- P-ISSN2287-1608
- E-ISSN2287-1616
- KCI
ISSN : 2287-1608
Development of Technological Innovation System in an Emerging Economy - A Study of the Malaysian Biodiesel Innovation System -
Abstract
Studies on innovation point towards the need for both in-house research and development (R&D) capabilities along with collaborations with external organisations or linkages with other firms, universities and research institutes. The argument is that innovation is not just a firm specific factor but requires support from several other factors which in turn involves developing linkages with various actors/institutions as sources of resources and/or knowledge for innovation. This paper presents findings from an exploratory study about the Malaysian biofuel sector as an innovation system. Instead of using the neo-classical approach and proposing policy interventions based on traditional market failure rationale (Bergek et al., 2008a), the functional analysis of the technological innovation systems (TIS) approach is used to analyse the biofuel sector in Malaysia to help reveal the strengths and weaknesses in terms of its fulfillment of seven critical functions which are necessary for the generation and commercialization of a product. In addition an attempt is made to reveal the inducement and blocking mechanisms affecting the Malaysian biofuel TIS and the seeking of improved poor functionality. These functional aspects of the Malaysian biofuel sector are analysed in different phases of its development to gain an understanding of the different institutions and their functions at different phases of the development of the innovation system.
- keywords
- Technology innovation system (TIS), Malaysia biofuel, functional analysis, event analysis
Reference
Abdullah, A.Z., Salamatinia, B., Mootabadi, H. and Bhatia, S. (2009) Current status and policies on biodiesel industry in Malaysia as the world’s leading producer of palm oil, Energy Policy, 37, 5440-5448.
Act 666 (2007) Malaysian Biofuel Industry Act 2007, Malaysia: PERCETAKAN NASIONAL MALAYSIA BERHAD, from http://www.kppk.gov.my/biobahan/ Akta%20Biobahan%20Api%20English.pdf as at 1 June 2012.
Adnan Hanim (2012) Malaysian dilemma on biodiesel exports - Commodities Talk Column in The Star News Paper, April, 17.
Agarwal, A.K. (2007) Biofuels (Alcohols and Biodiesel) applications as fuels for internal combustion engines, Progress in Energy and Combustion Science, 33, 233–271.
Ajanovic, A. (2011) Biofuels versus Food Production: Does biofuels production increase food prices?, Energy, 36, 2070-2076.
Akbar, E., Yaakob, Z., Kamarudin, S.K., Ismail, M. and Salimon, J. (2009) characteristic and compostion of Jatropha curcas oil seed from Malaysia and its potential as biodiesel feedstock, European Journal of Scientific Research, 29(3), 396-403.
Bergek, A., Jacobsson, S., Carlsson, B., Lindmark, S. and Rickne, A. (2008a) analyzing the functional dynamics of technological innovation systems: A Scheme of analysis, Research Policy, 37, 407-429.
Bergek, A., Jacobsson, S., Carlsson, B. and Sandén, B.A. (2008b) ‘legitimation’ and ‘development of positive externalities’: two key processes in the formation Phase of technological innovation systems, Technology Analysis & Strategic Management, 20(5), 575-592.
Bernama (2007, Dec., 15) Economy to gain from rise of biodiesel industry, says Najib, from http://econ.mpob.gov.my/economy/biodiesel/NEWS10.pdf as at 1 June 2012.
Bernama (2008, May, 14) Govt Eyeing Jatropha oil for biodiesel production, from http://econ.mpob.gov.my/economy/biodiesel/NEWS1.pdf as at 1 June 2012.
Business Times (2009, March, 23) Malaysia’s B5 scheme may use up 3PC of palm oil output, from http://econ.mpob.gov.my/economy/biodiesel/NEWS209.doc as at 1 June 2012.
Caen, R. and Chillinger, G.V. (1996) Drilling fluids: state of the art, Journal of Petroleum Science and Engineering, 14, 221-230.
Carlsson, B. and Jacobsson, S. (1994) Technological systems and economic policy: the diffusion of factory automation in Sweden, Research Policy, 23, 235-248.
Carlsson, B. and Stankiewicz, R. (1991) On the nature, function and composition of technological systems, Journal of Evolutionary Economics, 1, 93-118.
Chin, M. (2011) Biofuels in Malaysia: An analysis of the legal and institutional framework, from http://www.cifor.org/publications/pdf_files/WPapers/WP64CIFOR. pdf as at 5 May 2012.
Cooke, P., Uranga, M.G. and Etxebarria, G. (1997) Regional innovation systems: institutional and organisational dimensions, Research Policy, 26, 475-491.
Daily express (2007, Dec., 14) High CPO prices burden biodiesel players: CHIN, from http://econ.mpob.gov.my/economy/biodiesel/NEWS11.pdf as at 1 June 2012.
Economic Planning Unit (2006) Eighth Malaysian Plan, from http://www.epu.gov.my/ html/themes/epu/images/common/pdf/8th_msia_plan_c11_cont.pdf as at 1 June 2012.
Economic Planning Unit (2011) Ninth Malaysian Plan, from http://www.epu.gov.my/ html/themes/epu/html/rm9/english/Chapter19.pdf as at 1 June 2012.
Freeman, C. (2010) Formal scientific and technical institutions in the national system of innovation in Lundvall, B.A. (ed.) national systems of innovation: toward a theory of innovation and interactive learning, 173-192, London, GBR: Anthem Press.
Gregersen, B. (2010) The public sector as a pacer in national systems of innovation in Lundvall, B.A. (ed.) national systems of innovation: toward a theory of innovation and interactive learning, 133-150, London, GBR: Anthem Press.
Hekkert, M.P. & Negro, S.O. (2009) Functions of innovation systems as a framework to understand sustainable technological change: empirical evidence for earlier claims, Technological Forecasting & Social Change, 76, 584-594.
Hekkert, M.P., Suurs, R.A.A., Negro, S.O., Kuhlmann, S. and Smits, R.E.H.M. (2007) functions of innovation systems: A new approach for analyzing technological change, Technological Forecasting and Social Change, 74, 413-432.
Hellsmark, H.R.A. (2010) Unfolding the formative phase of gasified biomass in the European Union: The role of system builders in realising the potential of second-generation transportation fuels from biomass, from http://publications.lib. chalmers.se/records/fulltext/130446.pdf as at 19 May 2012.
Jacobsson, S. (2008) The emergence and troubled growth of a ‘biopower’ innovation system in Sweden, Energy Policy, 36, 1491-1508.
Jacobsson, S. and Bergek, A. (2004) “Transforming the energy sector: The evolution of technological systems in renewable energy technology” in Jacob, K., Binder, M. and Wieczorek, A. (eds.), Governance for industrial transformation, Proceedings of the 2003 Berlin Conference on the Human Dimensions of Global Environmental Change, 208-236, Berlin, Germany: Environmental Policy Research Center.
Jacobsson, S. and Bergek, A. (2006) A framework for guiding policy-makers intervening in emerging innovation systems in ‘catching-up’ countries, The European Journal of Innovation Research, 18(4), 687-707.
Jacobsson, S. and Bergek, A. (2011) Innovation system analyses and sustainability transitions: Contributions and suggestions for research, Environmental Innovation and Societal Transitions, 1(1), 41-57.
Jacobsson, S. and Johnson, A. (2000) The diffusion of renewable energy technology: an analytical framework and key issues for research, Energy Policy, 28, 625-640.
Jayed, M.H., Masjuki, H.H, Kalam, M.A., Mahlia, T.M.I., Husnawan, M. and Liaquat, A.M. (2011), Prospects of dedicated biodiesel engine vehicles in Malaysia and Indonesia, Renewable and Sustainable Energy Reviews, 15, 220-235.
Klein, W.R., Lankhuizen, M. and Gilsing, V. (2005) A system failure framework for innovation policy design, Technovation, 25, 609-619.
Lam, M.K., Tan, K.T., Lee, K.T. and Mohamed, A.R. (2009) Malaysian palm oil: Surviving the food versus fuel dispute for a sustainable future, Renewable and Sustainable Energy Reviews, 13, 1456-1464.
Lim, S. and Teong, L.K. (2010) Recent trends, opportunities and challenges of biodiesel in Malaysia: An overview, Renewable and Sustainable Energy Reviews, 14, 938-954.
Lopez, G.P. and Laan, T. (2008) Biofuels- at what cost? Government support for biodiesel in Malaysia, Canada: International Institute for Sustainable Development, from http://www.iisd.org/gsi/sites/default/files/final_malaysia_2.pdf as at 14 June 2012.
Lundvall, B.A. (2010) “Introduction” in Lundvall, B.A. (ed.), national systems of innovation: Toward a theory of innovation and interactive learning, 1-19, London, GBR: Anthem Press.
Malerba, F. (2002) Sectoral systems of innovation and production, Research Policy, 31, 247-264.
Ministry of Plantation Industries and Commodities Malaysia (2011) RINGKASAN MAKLUMAT INDUSTRI BIODIESEL MALAYSIA (2006 – 2011), from http:// www.kppk.gov.my/images/stories/pdf/Kilang_Biodiesel.pdf as at 12 July 2012.
MPOB (2011) 20 year series, from http://econ.mpob.gov.my/economy/EID_web.htm as at 4 December 2011.
MPOB (2012a) CPO info, from http://www.mpob.gov.my/smnd/index.php?mobj=021 &mact=2y as at 18 July 2012.
MPOB (2012b) Overview of the Malaysian oil palm industry 2011, from http://bepi. mpob.gov.my/images/overview/Overview_of_Industry_2011.pdf as at 1 June 2012.
Negro, S.O., Alkemade, F. and Hekkert, M.P. (2012) Why does renewable energy diffuse so slowly? a review of innovation system problems, Renewable and Sustainable Energy Reviews, 16, 3836-3846.
Nelson, R.R. (1992) National innovation systems: A retrospective on a study, Industrial and Corporate Change, 1(2), 347-374.
North, D.C. (1994) Economic performance through time, American Economic Review, 84(3), 359-368.
Ong, H.C., Mahlia, T M.I. and Masjuki, H.H. (2012) A review on energy pattern and policy for transportation section in Malaysia, Renewable and Sustainable Energy Reviews, 16, 532-542.
Poole, M.S., Van de Ven, A.H., Dooley, K. and Holmes, M.E. (2000) Organizational change and innovation processes: Theory and methods for research, New York: Oxford University Press.
Porter, M.E. (2008) The five competitive forces that shape strategy, Harvard Business Review, 86(1), 78-93.
Sarin, R., Sharma, M., Sinharay, S. and Malhotra, R.K. (2007) Jatropha-palm biodiesel blends: An optimum mix for Asia, Fuel, 86, 1365-1371.
Silalertruksa, T., Bonnet, S. and Gheewala, S.H. (2011) Life cycle costing and externalities of palm oil biodiesel in Thailand, Journal of Cleaner Production, xxx, 1-8.
Sloman, J., Hinde, K. and Garratt, D. (2010) Economics for business. (5th ed.), Harlow, GBR: Financial Times / Prentice Hall.
Smith, K. (2000) Innovation as a system phenomenon: rethinking the role of policy, Enterprise & Innovation Management Studies, 1(1), 73-102.
Suurs, R.A.A. and Hekkert, M.P. (2009a) Competition between first and second generation technologies: Lessons from the formation of a biofuels innovation system in the Netherlands, Energy, 34, 669-679.
Suurs, R.A.A. and Hekkert, M.P. (2009b) Cumulative causation in the formation of a technological innovation system: The case of biofuels in the Netherlands, Technological Forecasting & Social Change, 76, 1003-1020.
The Edge (2012, July, 3) Malaysian palm biodiesel losing out against rivals, from www.theedgemalaysia.com/in-the-financial-daily/210019-malaysian-palm-biodiesel-losing-out-against-rivals.html as at 15 May 2012.
The Star online (2008, April, 22) BIOFUEL SCORES PLUS POINTS WITH DBKL, from http://econ.mpob.gov.my/economy/biodiesel/NEWS2.pdf as at 1 June 2012.
The Star online (2010, Jan., 29) Biodiesel scheme faces delay, from http://biz.thestar. com.my/news/story.asp?file=/2010/1/29/business/5567501&sec=business as at 1 June 2012.
U.S. Energy Information Administration (2011) International energy outlook, from http://www.eia.gov/forecasts/ieo/ as at 12 December 2011.
U.S. Energy Information Administration (2012) Short-term energy outlook, from http://www.eia.gov/forecasts/steo/pdf/steo_full.pdf as at 18 July 2012.
West, J. and Gallagher, S. (2006) Patterns of open innovation in open source software in Chesbrough, H., Vanhaverbeke, W. and West, J. (eds.), Open innovation: researching a new paradigm, 82-106, GBR: Oxford University Press.
Zhang, Y., Dubé, M.A., McLean, D.D. and Kates, M. (2003) Biodiesel production from process design and technological assessment, Bioresource Technology, 89(1), 1-16.
Zhou, A. and Thomson, E. (2009) The development of biofuels in Asia, Applied Energy, 86, 11-20.
- Downloaded
- Viewed
- 0KCI Citations
- 0WOS Citations