The transformation from entrepreneurship to technology entrepreneurship development in Malaysia

Abstract

PurposeThe purpose of this paper is to discuss Malaysia's industrial development since achieving its independence in 1957 to 2007. The industrial development in Malaysia has gradually shifted from mere trading type of activities to technology based entrepreneurial activities.Design/methodology/approachThe transformation of Malaysia's industrial development from entrepreneurship to technology entrepreneurship is studied by applying the World Bank framework introduced by Bessant et al. The improvised framework has eight key dimensions that are developed as the key activities of technology entrepreneurship to assess the presence of technology entrepreneurship activity during the study period.FindingsThe initiation of the government's heavy industrialization drive in the 1980s had given rise to the growth of the manufacturing sector, and consequently, the implementation of public policies and government programmes in the 1990s have led to the shift of the economy from labor intensive manufacturing to high technology with higher value added activities. The findings thus indicate that the government's effort and support through the implementation of different policies and various state‐led programmes have basically driven Malaysia's entrepreneurial activities to be technology oriented.Research limitations/implicationsAs for the limitation, it is represented by the difficulties in identifying the key technology entrepreneurship activities and using them to analyze the entrepreneurship development at the macro level. Having analyzed at the macro level, this study hopes to contribute to the policy makers in drafting the government policies strategically so as to foster the growth of technology entrepreneurship in Malaysia generally, and to develop capabilities in particular industrial sectors.Originality/valueThe paper provides an overview of the industrial development in Malaysia as a background to the discussion on the transformation to technology entrepreneurship development.