KUALA LUMPUR: The Government has introduced a National Corporate Innovation Index (NCII), a benchmarking tool to encourage more innovation in Malaysian corporations.
In unveiling the NCII, Datuk Seri Najib Tun Razak said the measurement would help corporations identify innovation activities that would ensure their long-term sustainability.
“The NCII aspires to develop a more comprehensive, well-reasoned view of innovation investment and returns and educate the private sector community to help nurture a climate that encourages and not penalises innovation endeavours,” the Prime Minister said when launching the Innovating Malaysia Conference 2014 organised by Agensi Inovasi Malaysia.
Najib said the NCII, which took three years to develop, was drawn up with the support of several of the country’s major national corporations including Petronas and Sime Darby.
The NCII, which the Prime Minister described as being similar in spirit to Bursa Malaysia’s Environmental, Social and Governance Index, will serve as a badge of honour among companies.
Malaysia will be the second country in Asia to have such an index, which will be provided by London’s FTSE.
Najib said innovation was the main driver of growth in all advanced economies. He added that it was not just about Research and Development or high technology or patents.
Rather, it is about turning a new idea into something profitable or something that creates new value.
Najib said Malaysia ranked 33rd out of 143 countries in the Global Innovation Index 2014 and was in the top two among the 40 upper-middle income economies.
“However, we must not be complacent on where we are as we have been at this same rank for several years,” he said.
The Prime Minister said that making Malaysia’s economy more innovative would be a key focus of the upcoming Budget 2015 as well as the 11th Malaysia Plan.
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