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2 Οκτ 2013 (πριν από 3 χρόνια και 10 μήνες)

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Working Paper by Kim
-
Song Tan and Sock
-
Yong
Phang
, Singapore Management University 2005


This paper discusses Singapore’s efforts to
increase innovation and R&D in its economy


Early
2000
s: Singapore was billed as efficient and
capable of operating existing technologies, but
lacking in capacity to create new technologies,
compared to world frontier


Improvements in infrastructure of other Asian
countries have indicated that Singapore must
increase its innovation to stay competitive


This paper aims to determine whether an
innovation
-
driven economy requires a different
kind of infrastructure than an efficiency
-
driven
economy


How effective is the government’s approach?


Goal: to develop comparative advantage in innovation
by developing supporting infrastructure


Changes to: internal environment of firms and
external social policies and regulations


Innovation policy deals with large and small firms in
sectors of high tech manufacturing, services, creative
content


Increased awareness of innovation potential in small
firms and service and creative sectors shifted focus
from high tech MNCs to broader target


In 2001
-
2005 plan, National Science and Technology
Board aims to put infrastructure in place for basic
research programs, esp. in life sciences



Supply
-
push strategy: build up supply of
innovative workers and activities to gain a
first
-
mover advantage over competitors


Attract creative workers by providing a
culturally enriching lifestyle: increase
availability of artistic performances, social
interaction with other creative workers


Increase availability of R&D facilities,
intellectual property protection, venture
capital



One
-
North is an R&D hub that holds public and
private research institutes, business offices,
residential buildings, shopping centers and parks


$8.5 billion, 200 hectare development began in
2001, close to Central Business District


Serves biomedical sciences, information
technology and media industries


Two major complexes:
Biopolis

houses
biomedical sciences research and
Fusionopolis

houses information technology and media
research



Phase I and Phase 2
can
accomodate

6000 researchers
when fully occupied


Houses Genome
Institute of
Singapore and
Bioinformatics
Institute



Two
-
tower complex


Attracts companies
across the media
chain


Strong intellectual
property laws a
deciding factor in
media companies’
decisions to
relocate


2000
-
seat
performing arts
center in Downtown


Opened in 2002


Designed to attract
creative, innovative
workers to relocate
to Singapore


Strong IP culture is conducive to innovation and
Singapore’s plans to become regional hub for IP
management


Need for well
-
defined, strictly enforced IP laws
and institutions that promote IP knowledge
creation and management


Registry of Trademarks and Patents became a full
statuatory

board, the Intellectual Property Office
of Singapore, in 2001


IPOS signed treaties with US, EU and Japan to
develop regional and global IP networks


Launched Intellectual Property Academy, a
research and education center


Over 100 venture capital firms in Singapore


Government provides 1/5 of total capital
funding for venture capital firms


Economic Review Committee recommended
implementing harmonized tax incentives and
additional partnerships with government
-
linked companies to promote venture capital
investment


Recent increase in funding for research
programs and graduate programs


Government gave more
automony

to
Singapore’s three research universities


Singapore universities are recruiting more
foreign research faculty and working on more
joint projects with universities abroad


First private foreign university opened its
Singapore campus in 2004


Government grants for joint research projects
between local and foreign universities



Singapore’s government has historically tried to
regulate people’s social and political lives,
encouraging conformity and obedience


Efforts to promote entrepreneurship by slowly
loosening government’s control over society and
becoming more accepting of diversity


Housing Development Board loosens restrictions
on use of public housing as office space


Education Ministry allows for more private
schools to open and relaxes entry requirements
for foreign students at all levels of education to
study in Singapore


Could especially help innovation in creative
content sector because those workers tend to
value a liberal working environment




Strategic industrial policy involves winner
-
picking: government decides which industries
to push


None of the established innovative cities have
taken this approach


Worked for industrialization policies of 1970
-
1980s when making an efficient economy,
but the same approach might not work for
innovation


New PM Lee
Hsien

Loong

urges
Singaporeans to aim
for creativity and
abandon conventional
thinking at National
Day Rally 2004


Promises to change
the government into
one more accepting of
diversity


Comparative advantages:


accessible, central geographical location


strong efficiency infrastructure


Weaknesses:


underdeveloped innovation infrastructure


small domestic market


political and social constraints of the business
environment


Creative content is culture specific and thus more
difficult succeed in foreign markets compared to
high tech manufacturing and services industries


Size of domestic market may be a greater
obstacle for creative content firms


Specialization risk: Less certainty about which
industries will succeed when pushing the
frontiers of technology instead of merely
adapting existing technology


Concentrating limited amount of resources into
just a few sectors


Strong focus on electronic industry has recently
caused volatile swings in GDP


Justification: high
-
tech manufacturing is where
Singapore has the most comparative advantage
and pre
-
existing capacity for innovation



Economic Review Committee recommended a
becoming a regional hub for service industries as
part of the goal of innovation development


This requires significant regulatory reforms


Singapore has already been a leader in financial
services, transport and logistics, and healthcare
but has trouble staying competitive


After two major shipping lines,
Maersk

and
Evergreen, relocated from Singapore to Malaysia,
the Port of Singapore Authority made drastic
changes to its operations


Deregulation of financial sector has allowed
local firms to merge and foreign firms to
enter


Healthcare reforms aimed at cost reduction
have helped reduce shortage of doctors in
Singapore, but changes to foreign medical
student quotas still have not taken place


Education reforms (previously discussed)
have positive externalities: channeling
creative people into Singapore



Results have been mixed


Number of R&D workers has increased due to
influx of foreign researchers, but effect on
number of innovations is yet unknown


Number of patents filed increased from 1750
in 1995 to 5090 in 2000, but still less than
3% of patents and very few trademarks are
filed by Singapore residents


Singapore’s rank fell from 11
th

(2002) to 15
th

(2003) in Global Entrepreneur Monitor


Concern of overinvestment in innovation
infrastructure with such an aggressive strategy


What is the socially optimal level?


Authors argue for a more well
-
defined way of
evaluating innovation infrastructure


There is a minimum level necessary to create a
general innovation
-
oriented culture


Value should be measured by an investment’s
impact on the overall economy’s innovative
capacity, rather than impact on targeted industries


Innovation infrastructure also has consumption
benefits, improving quality of life is an additional
social benefit, so over
-
investment is less likely
than previously thought