Speech by Second Minister S Iswaran at Techcracker Singapore 2014 at University Cultural Centre, NUS

Professor Tan Chorh Chuan, President, National University of Singapore

Ms Solina Chau, Co-founder, Horizons Ventures and Director, Li Ka Shing Foundation

Distinguished Guests

Ladies and Gentlemen

Good Morning.

I am pleased to join you this morning at the inaugural Techcracker Singapore 2014.

Techcracker is an event that aims to inspire change and new ideas in the technology, commercial and educational sectors.  I understand that the event first kicked off in Beijing in May this year and met with resounding success.  Singapore is the second leg of the roadshow, which is shaping up to be equally successful.  It is heartening to see so many students, local and international start-ups, as well as industry players with us today.

Singapore’s Innovation and Entrepreneurship Landscape

It is apt that Singapore is hosting the Techcracker event.  Our entrepreneurship environment has matured, and we are well-recognised as an innovation hub.  In July this year, INSEAD’s Global Innovation Index ranked Singapore in seventh position, up a position from eighth last year, as the most innovative economy in Asia. 

Our overall entrepreneurial activity has also increased.  According to the Global Entrepreneurship Monitor, total early-stage entrepreneurial activity in Singapore, which represents the percentage of working-age population about to start or who have recently started a new business, has grown from 4.9 per cent in 2006 to 10.7 per cent in 2013.  The number of employing start-ups has also increased from 24,000 in 2005, to 42,000 in 2013.  Of these, about 15,000 are technology-based start-ups.

Government Support for Innovation and Entrepreneurship

Innovation has a direct impact on company-level competitiveness.  PWC’s Innovation Survey 2013 found that respondents in the top 20 per cent in terms of innovativeness experienced growth rates that were 16 per cent higher than respondents in the bottom 20 per cent¹. At the country level, an IMF study² in 2004 found that, on average, a 1 per cent increase in a country’s level of innovation, as measured by its patent stock, led to a 0.1 per cent increase in its per capita GDP.

As Singapore’s economy matures, innovation and entrepreneurship will become increasingly important drivers of our economic competitiveness and growth.  In recognition of this, the Government has provided strong support to innovation and entrepreneurship in Singapore in several ways. 

First, we have set up institutions and programmes to support SMEs and start-ups in innovation.  The seven Centres of Innovation (COIs), set up by SPRING Singapore in partnership with selected polytechnics and research institutes, each focuses on supporting a key industry sector.  SMEs and start-ups are able to seek assistance from the COIs for innovation projects by tapping on their facilities, technology consultancy and training, and testing services.  Under A*STAR’s Growing Enterprises through Technology Upgrade (GET-Up), promising local enterprises can also leverage technical assistance and expert secondment from A*STAR Research Institutes to upgrade their technology.  In addition, last year, SPRING Singapore appointed three private sector translators (PSTs) in the medical and clean technology sectors, to help SMEs and start-ups validate potentially disruptive technology ideas and develop them towards market readiness in these promising growth sectors.

Second, the Government has put in place programmes to address specific needs in financing, infrastructural support and the overall environment for start-ups.

Start-ups with technologically innovative or disruptive ideas can tap on SPRING Singapore’s Technology Enterprise Commercialisation Scheme or TECS, which provides funding for proof-of-concept or proof-of-value projects.  It has funded about 170 technology projects since its inception in 2008.  SPRING Singapore’s Startup Enterprise Development Scheme (SEEDS) also provides innovative start-ups with equity-based co-financing.  In addition, to support the growth of innovative companies with high Intellectual Property (IP) content, IPOS launched the IP Financing Scheme last year to enhance their access to financing using their IP as collateral.

An example of a company that has benefited from government assistance is T-Ware.  T-Ware, which received funding from TECS, will be showcasing a therapy management garment at today’s event.  Known as the T-Jacket, the garment helps to calm children suffering from autism or other sensory disorders, by using haptics technology developed at NUS to apply pressure selectively on the wearer.  Test users in Singapore have responded positively to the T-Jacket.  With additional help from NUS Enterprise, the company has received external venture investment and has begun selling to international markets.  Just three months ago, T-Ware won the first prize at the 2014 Asian Entrepreneurship Award in Japan, beating 16 other companies from the region.

JTC is further developing LaunchPad@one-north to build on the success of the Block 71 infrastructure for start-ups.  Two more blocks (Blocks 73 and 79) are being developed, to create a comprehensive start-up launchpad called JTC LaunchPad@one-North.  The two new blocks will provide space for promising start-ups and incubators, and are slated for completion by end 2014.  This is expected to double the size of the community located at one-North to 500 start-ups and 2,000 people.

Working with partners to develop the eco-system for innovation and entrepreneurship

In developing the ecosystem for innovation and entrepreneurship, the Government works closely with many partners, particularly educational institutions and the private sector.

Institutes of Higher Learning, such as NUS, play a crucial role by shaping the experiences of their students, and nurturing and supporting them in their quest to develop new business ideas.  For instance, Patsnap was started in 2007 by three NUS graduates, and benefited from the support of the NUS Enterprise Incubator.  The company has developed a patent analytics platform and now serves clients from around the world, including many leading universities and global MNCs such as IBM, Logitech and L’Oreal.  Patsnap recently raised S$4.5 million, led by Vertex Venture Holdings, to further expand their operations worldwide.

The private sector is also a key partner in the Government’s efforts to develop a conductive environment for innovation and entrepreneurship.  Successful entrepreneurs are in the best position to help shape the development of initiatives to strengthen the eco-system, and provide mentorship to budding entrepreneurs.  For example, under the Action Community for Entrepreneurship (ACE) Start-ups Programme, start-ups can benefit from one-on-one mentoring from experienced entrepreneurs.  Innervative Learning, a financial literacy training provider, is one example of a start-up that has benefited from the ACE Start-ups mentoring programme.  Innervative offers a unique city-building game app called Oikonopolis which teaches key economic concepts through its in-game tutorials and storyline.  The company has benefited from advice from its mentors in areas such as business development and marketing, which has helped to shorten its learning curve.

In closing, I would like to thank the organisers of Techcracker Singapore for inviting me to the inaugural run of this event.  I congratulate you on this initiative, and it is encouraging to see such events on our start-up calendar.  It is testament to Singapore’s growing vibrancy as a start-up hub for the region.  I wish you a fruitful time at this event today, gaining new insights, ideas and contacts to power your ideas and innovations.

Thank you.

¹

www.pwccn.com/webmedia/doc/635144268498915970_unleash_innovation_2013_survey.pdf

²

www.imf.org/external/pubs/ft/wp/2004/wp04185.pdf