What more is needed to spur innovation in Singapore SMEs?

ACCORDING to the 2016 national R&D survey by A*Star, the average total sales revenue from commercialised products and processes attributed to research and development in Singapore per company grew by about 19 per cent over the preceding five years.

A closer look at the survey reveals that this growth rate was unevenly distributed amongst the various types of businesses. Growth in R&D in local large enterprises and foreign companies grew by 25 per cent and 30 per cent respectively, while a decline of more than 19 per cent was seen in small and medium-sized enterprises (SMEs). Local SMEs had also reduced their R&D expenditure from 8.1 per cent of total sales revenue to 7.5 per cent over the same period of time.

R&D - a key pillar of innovation - is key to unlocking productivity and sustained growth in the economy. Spurring innovation among Singapore SMEs, which employ about 65 per cent of Singapore's workforce and make up 99 per cent of all our enterprises, will be one of the key enablers in the transformation of the Singapore economy.