Towards effective policies for innovation financing in Asia : a comparative study of Thailand, Malaysia, Singapore and Taiwan

Abstract

The paper is based on a comparative study of financing innovation policies and their underlying institutions of four Asian countries, Taiwan, Singapore, Malaysia and Thailand. It compares and contrasts their grant, loan, direct equity financing, capital market financing and tax incentives schemes across these countries. The paper conclude that the main factors different more successful countries to less successful ones lie on a) their ability to make policy instruments co-evolve with the changing needs of firms at different levels of capabilities; b) policy understanding, commitment, flexibility, coordination and learning; c) availability of corresponding non-financial policies and; d) underlying institutional factors such as laws, regulations and norms, attitudes on government roles in strengthening private firms, corruption and attitudes on corruption, trust, entrepreneurship, and, indeed, unity and capability of government bureaucracy.