From Research to Innovation to Enterprise: the Case of Singapore
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CHAPTER 10 133 From Research to Innovation to Enterprise: The Case of Singapore LIM CHUAN POH, Agency for Science, Technology and Research (A*STAR), Singapore 10: The Case of Singapore of Case The 10: In just 50 years, Singapore has Figure 1: Singapore’s public R&D budget, 1991 to 2020 transformed itself from a developing economy with few natural resources to a thriving global metropolis. Its 20 gross domestic product (GDP) per $19.0 billion capita has risen from US$516 in 1965 to US$52,888 in 2015.1 In 2015, $16.0 billion 15 Singapore celebrated its Golden $13.5 billion Jubilee and the nation came together to reflect on how far the country had come and to envision the future. 10 This chapter aims to shed light on a billions S$, critical element of Singapore’s suc- $6.0 billion cess story: the country’s investments 5 in research and innovation. $4.0 billion $2.0 billion Singapore’s research and development 0 journey National National Science & Science & Science & Research, Research, Technology Plan Technology Technology Technology Innovation & Innovation & Since Singapore’s independence in (1991–1995) 2000 Plan 2005 Plan 2010 Plan Enterprise Enterprise (1996–2000) (2001 -2005) (2006–2010) 2015 Plan 2020 Plan 1965, the government understood (2011–2015) (2016–2020) that it had to develop science and technology (S&T) capabilities to Source: National Research Foundation, RIE2020 Plan, available at http://www.nrf.gov.sg/research/rie2020. overcome the constraints of the country’s limited size and lack of natural resources in order to ensure its economic survival. In 1966, the of Standards and Industrial Research by a national Economic Review late founding Prime Minister Lee (SISIR) formed in 1969. However, Committee, set up after Singapore’s Kuan Yew said at the opening of the the economy was still predomi- first major recession in 1985. That Science Tower in the University of nantly capital- and skills-intensive report recommended that Singapore Singapore, ‘our population ... is the before the 1990s. move up the economic value chain, one thing we have which makes up It was with the establish- away from low-cost competition for our lack of size and numbers, and ment of the National Science and in traditional manufacturing and it is of the utmost importance that, in Technology Board (NSTB) in 1990 services to develop new high-tech- the field of science and technology, and the launch of the first five-year nology clusters and activities. Over we should lead the field in this part National Technology Plan in 1991 the next 25 years, four more national of the world.’2 Singapore made early that the government began to invest S&T plans were implemented to efforts to build research and devel- in R&D in a significant and struc- position Singapore as an innovation- opment (R&D) capabilities, such as tured way (Figure 1). These devel- driven, knowledge-based economy. those under the Singapore Institute opments followed the 1986 report The S$19 billion Research, Innovation THE GLOBAL INNOVATION INDEX 2016 INDEX INNOVATION GLOBAL THE 134 Figure 2: Gross expenditure on R&D, 1990 to 2014 Reuters has ranked A*STAR as one of the world’s Top 25 Global Innovators (Government) at the 9th position.4 10 An outcomes-driven and phased approach 10: The Case of Singapore of Case The 10: n Public expenditure on R&D 8 n Business expenditure on R&D Singapore has taken a steady and sus- tained approach to funding R&D as a critical pillar of Singapore’s economic 6 development strategy (Figure 2). The public R&D budget has S$, billions S$, increased from S$2 billion under the 4 1991 five-year National Technology Plan to S$19 billion under the 2 recently announced RIE2020 Plan. Annual public expenditure on R&D (PUBERD) reached S$3.3 billion in 0 2014, a compound annual growth 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 rate (CAGR) of 11.1% over the past nearly two and a half decades (1990 Source: National R&D Survey of Singapore 2014. to 2014). Correspondingly, annual business expenditure on R&D has grown at a CAGR of 12.5% over the same period, from $0.3 billion in 1990 to $5.2 billion in 2014, the and Enterprise 2020 Plan (RIE2020) Singapore has also launched highest level yet. is the country’s sixth five-year major infrastructural initiatives to The development of Singapore’s plan; announced by Singapore’s strengthen its research and innovation research and innovation system has Prime Minister Lee Hsien Loong in system. The one-north masterplan been different from that of many January 2016, it represents a nearly was conceived in 2001 to catalyse other successful research-intensive 10-fold increase in the public R&D the growth of research-intensive countries around the world. Unlike budget over the S$2 billion National hubs in the biomedical sciences and the research and innovation systems Technology Plan of 1991. the physical sciences and engineer- of countries such as Switzerland With strong government com- ing (in Biopolis and Fusionopolis, and Germany, which grew organi- mitment to R&D and a steady stream respectively),3 where researchers cally out of centuries-old research- of public funding, a rich and diverse from the public and private sectors intensive universities or industries, research ecosystem has been built could co-locate. In October 2015, Singapore’s R&D push was predom- up in Singapore over the past two with the completion of the state- inantly a directed, government-led and a half decades. This ecosystem of-the-art facilities at Fusionopolis effort to upgrade and strengthen includes the research institutes of the Two, the one-north vision reached the competitiveness of the domestic Agency for Science, Technology and a meaningful milestone as a vibrant economy. In other words, Singapore’s Research (A*STAR), which focus and dynamic hub: home to over 250 R&D journey was rooted in a need on mission-oriented research for companies, 600 start-ups, 16 public for economic competitiveness and economic impact; research-inten- research institutes, five corporate growth. Today its research and inno- sive universities that concentrate on universities and institutes of higher vation policies continue to heavily academic research to develop a base learning comprising an internation- emphasize economic outcomes and of fundamental knowledge; and aca- ally diverse community of 16,000 impact. Given the many competing demic medical centres and hospitals scientists, researchers, and innova- needs for resources, Singapore also that focus on translational and clini- tors coming from both the public had to adopt a pragmatic, phased cal research, as well as corporate labs. and private sectors. It is therefore approach to its R&D initiative. heartening to note that Thomson THE GLOBAL INNOVATION INDEX 2016 INDEX INNOVATION GLOBAL THE 135 The launch of its National of Singapore (NUS) and the on open innovation—from research Technology Plan in 1991 provided Nanyang Technological University to innovation to enterprise. the framework for establishing (NTU)—to attract world-class The fifth national R&D plan— Singapore’s science and engineering academic investigators, train high- the Research, Innovation and research institutes over the follow- quality research talent, and create Enterprise 2015 Plan (RIE2015) ing 10 years. A key feature of these new knowledge in the specific areas (2011–15)—espoused, for the first 10: The Case of Singapore of Case The 10: institutes was their purpose: they of each centre. In the process, the time, differentiated open innova- were set up to serve Singapore’s international standing of Singapore’s tion strategies targeted at the differ- manufacturing sectors, mainly elec- universities rose significantly. In the ent enterprise segments that make tronics, engineering, and chemi- 2016 Times Higher Education global up Singapore’s economy. Singapore cals. By 2001 Singapore saw that university rankings, NUS was recognized then that its research the biomedical sciences presented ranked 26th and NTU 55th, up ecosystem had progressed to another tremendous growth potential. It from their respective positions 34th level of maturity, and a pipeline of started the Biomedical Sciences and 174th only five years before.6 promising research outputs had (BMS) Initiative to establish bio- In 2006, with a rapidly growing the potential to yield benefits. By medical sciences as the fourth pil- and diversifying research landscape, recognizing that multinational lar of the manufacturing economy, Singapore recognized the need corporations (MNCs), large local alongside electronics, engineering, for high-level coordination and companies, small and medium- and chemicals. Between 2001 and strategizing of the research efforts. sized enterprises (SMEs), and start- 2005, Singapore put into place the This led to the establishment of the ups each have different needs and key building blocks that would Research, Innovation and Enterprise capacities for conducting R&D establish core scientific biomedical Council, chaired by the Prime and absorbing research outputs, capabilities and attract the talent Minister and comprising interna- Singapore embarked on custom- needed for the endeavour. In its tional and local members, to steer izing partnership models and open second phase (2006–10), the BMS the overall direction of the strategy. innovation platforms suited to their Initiative focused on strengthening The National Research Foundation specific needs and circumstances. biomedical science capabilities to was established at the same time to For example, the differentiated value bring scientific discoveries from the plan, coordinate, and monitor the proposition that Singapore was able laboratory bench to the bedside, to execution of the strategy. to offer MNCs was the spectrum of improve human health and health- science and engineering capabilities care delivery, and to bring benefits From research to innovation to enterprise available within a small, compact to the economy and society.