Question
Ms Foo Mee Har: To ask the Minister
for Trade and Industry (a) how successful have
Government productivity schemes been in encouraging companies to innovate and
invest in research and development; and (b) what more can be done to help
companies starting on the innovation journey to qualify for Government support.
Oral Answer by Mr S Iswaran, Second Minister
for Trade and Industry
1. There
are various Government schemes to support our companies’ innovation journey. SPRING
offers the Innovation and Capability Voucher scheme (ICV) which provides
support to SMEs for consultancy services and the implementation of integrated productivity
solutions. Since 2012, SPRING has awarded around $65 million to SMEs through
13,000 ICVs.
2. Another
example is A*STAR’s Technology Adoption Programme (TAP), which was launched in
July 2013. Under TAP, teams of advisors link SMEs with providers of
technological solutions, or work with public research institutions to develop innovative
solutions for adoption. So far, A*STAR has engaged more than 4,000 companies, and
more than 1,200 companies have implemented technology solutions under the
support of TAP.
3. For
companies that are pursuing more advanced innovation projects, assistance is also
available from SPRING’s Capability Development Grant (CDG), which co-funds up
to 70 per cent of qualifying costs. The CDG covers a broad range of productivity
improvement areas such as enhancements to workflow processes and technology
innovations. In 2014, SPRING assisted more than 1,000 companies under CDG, and
provided over $100 million in funding support.
4. In
addition, the Productivity and Innovation Credit (PIC) scheme provides tax
deductions and cash payouts to help defray the cost of a broad range of investments
along the innovation value chain, from simple purchases of IT and automation
equipment to more complex R&D projects to acquire new knowledge and create
novel products. In Year of Assessment 2014, 54,000 companies made PIC claims.
5. To
develop Singapore’s innovation capabilities, SPRING set up seven Centres of
Innovation (COIs) in our public research institutes and polytechnics. These
cover specific industry sectors, in Electronics, Environment and Water
Technology, Marine and Offshore Technology, Food Innovation, Supply Chain
Management, Precision Engineering, and Materials. The COIs provide technical
consultation and facilities to support our companies in developing and
prototyping innovative products.
6. The
results from these efforts have been encouraging. In the 2014 SME Development
Survey conducted by the DP Information Group, 75 per cent of the SMEs reported
that they were planning to implement innovation in their companies. R&D
investments by local SMEs have also increased. In 2012, local SMEs spent nearly
$550 million on R&D activities. This is a 70 per cent increase in R&D
expenditure compared to 10 years ago, when local SMEs spent around $320
million.[1]