From: Creative Entrepreneurship in Asia ©APO 2005, ISBN: 92-833-7035-X Report of the Study Meeting on Creative Entrepreneurship held in Taipei, Republic of China, 18–21 May 2004 Edited by Prof. Tan Wee Liang Published by the Asian Productivity Organization 1-2-10 Hirakawacho, Chiyoda-ku, Tokyo 102-0093, Japan Tel: (81-3) 5226 3920 • Fax: (81-3) 5226 3950 E-mail: [email protected] • URL: www.apo-tokyo.org Disclaimer and Permission to Use This document is a part of the above-titled publication, and is provided in PDF format for educational use. It may be copied and reproduced for personal use only. For all other purposes, the APO's permission must first be obtained. The responsibility for opinions and factual matter as expressed in this document rests solely with its author(s), and its publication does not constitute an endorsement by the APO of any such expressed opinion, nor is it affirmation of the accuracy of information herein provided. Bound editions of the entire publication may be available for limited purchase. Order forms may be downloaded from the APO's web site. ASIAN PRODUCTIVITY ORGANIZATION Objective The Asian Productivity Organization (APO) is an inter-governmental regional organization established by Convention in 1961 to increase productivity in the countries of Asia and the Pacific through mutual cooperation. Membership APO membership is open to all Asian and Pacific Governments that are members of the Economic and Social Commission for Asia and the Pacific (ESCAP) of the United Nations. Governments outside Asia and the Pacific may become Associate Members. APO member countries are: Bangladesh, Republic of China, Fiji, Hong Kong, India, Indonesia, Islamic Republic of Iran, Japan, Republic of Korea, Malaysia, Mongolia, Nepal, Pakistan, the Philippines, Singapore, Sri Lanka, Thailand and the Socialist Republic of Vietnam. Organization The supreme organ of the APO is the Governing Body. It comprises one Director for each member country designated by their respective governments. The Governing Body decides on the policies and strategies of APO programs, and approves its budgets, finances, and matters relating to membership. The Secretariat, based in Tokyo, comprises the Secretary-General and Secretariat staff who execute the annual programs approved by the Governing Body. It has established operational networking with the designated National Productivity Organizations (NPOs) which act as national change agents for productivity promotion and as implementing agencies for APO programs in member countries. It also has close working relationships with other international organizations. Roles The APO serves as think tank, catalyst, regional advisor, institution builder and clearing house for productivity information to member countries. It assists member countries through human resource development, technical expert assistance and dissemination of knowledge and know-how on productivity. Programs and Activities APO's programs cover the industry, service and agriculture sectors, with special focus on socio-economic development, small industry development, human resources management, productivity measurement and analysis, quality management, production and technology management, information technology, development of NPOs, green productivity, integrated local community development, agribusiness, agricultural development and policies, resources and technology, and agricultural marketing and institutions. Its activities include basic research studies, surveys, symposia, study meetings, training courses, seminars, fellowships, technical expert services, study missions, publications, and audio-visual training materials. Report of the Study Meeting on Creative Entrepreneurship held in Taipei, Republic of China from 18 to 21 May 2004. This report has been edited by Prof. Tan Wee Liang. The opinions expressed in this publication do not reflect the official view of the APO. For reproduction of the contents in part or in full, the APO’s prior permission is required. ©Asian Productivity Organization 2005 ISBN: 92-833-7035-X FOREWORD The APO co-organized the Study Meeting on Creative Entrepreneurship in Taipei, ROC, 18–21 May 2004, with the China Productivity Center. Since its inception in 1961, the APO has consistently placed great importance on the productivity and quality improvement programs and activities of its member countries. Small and medium enterprise (SME) development constitutes one of the APO’s thrust areas, and one key aspect of SME development is the fostering of entrepreneurs. The study meeting, with the theme “Creative Entrepreneurship” was a timely event. Entrepreneurs often create significant breakthroughs and bold innovations in all fields of business. Entrepreneurial organizations similarly create new value and contribute to the economic growth of nations. The study meeting offered a valuable opportunity to examine not only creative entrepreneurship in SMEs but also in large corporations and how to foster creative entrepreneurs in the business sector. The event brought together a panel of distinguished speakers, both from the ROC and overseas, to cover a broad range of issues ranging from the key success factors for entrepreneurial creativity in firms to implementing creative entrepreneurship in established firms, incubation of innovative enterprises, and new product development, which is an important aspect of value creation. The panel was chaired by Professor Tan Wee Liang, Singapore Management University, to discuss the following themes at the study meeting: • Relevance of creative entrepreneurship for business growth and economic prosperity • Critical examination of success factors for entrepreneurs • Role of stakeholders, especially the government or NPOs, in promoting entrepreneurship • Measures available to access entrepreneurial activities in an economy and their economic impact • Development of enterprise “ecosystems” This volume is a compilation of the papers and views presented at the study meeting. The APO greatly appreciates the efforts of Professor Tan in editing this volume. We hope that the contents will provide information on policies, best practices, and current developments that will be of use to policymakers, entrepreneurs, and enterprises engaged in fostering creative entrepreneurship. Shigeo Takenaka Secretary-General Tokyo December 2005 CONTENTS Foreword Integrated Summary …………………….……………………………………...... 3 Resource Papers An Interface between Entrepreneurship, Creativity and Innovation: The Malaysian Experience………….......... Dato’ Mustafa bin Mansur 13 Implementing Creative Entrepreneurship in Corporations …….…. Tan Wee Liang 19 Product Innovation and Business Model: The Case of OKWAP Phone ………….…………………………………..…….. Jackson Chang 28 The Strategy to Create an Entrepreneurial Incubator — The NTU Case …………….. Kuang-Chao Fan, Helen Y.C. Hsiao and Lee H.S. Luong 40 Selected Country Papers Indonesia ………………………………………………………….. Susanto Joseph 51 Malaysia …………………………………………….…Zainal Abidin bin Othaman 64 Philippines …….……………………………………….……… Justino R Arboleda 71 Singapore (1) ……………………………………….…..... Aloysius Tay Ban Hock 79 Singapore (2) ………………………………..………….… Adrian Lim Meng Yan 86 Sri Lanka ……………..… Samantha Sathischandra Wanniarachchi Kumarasinghe 103 Thailand (1) …………………………………………...… Waleeporn Thanathikom 112 Thailand (2) ………..………………………………..… Wiwat Chutiwanichayakul 119 Vietnam …………………………………………….…………….. Pham Gia Minh 130 Appendices List of Participants ….…………………………………………………………….... 139 List of Resource Persons …………..………………………………………………. 142 Program and Schedule ……………………………………………………………... 143 INTEGRATED SUMMARY BACKGROUND Entrepreneurship is the driving force bringing innovations to the marketplace and establishing a community of high-growth firms. A creative entrepreneurial sector or community within an economy can contribute significantly to its prosperity. With change as the constant in today's globalized world, entrepreneurs constantly seize any arising opportunities to create new wealth. Peter Drucker in his book Innovation and Entrepreneurship noted that: “Entrepreneurs see change as the norm and as healthy. He or she always searches for change, responds to it, and exploits it as an opportunity.” Embracing creativity and innovation, an entrepreneur’s products or services can bring about business growth, productivity improvement, job and wealth creation, an enhanced image for the economy, and ultimately a better quality of life for all. Policy makers have recognized that creative entrepreneurship needs to be encouraged through appropriate policies that foster entrepreneurship, innovation, and technological development. Some countries have introduced science parks in the hope that the provision of infrastructure will spark the development of high-tech ventures leading onto new innovations and inventions which can become global products and services. Within enterprises, there is a need for creative entrepreneurship. Some enlightened corporations have fostered creative entrepreneurship within their organizations by providing opportunities for innovation, intraorganization venture financing, and ownership of employee-initiated projects. More needs to be done in this area to motivate the involvement of incumbents in a corporation through tangible and intangible means. This study meeting sought to promote the exchange of knowledge of, experience in, and approaches to creative entrepreneurship and creativity and innovation as a strategy for business excellence and growth in APO member countries. Sixteen