Singapore is maintaining a steady commitment to research and development, while fiscal tightening has created greater uncertainty for such spending in many countries, Minister for Trade and Industry Lim Hng Kiang said on Thursday.
The country will set up a new S$1.35 billion 'Industry Alignment Fund' for projects with industry relevance towards which both public and private sector R&D players contribute, Lim said at the President's Science and Technology Awards Dinner. The fund is expected to facilitate more efficient private sector R&D investment.
For the next five years, 70% of the S$16.1 billion R&D budget will be geared towards achieving economic outcomes, compared to 65% in the current five-year tranche. The latest S$16.1 billion allocation is 20% higher than the outlay for the current five year period of 2006-2010.
The aim of the latest funding is to create an innovation-driven and knowledge-based economy, the minister said. "R&D will create the intellectual capital that will give Singapore an edge as lower-cost competitors catch up with us," he said. It will help to upgrade industries and open up new market opportunities.
For 2011 to 2015, Lim said 6% of the S$16.1 billion budget will be set aside to support the work of technology transfer offices, translational and innovation centres, and enterprise incubators and accelerators. At around S$1 billion, the level of support is almost doubling from the previous budget.
"How much we invest in R&D is important," said Lim. "But more important is what we invest it for and where we invest it."
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