Proceedings of the 1st International Conference on Social, Science, and Technology, ICSST 2021, 25 November 2021, Tangerang, Indonesia

Research Article

Applying Peter Palchinsky’s Three Industrial Design to Improve Performance of the Government Venture Capitals in Malaysia

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  • @INPROCEEDINGS{10.4108/eai.25-11-2021.2319421,
        author={Mohd-Suhaimi  Mohamed-Ariffin and Haslinah  Muhammad and Mazlan  Hassan and Abdul Rahim Abdul  Samad},
        title={Applying Peter Palchinsky’s Three Industrial Design to Improve Performance of the Government Venture Capitals in Malaysia},
        proceedings={Proceedings of the 1st International Conference on Social, Science, and Technology, ICSST 2021, 25 November 2021, Tangerang, Indonesia},
        publisher={EAI},
        proceedings_a={ICSST},
        year={2022},
        month={7},
        keywords={palchinsky principles; government venture capital; innovation; failures; feedback; learning; screening; value-added activities},
        doi={10.4108/eai.25-11-2021.2319421}
    }
    
  • Mohd-Suhaimi Mohamed-Ariffin
    Haslinah Muhammad
    Mazlan Hassan
    Abdul Rahim Abdul Samad
    Year: 2022
    Applying Peter Palchinsky’s Three Industrial Design to Improve Performance of the Government Venture Capitals in Malaysia
    ICSST
    EAI
    DOI: 10.4108/eai.25-11-2021.2319421
Mohd-Suhaimi Mohamed-Ariffin1,*, Haslinah Muhammad1, Mazlan Hassan1, Abdul Rahim Abdul Samad1
  • 1: School of Business and Economics, Universiti Putra Malaysia, Malaysia
*Contact email: msuhaimi@unikl.edu.my

Abstract

The Palchinsky principles revolves around three industrial designs focusing on variation, survivability and selection. Applying these principles is hoped able to raise economic contribution of government venture capitals (GVCs) towards the gross domestic product (GDP) of Malaysia in the face of substantial declined of foreign direct investments (FDIs) into the country. As a result, several feedback loops are recommended to improve the GVCs’ collective performances pertaining two most important activities there. First, GVCs to adopt collective criteria chosen by the technopreneurs when evaluating funds applications. Second, to let them choose among themselves who should get the funding in a given cycle instead of decided by the management of GVCs alone. Third, adopt lottery like selection to choose winners eligible for funding. Fourth, shared responsibility among technopreneurs is another possible method where applicants are organized in a group and funding given to a ‘deserving’ group rather than to an individual technology-based company. This peer pressure approach could also be an option given the shared wavelength. Lastly, performance bonuses to deserving personnel at GVCs