ECHNOLOGICAL innovations can help tip the scales for smaller firms looking to succeed globally.
But small- and medium-sized enterprises (SMEs) often find themselves struggling for a breakthrough in innovation due to lack of funding, scientific resources and technological know-how.
Enterprise development agency Spring Singapore says it has just the right booster for local SMEs that find themselves in this situation - the Technology Innovation Programme or TIP.
Launched in 2006, the TIP helps smaller firms develop technological innovation as a competitive strategy, according to Spring, which acknowledges that SMEs play a critical role within their respective industries when it comes to innovation.
'We hope to support more SMEs in applying technology for process and product innovations so that they can grow more innovative enterprises that can compete successfully in the global arena,' said Mr Ho Chi Bao, Spring's deputy director for technology innovation.
Mr Ho says the TIP is suitable for any SME willing to embark on new projects involving the application of science and engineering to develop or improve new products, processes or business models.
'The result of the projects should be to grow revenue and generate value-add for the company,' he said.
Spring has supported about 500 projects and facilitated the secondment of 84 research scientists and engineers under the scheme so far.
In the process, it has helped more than 1,500 local firms in their quest to produce innovative products and services. Over $100 million in grants has also been awarded to eligible companies since the TIP was launched.
Central to the support were Centres of Innovation (COIs) set up with TIP funding to help firms take their innovations to the next level.
These centres were established by Spring through partnerships with local educational and research institutions.
Given that many SMEs lack in-house personnel to undertake research and development work, COIs help build up the technology innovation capabilities of smaller firms by offering technical consultancy and access to equipment and facilities.
'To fill the gap, Spring works closely with A*Star (the Agency for Science, Technology and Research) to facilitate the secondment of research scientists and engineers to SMEs,' added Mr Ho.
'This can help SMEs identify practical technologies and technology platforms relevant for their business growth.'
To date, there are five COIs with each focused on a different industry sector: marine and offshore, environment, precision engineering and electronics.
Earlier this year, TIP support received a shot in the arm with the introduction of the Business Upgrading Initiatives for Long-Term Development (Build) programme.
The $200 million package was launched in February to help local businesses beat the downturn.
With the Build enhancements, the level of support for TIP was beefed up from 50 to 70 per cent of project funding for applications received between Feb 1 and Jan 31, 2010.
With TIP funding, SMEs can also engage suitable overseas-based experts by paying part of their wages during secondments of up to two years in duration.
Perhaps, most significantly, businesses can get direct financial help to reduce the cost of technology investment.
'Projects such as the development of new, impactful products or processes, are inherently risky. Spring helps to defray up to 70 per cent of the more challenging technology innovation projects,' said Mr Ho.
However, TIP funding does not come easy.
Firms which want to enjoy TIP support must first produce a viable business plan incorporating strategic investment in technology.
'The business model should also be scalable, with a strong potential for growth,' said Mr Ho.
