PRE-COMMERCIALISATION FUND Pre-Commercialisation Fund are fund provided for prototype development, pilot plant or commercial

6.3 PRE-COMMERCIALISATION FUND Pre-Commercialisation Fund are fund provided for prototype development, pilot plant or commercial

ready prototype. Pre-Commercialisation Fund is further categorised into TechnoFund and InnoFund.

6.3.1 TECHNOFUND

TechnoFund is a grant scheme which aims to stimulate the growth and successful innovation of Malaysian enterprises by increasing the level of R&D and its commercialisation. The scheme provides funding for technology development, up to pre-commercialisation stage, with the commercial potential to create new businesses and generate economic wealth for the nation. Its objectives are:

i. To undertake the development of new or cutting edge technologies or further develop/value add existing technologies/products in specific areas for the creation of new businesses and generation of economic wealth for Malaysia;

ii. To undertake market driven R&D towards commercialisation of R&D outputs;

iii. To encourage institutions, local companies and inventors to capitalise their intellectual work through intellectual property (IP) registration; and iv. To stimulate the growth and increase capability and capacity of Malaysian technology-based enterprises, Malaysian Government Research Institutes (GRI) and Institutions of Higher Learning (IHL) through both local and international collaborations.

In terms of eligibility criteria, all categories of companies must have a minimum of 51% equity held by Malaysians, applicant or collaborator under the small and medium company category must have minimum paid up capital in cash of MYR10,000.00. However, start-up companies are exempted from this stipulation but must provide justification and supporting documents on the ability to sustain itself. None of the company directors or project team members have been convicted of any fraudulent In terms of eligibility criteria, all categories of companies must have a minimum of 51% equity held by Malaysians, applicant or collaborator under the small and medium company category must have minimum paid up capital in cash of MYR10,000.00. However, start-up companies are exempted from this stipulation but must provide justification and supporting documents on the ability to sustain itself. None of the company directors or project team members have been convicted of any fraudulent

Projects under the scope, responsibility or portfolio of certain Ministry, Department or Agency other than MOSTI; and applications from Research Institutes with internal research funding such as CESS Fund are not eligible for funding under the Pre Commercialisation Fund (TechnoFund).

6.3.2 INNOFUND

InnoFund is a grant scheme which funds the development or improvement of new or existing products, processes or services with elements of innovation. The project must have economic value and improves the social well-being of the community. InnoFund can be categorized into Enterprise InnoFund (EIF) and Community InnoFund (CIF).

Enterprise InnoFund (EIF)

The objective of the fund is to increase the participation of micro-businesses, individuals in innovative activities and encourage technological innovation of new or existing products, process or services for commercialisation. This fund is open to individual, sole proprietor, micro companies and small companies. Its eligibility criteria are:

i. All categories of companies must have a minimum of 51% equity held by Malaysians;

ii. Applicant or collaborator under the small and medium company category must have minimum paid up capital in cash of MYR10,000.00. However, start-up companies are exempted from this stipulation but must provide justification and supporting documents on the ability to sustain itself;

iii. None of the company directors or project team members must have been convicted of any fraudulent activities or the company been declared bankrupt, under liquidation or placed under receivership; iv. The project proposal must contain elements of technological innovation leading to commercialisation of innovative products, processes and services; v. The project must be for the development of new or existing products, processes or services with the potential for commercialisation. vi. Projects or products which are in the research stage or are ready for production or commercialisation are not eligible; vii. The project team must provide evidence of technical competency to undertake the proposed project.

viii. The curriculum vitae and supporting documents of the Project Leader and each project team member must also be submitted; and ix. Application from an individual must be accompanied by a supporting letter from a referee. Priority will be given to applications with projects: That has been supported by the Science Fund and has the potential to be commercialised; or Companies that have obtained the InnoCert Recognition.

Community InnoFund (CIF)

The objective of the fund is to assist community groups in translating knowledge and ideas into products, processes or services that improve the socioeconomic standing and quality of life of the community. This fund is open to Registered Associations/ NGOs, Registered Cooperatives and Community Group. Its eligibility criteria are: The objective of the fund is to assist community groups in translating knowledge and ideas into products, processes or services that improve the socioeconomic standing and quality of life of the community. This fund is open to Registered Associations/ NGOs, Registered Cooperatives and Community Group. Its eligibility criteria are:

ii. The proposal must contain innovative elements leading to the development of products, services or processes that improve societal well-being.

iii. Applicant must show proof of financial capability that they can fund the portion of project costs not funded under CIF. iv. Project must be undertaken in Malaysia.

6.3.3 FLAGSHIP PROGRAMME

The Flagship Programme was a special grant scheme programme provided by MOSTI to fund research in areas identified to have an impact on the development of STI and aligned with the New Economic Model (NEM). The Flagship Programme was a top-down approach and the National Science and Research Council (NSRC) sets the research priority areas and particular niches that need to be implemented for the sustainability of current Government initiatives. The Flagship Programme has since been discontinued in 2015.

The objective was for the development and generation of new technologies, processes, innovative products or value add existing technologies/products that have the potential to accelerate the identified research priority areas/ or for commercialisation and/or for societal well-being. The research priority areas under this Fund were:

i. Biodiversity (sustainable utilisation and conservation)

ii. Cybersecurity (Information security and autonomous system)

iii. Energy Security (Harnessing alternative resources and improving the efficient use of energy especially in the areas of renewable energy) iv. Environment and Climate Change (Ecosystem management, protection and improvement to mitigate flood, drought and air pollution; bio surveillance for environmental protection; eco- tourism) v. Food Security (Improvement of food crops, livestock and animal feedstock, exploitation of biodiversity for food/feed, post-harvest physiology and technology Production System and Precision Agriculture, improvement of biosecurity, bio-surveillance and Sanitary and Phyto- sanitary (SPS) measures for animal and plant genetic resources) vi. Medical and Healthcare (Diagnostic, prevention and treatment to enable the ability to mitigate the burden of lifestyle diseases; new and emerging diseases; Cancer; bio-surveillance in medical and healthcare) vii. Plantation Crops and Commodities (increasing the productivity and utilization, focusing on oil palm, timber, rubber, cocoa, kenaf, tobacco and pepper) viii. Transport and Urbanisation (Enabling the use of alternative energy sources and energy efficiency vehicles for environmental friendly transport, design and engineering in vehicle, infrastructure, systems and facilities, efficient urban waste management) ix. Water Security (Sustainable sources and processing, treatment and distribution of water)

The eligibility criteria for the Programme were:

i. Projects must be multi-disciplinary, covering the fields of science and technology and social science;

ii. Projects must involve a minimum of three institutions, including academic, research and industry;

iii. Memorandum of Agreement between collaborating Institutions must accompany the application, clearly stating the respective scope of work, IP agreement and ownership and ownership of all equipment purchased during the tenure of the project;

iv. The grant is open to researchers from Institutions of Higher Learning (IHLs), both public and private, and Research Institutes (RIs) (government and private) and Small and Medium Enterprises (SMEs); v. All categories of companies must have a minimum of 51% equity held by Malaysians; vi. Applicant or collaborator under the small and medium company category must have minimum paid up capital in cash of RM10,000.00. However, start-up companies are exempted from this stipulation but must provide justification and supporting documents on the ability to sustain itself; vii. None of the company directors or project team members have been convicted of any fraudulent activities or the company been declared bankrupt, under liquidation or placed under receivership; viii. The Flagship Programme follows a competitive bidding process; ix. Project proposals eligible for consideration must fall under the research priority areas identified above; x. Only Malaysian citizens can apply and lead Flagship Programme grant scheme, but can have international organisations or expatriates working in any of the organisations mentioned above as part of their project team; xi. The project team should consist of members who are qualified and competent on the technical aspects of the whole project; xii. Each team member must provide a CV clearly stating their previous research and highlight the tremendous success; xiii. Applicants are allowed to lead only one Flagship Programme at any one time; xiv. Research projects under the Flagship Programme grants must be conducted in Malaysia; xv. The Flagship Programme will not fund research already funded from other sources.