complex process which requires both commercial and technical activities to be performed for successfully introducing innovative products at the market. It is an important determinant of commercial success which can be primarily attributed with increasing socio-economic well being (Walsh, “Conflict Between Radical and Incremental Innovation: Perceptions And Behaviours of Actors Caught In The cross Fire”). Innovations are essentially in two major forms including radical and incremental. According to Tellis, Prabhu and Chandy (2009), Radical innovation is an important aspect for the growth of industries and economies. Accordingly, radical innovation destroys old markets and creates new markets that facilitate the firms enjoying the leading edge to dominate the market and create international competiveness leading to the enhancement of their economies (Tellis, Prabhu & Chandy, “Radical Innovation Across Nations: The Preeminence of Corporate Culture”). On the other hand, incremental innovation attempts to improve the existing market and that brings incremental changes in the overall structure of the organization. In other words, it attempts to reinforce the established market leaders (Federation of American Scientists, “Innovation and Commercialization of Emerging Technologies”). Innovation in Malaysia has been identified as a major mechanism to enhance competiveness and attain the goals of New Economic Model as well as the Tenth Malaysian Plan. Currently, Malaysia is ranked at number 25 for innovation in the Global Competitiveness Index 2010-2011. Over the years, Malaysia’s objectives have been to hold on to the top position in ASEAN region and position its name among the top 10 countries of the world concerning innovation by the end of 2015. Notably, it can be viewed that the target set by Malaysia is not beyond the range of achieving as the performance of Malaysia in the recent years in terms of research and development (R&D), innovation and commercialization has been quite positive and steady (Rahman, Razak, Ismail and Anuar, “Innovation & Commercialization: Role of Technology Transfer Office in Malaysia Universities”). Moreover, the participation of private sector as well as government has also positively contributed towards innovation and commercialization of research findings. Due to the impact of globalization and increasing international competition, Malaysia and other developing countries around the world are obliged to upgrade their competitiveness by being more innovative in their product and service enhancement (Hassan, “The Commercialization Of Research By Public funded Research Institutes (PRIS) In Malaysia”). In this similar context, being innovative in its general meaning emphasizes that Malaysia has to perform considerable research activities and effectively market the research outcomes. Involvement in research activities will enhance and increase the knowledge base that shall ultimately lead towards the creation of new products Muhamad, Sulaiman, and Sanusi, “Innovative Capacity, Human Capital and Its Contribution to Economic Development in Malaysia”). Moreover, Malaysia has been constantly postulating its efforts towards technology development, but it is worth mentioning that revealing firm endeavors towards R&D does not guarantee innovation and commercialization as well as increasing competitiveness. Industrialization and manufacturing are the major contributors for the economic growth of Malaysia. Since 1960s, Malaysia has been considered as a newly emerging nation in Asia Pacific region. Prior to its independence, Malaysia was primarily an agricultural country but after its independence industrialization has emerged as a core segment for its economic development. Therefore, studies promoting innovation are necessary for making Malaysian industries competitive at international market (Talib, “Commercialization and Its Discontents”). Additionally, the future success of Malaysia in creating competiveness will be depending on how efficiently, Malaysia engaged in innovation activities. Commercialization Malaysia in its earlier years has been primarily engaged in import of new technologies as well as equipments from advanced nations. However, the changing business environment and policies towards becoming self sufficient has created an urgency of upgrading indigenous technologies and equipments (Nordfors, Sandred and Wessner. “Commercialization of Academic Research Results”). When compared Malaysian expenditure on R&D with other nations such as China, India, Korea and Singapore, it can be identified that Malaysia is far behind from this countries with respect to commercialization of R&D activities. In future, the gap between Malaysia and these nations relating to technology innovation is likely to expand, if Malaysia does not considers R & D activities crucial for the economic development of the country. Moreover, before proceeding with examining the commercialization of research findings, it will be wise to acquaint oneself with the concept of commercialization of research findings in Malaysia (Yaacob, Rasli, Senin and S Othman, “Perceptions of Commercialization Activities of Research Results among Academic Researchers in Malaysia.”). Commercialization is an initiative by firms to attain substantial profit through innovation by implementing new technologies to bring to light new processes, products and services (Federation of American Scientists, “Innovation and Commercialization of Emerging Technologies”). The notion of commercialization is slightly complex which is related with seeking competitive advantage and profit from ideas and research findings. The agenda of commercialization and university research in Malaysia is not that old as it is in other developed countries. The commercialization of university research has recently been in the limelight in the Malaysian context. Commercialization is a process which involves four primary phases namely, conception, gestation, infancy and adolescence. The commercialization of any product or service, whether technology oriented or simple customer based product or service, requires making cautious plans with regard to commercialization process. An ineffective commercialization process may render failure of products and services even if they are exceptional. Thus, commercialization of research findings must be properly framed for availing best competitive advantage at the marketplace (Renganathan, Yasin, Puvaneswaran, Tahir & Chelvarayan, “University-SME Clusters: A Research on Commercialization Perspective among IPTA & IPTS in Malaysia”). Over the years, the Malaysian government has been involved in introducing several initiatives and making considerable investment of funds in research and development process as well as in commercialization of the research outcomes. The policy makers in Malaysia firmly views universities as an important source of economic development, with the commercialization of their intellectual property which often remains unused by universities and industries. Nevertheless, commercialization success in Malaysia is still not very profound. According to a survey relating with implementation of 5232 projects by public research institutions and universities, it was identified that 14.1 percent of the total projects were eligible for commercialization and only 5.1 percent of the eligible projects were commercialized. This fact depicts that Malaysia is moving very slowly with respect to the aspect of commercialization of research findings. Moreover, many experts believe that Malaysia has been left behind by its primary competitors (Kormin, Othman and Ahmed, “The Role of Market Orientation Knowledge and Researcher’s Behavior In Recognition Of Commercialization Opportunity”). Wah and Narayanan postulated that commercialization of research findings in Malaysia is usually performed in terms of improving machinery, electronic engineering and the chemical industry group (Wah and Narayanan, “The Quest For Technological Competence Via MNCs: A Malaysian Case Study”). Contextually, commercialization of research findings is considered to be a vital aspect for the development of Malaysian economy. Consequently, the experts firmly emphasize on the need to engage rigorously in research activities and to make the most effective use of the research findings in order to efficiently compete with other nations (Hassan, “The Commercialization of Research by Public funded Research Institutes (PRIS) In Malaysia”). Challenges Associated With Commercialization of Research Findings in Malaysia Commercialization of research findings in Malaysia is still a rare occurrence within the country. There are various issues that contribute towards the limited commercialization of the research findings in Malaysia. Despite the awareness related with the significance of commercialization to national economic development, there has been very little reorganization and understanding of academic practices in the process of commercialization of universities’ research findings. A few of the major problems associated with commercialization of research findings in Malaysia include lack of funding, lack of business expertise/entrepreneurship, lack of academic commitment and other institutional problems among others (Omar, “The Commercialisation Process of Patents by Universities”). As stated earlier, one of the big challenges for commercialization of research findings is the capacity to acquire requisite funding during the pre-commercialization stage. In addition to this, studies have identified that the availability of finance is a vital contributor in the process of commercialization and its success Yaacob and Ismail, “Issues of Commercialization Activities of Biotechnology-Related Researches in Malaysian Research Universities”). There are certain determinants that limit the funding capacity for commercialization of research findings in Malaysia which is being listed below: Availability of poor venture capital and lack of its active involvement in research activities and commercialization of research outcome Poor financing system of banks and its failure to promote new-ventures Insufficient support from private sector for promoting funds and incentives to perform research and commercialization activities Lack of market funding and prototype funding Hence, constraints related with funding to R&D segment restrain government, academia and industry from performing commercialization of the research findings at a large scale. Another important determinant that restrains the commercialization of research findings includes lack of awareness and entrepreneur skill of staff related with research activities to commercialize their research findings (Omar, “The Commercialisation Process of Patents by Universities”). Additionally, failure to provide incentives and allocate rewards has also emerged as one of the challenges in the process of commercialization of research findings in Malaysia. At the same time, lack of proper interaction between universities and industry can be also defined as a critical determinant which reduces the efficiency of research activities and its commercialization (PricewaterhouseCoopers, “Appendix II - Tax incentives to promote innovation (Report)”). Universities in the USA are able to contribute significantly in the economic development of the country as in the US the interaction between universities and industries are much effective and crucial while in Malaysia, interaction between universities and industries is still in developing stage. Hence, it shall take a few more years to enhance the interaction between universities and industries in Malaysia to achieve expected results (Yaakub, Hussain, Rahman, Zainol, Mujani, Jamsari, Sulaiman and Jusoff, “Challenges for Commercialization of University Research for Agricultural Based Invention”). Role of Government The increasing competitiveness of the competitors in Asia and other parts of the world has immensely contributed towards mounting challenges for Malaysian firms to convert science and technology into competitive advantage. The concerns about the nation’ ability to effectively engage in research and commercialization has also raised questions against the role of government in promoting research activities within the country. Nonetheless, in the recent years, Malaysian government has been exerting significant impact on the process of innovation either intentionally or unintentionally. Furthermore, it is believed that government efforts towards commercialization of research findings shall immensely benefit commercial firms in implementing new technical approaches for the development of new products, process and services. Ministry of Science, Technology and Innovation (MOSTI) along with other agencies such as Malaysian Technology Development Corporation Multimedia Development Corporation (MDC) and Malaysian Biotechnology Corporation have been regularly involved in managing and providing funds and implementing programs to encourage the commercialization activities. The Malaysian government has also created incentive packages for providing tax deduction for promoting commercialization of research findings which facilitates the economic development of the country. At the same time, government in Malaysia in the recent times has also incorporated different incentives for encouraging the participation of private institutes and firms in R&D activities. As a result of the government initiatives, many Malaysian researchers in universities and government institutes have performed relevant inventions and discoveries that have ultimately led towards the development of products, processes and services. Malaysian government is determined in viewing itself among the standards obtained by America, Japan and European Union with respect to engagement in research along with making most suitable use of the research findings. The significant role played by the Malaysian government in promoting research and innovation can be recognized from its Five Year Plans which were initiated in 1971. Evidently, from the Seventh Five Year i.e. Malaysian Plans since 1996 to 2000, Intensification of Research in Priority Areas (IRPA) has involved in promoting research activities within the country and has made approval for more than 3,705 projects of worth RM 698.3 millions, which is a significant amount for a developing country such as Malaysia with population of 25 millions. During the period of 2001-2005, identical amount was made available for supporting R&D activities within the country (Wah and Narayanan, “The Quest For Technological Competence via MNCs: A Malaysian Case Study”). Institutions and Universities Role The role of private institutions and universities is crucial for bridging the gap between discoveries, inventions and commercialization. As stated above, the role of government is undoubtedly important for promoting research activities and commercializing research findings. The Chancellor of The University of Malaysia Mr. Tuanku Muhriz Ibni Almarhum Tuanku Munawir stated that the universities in Malaysia should effectively engaged in research activities and encourage commercialization of research findings in order to promote a culture that facilitates utilization of intellectual assets of the university for creation of wealth. Moreover, Mr. Munawir stressed on the fact that such involvement of universities will considerably contribute towards encouraging sustainable growth and development of the nation’s economy as well as such researches and its commercialization will also have manifold benefits for universities and researchers (Arbee, “UKM Chancellor Calls For Promotion Of Commercialisation of Research Findings”). In other words, the efforts of universities towards commercialization of research findings in Malaysia are experiencing relatively low success rates. Thus, question as to how the universities effort contribute towards increased commercialization and transfer of innovation to the industry has emerged as one of the highly discussed international agendas as well as in Malaysia. Universities in Malaysia are involved in transferring research findings to industry in several forms such as publications, conferences, collaborative research, patents, consulting and licenses among others. The increasing participation of university researchers with industries have actively contributed in technology development and their commercialization (Hussain, “Problem in commercialization of university research: Agriculture inventions in Malaysia”). In recent years, Malaysian universities are aware of the concept of commercialization and are rapidly transforming themselves from the traditional role of merely teaching to generating revenues and incomes. Besides performing the task of teaching and achieving traditional missions, universities are currently determined towards making significant contribution for the development and enhancement of the national economy. Universities today have become an integral part of rational system which includes government and industries that highlights innovation and strengthens economic progress. The relationship between universities and commercialization is presently more apparent. Evidently, many universities have important rights over certain major life-saving drugs and many other products. It facilitates them currently to shift their role from academic to more commercialized areas (Mowery, “Universities in National Innovation Systems”). Contextually, universities in Malaysia are identified to be having a major role in the economic development of the country. As a result of this, universities are considerably engaged in commercialization of their research findings as one of the alternative sources of income. Despite the significant efforts from the universities towards commercialization of research results for enhancing the economic performance of the country, transfer of research findings to the firms has not been able to prosper substantially (San, Narayanasamy and Dahlan, “Commercialization of Bioinformatics and Biotechnology Products in Malaysia: An Overview”). Review of Agensi Inovasi Malaysia (AIM) Agensi Inovasi Malaysia (AIM) is a legal legislative body that is incorporated to promote innovation within Malaysia. AIM is viewed as a driving force which is expected to lead Malaysia towards an innovative economy and thereby delivering wealth for the country and ensuring sustainability for future age band. In precise, AIM is expected to leverage innovation for creating wealth for the country. Thus, the objectives of AIM are to maximize existing resources prevailing within the country such as intellectual capital, talent and intellectual property to create new wealth. More importantly, AIM shall contribute in raising the nation’s Gross Domestic Product (GDP) and raising the people’s living standards in Malaysia (Agensi Inovasi Malaysia, “National Innovation Strategy”). The primary functions of AIM include To create national policies and strategies relating with promotion of innovation To effectively organize and coordinate the various activities performed by both public and private sector to leverage innovation within the nation To efficiently facilitate and promote investment activities and public-private initiatives concerning innovation To provide effective advices to government in matters related with innovation To make sustainable recommendations associated with innovation components for existing situation as well as for future Source: (Scribd Inc, “Agensi Inovasi Malaysia Bill 2010”) Furthermore, the council established by Malaysian government, known as Governance Council is held responsible for administration of AIM. The council consists of Prime Minister as the Chairman of AIM. Moreover, there are other responsible members in the council including the Minister holding portfolio for science, technology and innovation, the Minister held responsible for domestic trade and consumerism, the Minister concerning higher education and Minister holding portfolio for finance among others. In addition to this, AIM has provided framework for the implementation of various government innovation programs in order to promote and facilitate innovation in the nation (Mahendran, “Aiming for an Innovation Economy”). AIM has adopted the best practices and initiatives of other countries and it intends to implement these practices in the Malaysian context for ensuring development of the nation’s institutional environment, markets and socioeconomic stages among others. AIM, which started functioning since the year 2011, was provided RM71 million for designing programs and activities to facilitate innovation and commercialization of new product, process and services. Out of the allocated funds, AIM has invested more than RM10 million on various activities and programs including Inno Think Programs as well as for the creation of National Innovation Strategy (Ministry of Finance, “Economic Management and Prospects”). Innovation Business Opportunities (IBOs) launched and facilitated by AIM have been engaged in offering intellectual properties that are owned by universities and public research as well as other development organizations to private sector for the purpose of commercialization (The New Straits Times Press, “Innovation wealth”). Furthermore, AIM supplies finance and other perks to university researchers, public researchers and other innovators to promote commercialization of research findings for ensuring notable performance of the Malaysian economy (TheChoice, “A World of Innovation in 2013”). Moreover, AIM had made three considerable investments in three major companies namely Mecha Medic Solutions Sdn Bhd. (QEOS), Sekhar Research Innovations Sdn Bhd (SRI) and Quantum Electro Opto Systems Sdn Bhd for promoting commercialization of research findings at large scale (Singh, “AIM to Invest US$6.7 Million into Three Malaysian Companies”). Recommendations The role of Malaysian government, private institutions and universities in promoting commercialization of research findings cannot be undermined. Since the independence of Malaysia, its efforts towards becoming a competitive and prosperous economy can be indeed appreciated. Almost all the sectors of Malaysia have now recognized the importance of research activities and are utilizing findings in the most appropriate way. However, the efforts of Malaysian government and agencies towards accentuating on commercialization of research findings are not much vigilant alike other developed countries of the world. Thus, it is required that Malaysia should make more consolidate efforts towards research activities and commercialization of research findings in order to promote a prosperous economy and create competitive advantages at the world level. Despite the significant efforts made by Malaysia towards research activities and commercialization of research results, there are still certain challenges that need to be overcome and mitigated for successfully competing at world platform with its competitors and other developed economies. There are certain constraints that need to be considered carefully in order to ensure itself as an innovation-based economy (Crow, “The Future of the Research University”). The major challenges that need to be considered by Malaysia are the availability of necessary funds for promoting research activities and commercialization of research findings. In this regard, Malaysia should create necessary reserves and provisions particularly for funding research activities. Lack of funding often de-motivates innovators from conducting research activities. Consequently, Malaysia should establish more agencies such as AIM to facilitate and direct finance towards most useful research activities and to ensure effective commercialization of research findings. Moreover, these agencies along with allocating funds to research institutions and universities should also monitor that the funds that have been allocated to these institutions and universities are properly utilized in the best possible manner (Gulbrandsen and Rasmussen “Indicators For The Commercialization Of Research: What Do They Tell Us. The Case of Norway”). Most of the companies and entrepreneurs have revealed risk aversion attitudes. Thus, efforts must be made to create a culture where these companies and entrepreneurs recognize the importance of efficient transfer of technology from laboratory to the potential markets and further they should make considerable efforts towards promoting commercialization of the new technologies (Nandagopal, Gala and Premnath, “Improving Technology Commercialization At Research Institutes: Practical Insights from NCL Innovations”). Another important aspect for promoting research activities and commercialization of research findings in Malaysia requires that socioeconomic environment within the country must be conducive enough to motivate researchers to conduct research activities and industries to apply research findings in the development of new product, process and services (Technology Strategy Board, “Responsible Innovation Framework for Commercialisation of Research Findings”). In this regard, the government and non-government organizations should recognize the efforts of innovators and researchers and reward them handsomely for their considerable initiatives towards the economic development of the country. This will promote existing researchers to involve more rigorously in research activities and create passion among others to get involved in research activities to innovate (Aubert, “Promoting Innovation In Developing Countries: A Conceptual Framework”). One of the major reasons behind the success of developed countries such as the US in terms of commercialization of research findings can be attributed to considerable linkage of universities with industries. However, in the relationship between universities and industries with regard to commercialization of research findings is not appropriate which restrains Malaysia from acquiring best results from its initiative of promoting commercialization of research findings. Thus, Malaysia should strive to establish fair relationship between the universities and the industries so that the flow of research findings from universities to industries is performed in the most appropriate way (United Nations Economic Commission for Europe, “From Applied Research To Entrepreneurship: Promoting Innovation-Driven Start-Ups and Academic Spin-Offs”). In order to achieve the best outcome from research activities, Malaysia should also promote and adapt foreign technology transfer. At the same time, Malaysia should also engage in international R&D activities. The involvement of Malaysia in international R&D activities will further help it to tap foreign initiatives and knowledge which will facilitate the country to incorporate policies and strategies that shall best benefit the country with respect to the commercialization of research findings. Time is an important factor related with research activities. Thus, Malaysia should understand the importance of time in research related activities. In order to ensure timeliness of research activities and commercialization of research findings , the country should focus on establishing autonomous body that shall guide universities and other research institutions concerning timely availability of finance and other aspects. Moreover, these agencies should carefully monitor the work of universities and research institutions for ensuring effective utilization of time as well as for assuring highest degree of success related with commercialization of research findings (Pawanchik, Sulaiman and Zahari, “National Innovation Strategy Study”). According to the observations made above, the success rate of commercialization of research findings in Malaysia is relatively less when compared to other developed nations. In relation to this, Malaysia should identify the possible reasons that limit the wide spread success of commercialization of research findings and it should further attempt to mitigate the causes that restrain Malaysia from gaining large scale success of commercialization of research findings. Thus, rapidly identifying the obstacles and the problems restraining commercialization of research findings and mitigating them efficiently shall only help Malaysia to position itself as a prosperous economy in the years to come. On the other hand, failure to do so shall negatively influence the prosperity of Malaysian economy and as a result its economy will get stagnant and uncompetitive at world level (Kitagawa and Wigren, “From Basic Research to Innovation: Entrepreneurial Intermediaries for Research Commercialization at Swedish ‘Strong Research Environments”). Conclusion Malaysia has been able to conjure up significant achievements over the past years since its independence. However, it is worth mentioning that current business environment is much complex and dynamic than it was ever before. Moreover, the changes in business environment are projected to accelerate in coming years, which signifies that that the competition in the world level is going to be more intense. Consequently, it shall be hard for any economy to sustain its business profitably and attain competitive advantages with minimum level of innovation in product, process and services. Thus, it has been recognized by almost all the countries including Malaysia that R&D activities play an important role. Every nation in the world is now preparing to effectively compete with their major competitors at the marketplace and sustain their supremacy over the other for ensuring a prosperous economy. Similar to all the other nations of the world, Malaysia is also engaged in promoting research activities and commercializing research findings to attain competitive advantage at the global arena. However, the rate of development in this field has not been much impressive. Although universities, public and private research institutions are actively involved in research activities and commercialization of research findings, the degree of success is relatively low. There are several factors that contribute towards the emergence of these problems such as lack of adequate availability of requisite funds, failure to recognize the initiatives of researchers as well as failure to reward researchers and innovators, lack of linkage between universities and industries in commercialization of research findings. At the same time, government has launched certain agencies such as AIM in collaboration with other ministries such as Ministry of Science, Technology and Innovation, Ministry of Finance and Ministry of Trade and Commerce among others to speed up the process of research activities and commercialization of research findings. These ministries along with other agencies are regularly engaged in promoting commercialization of research findings for ensuring highest socioeconomic performance of the country. One of the important initiatives of the Malaysian government towards promoting commercialization of research findings has been the introduction of AIM. With the formulation of AIM, Malaysia attempts to build consolidated foundation to drive the nation towards an innovation-based economy. AIM seeks to achieve both horizontal as well as vertical coordination of government and NGOs for promoting research activities and commercialization of research findings. Furthermore, AIM attempts at facilitating both basic as well as exploratory research to be undertaken by universities and private-public research institutions to ensure that significant intellectual property that lie idle in the hands of universities and research institutions are commercialized for betterment of the nation. Despite the efforts of Malaysian government and NGOs, there are certain improvements that need to be considered for ensuring best results of their firm efforts towards commercialization of research findings. The necessities of further improvement may require securing and allocating requisite funds to universities and public research institutions. In addition to this, the establishment of proper relationship of universities and public research institutions with industries shall also facilitate in rapid and timely commercialization of research findings. Thus, precisely stating, there is still need for more constructive efforts to be made in order to ensure successful sustainability of Malaysian economy. Works Cited Arbee, Rejal. UKM Chancellor Calls for Promotion of Commercialisation of Research Findings. Universiti Kebangsaan Malaysia, 2012. Web. 17 Jan. 2013. Agensi Inovasi Malaysia. National Innovation Strategy. Transformation into the Innovation Economy, 2012. Web. 17 Jan. 2013. 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