Understanding the regional innovation support systems in developing countries: the state of Sabah in Malaysia

This paper presents empirical research on the regional dimensions of Malaysia's innovation system in one of the less-developed regions, namely, Sabah. Case studies on government organisations, public research institutions, universities and firms were undertaken to investigate the level of interactions (both intra-and inter-) of the innovation system at the regional level. The findings reveal that these interactions are negligible or almost absent. Such weak interactions have led to static levels of technological capabilities of firms operating in the regions. This paper argues that Malaysia's national innovation systems need to ensure that local and regional dimensions are incorporated into fashioning appropriate strategies to enhance technological capabilities at the regional level. Above all, an institutional framework that is responsive and flexible to the needs of the region must be in place.