NBS 2020 – Impact study:
Key Excerpted Takeaways
Prepared for 1MBAS - National Biomass Strategy Delivery Unit
(execution of NBS 2020)
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Advanced Materials
Agro Innovation
Alternative Fuels
Autonomous Systems 2.0
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2
Lux leveraged a range of sources to ensure the completeness
of the outside-in benchmarking activity
Lux leveraged internal data, 50 bespoke primary interviews across all target countries, and
additional secondary research to complete the study
Primary interviews:
• 50+ interviews with corporations, VC’s,
policy-makers, start-ups, and other
industry stakeholders to validate
benchmarking metrics and relative scoring
Existing Lux data:
• Alternative Fuels and Biobased Materials & Chemicals
capacity trackers
• Policy databases
• Prior reports and models
• Client-derived insights
• Ongoing insights from briefing
targets
Secondary research
• Supplement institutional
knowledge with desk research
• Sources include: industry
magazines, company
announcements, conference
proceedings, SEC filings, white
papers, government websites,
patents, and publications
Global biomass industry benchmarking
3
The framework measures the inputs and outputs of the
entire ecosystem to deliver comprehensive benchmarking
Inputs are measured as
“Robustness of infrastructure”
Outputs are measured as
“Commercial impact”
Public financing
Intellectual property
Quantity and quality of
scientific output
Biomass industries
Local industry presence
Private funding
Concentration of commercial
projects
Government policy
Local demand / consumption
of product
Mentorship for start-ups
Total production of product
Presence of centers of
excellence; industry consortia
Jobs impact
4
Between 2010-2013, barring Australia and Indonesia, all ten
countries have made meaningful strides in the biomass arena
5.0
Robustness of Infrastructure
MY
Brazil (BR)
Malaysia (MY)
United States (US)
Thailand (TH)
Indonesia (ID)
Finland (FI)
China (CN)
India (IN)
Germany (DE)
Austrialia (AU)
FI
US
DE
TH
CN
3.0
BR
IN
ID
AU
2010
2013
1.0
1.0
3.0
5.0
Commercial Impact
Of the 10 focus countries, 8 made improvements in both of their composite scores
Indonesia improved its “Commercial impact” composite score, but lower oil prices (driven by subsidies)
made it more attractive to export the biomass and import fossil fuels
5
An “ecosystem” approach separates the leaders from the
laggards; Malaysia truly dominates, especially in ASEAN
5.0
Malaysia (MY)
Thailand (TH)
Indonesia (ID)
China (CN)
India (IN)
Austrialia (AU)
Robustness of Infrastructure
MY
TH
CN
3.0
IN
ID
AU
2010
1.0
1.0
3.0
2013
5.0
Commercial Impact
Malaysia and Thailand are the only two ASEAN countries making it to the top-quadrant, where India in
particular lags behind in the bottom-left quadrant.
Malaysia made a giant leap, especially in robustness of infrastructure, thanks to great improvements in
government support (available mentorship, financial support, and mandates).
Indonesia slips behind in robustness of infrastructure compared to the other ASEAN countries. Due to a
shift in government incentives, private finance shifted away from biomass towards other renewables.
Thailand exemplifies a country with rich resources that falls
short on successfully implementing an ecosystem approach
Infrastructure scores
Thailand proactively incentivizes end
products
Thailand also funds clusters such as the
BIOTEC research units in Thailand Science
Parks, which is coordinated by the NIA,
part of the Royal Thai Government
A lack of mentorship and early-stage
support for small biotech companies
results in a lack of domestic start-ups
Thailand has yet to have tangible
scientific impact on the global research
community
Overall, the country’s neglect of a few
critical infrastructure inputs threatens
healthy industry growth
Government
financial support
4
Private financial
support
3
Government
mandates
2
1
Presence of
industry
0
Scientific impact
Mentorship
Scientific output
2014
2010
7
Malaysia has strong gov’t mentorship and scientific output;
global impact and private sector growth are the next hurdles
Infrastructure scores
Malaysia’s ease of doing business allows it to
attract more FDI than neighbors
Malaysia claims among the fastest-growing
volume of scientific output; impact,
however, could be improved
Overall, Malaysia has seen great growth in
government support (available mentorship,
financial support, and mandates) over the
past 5 years
Although Malaysia’s private sector activities
have yet to bear fruit, recent momentum
has proved promising
The Malaysian government has made
impressive strides; private sector should
quickly mobilize to ensure growth
Government
financial support
Private financial
support
Presence of
industry
5
4
3
2
1
0
Government
mandates
Scientific impact
Mentorship
Scientific output
2014
2010
8
Malaysia has several vehicles to support the bioeconomy;
streamlining could help accelerate overall impact
Government agencies and implementation vehicles:
Ministry of Science, Technology, and Innovation (MOSTI)
Malaysian Biotechnology Corporation (BiotechCorp)
Malaysian Investment Development Authority (MIDA)
Agensi Inovasi Malaysia (AIM)
Malaysian Palm Oil Board (MPOB)
Sustainable Energy Development Authority Malaysia (SEDA)
Independent agencies:
Malaysian Industry-Government Group for High Technology
(MIGHT)
Malaysian Palm Oil Council (MPOC)
Policies and strategies:
National Biotechnology Policy (NBP)
National Biomass Strategy 2020
National Green Tech Policy
Renewable Energy Act
Economic Transformation Plan - Pemandu NKEA Labs
Biotechnology Transformation Program (BTP)
30,000 foot view of the Biomass sector in Malaysia
Global Context
• Optimism
• Uncertain market
demand
• Immature/
unproven
technology
Current Positives
• Multi-pronged
strategy
• Financial support
• Strong momentum
Future Focus Areas
The 3 Cs
• Coordination
• Communication
• Consistency
10