| Summary: | The transition to a more innovation-based growth model is even more urgent in the current uncertain global context[1]. While the GDP growth rate has proven resilient in recent years, declining oil and gas output, coupled with economic shocks, including the recent COVID-19 pandemic, havedented the growth momentum. In this difficult context, a sustained increase in private investment, coupled with improvements in productivity willbe necessary to maintain a sustainable economic growth trajectory that enables Malaysia to reach high-income status. There is a significant body ofevidence to demonstrate a positive correlation between levels of innovation and productivity. Malaysia recognizes the need to embrace an innovation-driven growth model to weather the current global crisis and achieve its aspirations of becoming a high-income nation. Malaysia hastransformed what was once an agricultural economy, to one that is manufacturing-led. Recognizing the importance of productivity led growth model,research and development (R and D) resources and expenditures in Malaysia grew over the years as did policy efforts through reforms and improvements to bolster educational as well as science, technology and innovation capabilities and outcomes
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