CHAPTER 113 Finance for Innovative Ventures: Broken Dreams?1

The new economic model (NEM) characterizes Malaysia in 2020 as market-led, entrepreneurial, and innovative. A deliberate move toward a more competitive society, dedicated to value adding to achieve high-incomes. In Chapter 111, “Innovation: Catalyst for Recovery,” I wrote: “The centerpiece to promote recovery and quality growth during hard times is to drive innovation.” The key element here is government’s will to make some fundamental changes, including “a stubborn resolve to change mind-sets in order to instill and build (and effectively put on the ground) a creative and innovative culture, and a national entrepreneurial spirit.” A year later (April 2010), I wrote in Chapter 112, “On Productivity and Talent Management”: “We can’t be expected to grow efficiently by simply doing more of the same. To become an increasingly higher-income nation, we need to shift to an economy that is innovation-led.” Innovation simply means fresh thinking and approaches that add value to consistently create wealth and social welfare. In the end, “innovation drives productivity, and productivity drives the flow of real income.” I ended with a remark on venture capital: “From ASEAN to Northeast Asia and from India to Japan, the big risk to innovative ventures remains the lack of ready access to finance at reasonable cost.” Policy makers have turned to creating tomorrow’s jobs rather than saving yesterday’s. The buzzwords in government ...

Get The Global Economy in Turbulent Times now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.