Juggling regulation and innovation
ASPIRING business owners often cite regulation as a stumbling block to putting their ideas into action. While this could be the case in the past, local authorities have been embracing both legislative and structural changes in recent years to spur greater innovation and entrepreneurship among Singaporeans.
According to Neo Boon Siong, director of the Asia Competitiveness Institute at the Lee Kuan Yew School of Public Policy, regulation and innovation are not always at odds with each other.
Good regulation can, in fact, spur innovation in the business sector and result in a level-playing field for all involved. And while Singapore has turned out a good report card on the innovation front thus far, the business environment is constantly in flux and he stresses that the government will always review its rules and policies to keep new ideas flowing.
Q: How can the government strike a balance between regulation and innovation? Does regulation stifle innovation?
A: Regulation can either stifle or facilitate innovation. It stifles innovation when the rules are outdated and overly constrain new ideas and practices. It can facilitate innovation when it encourages market competition, ensures a level-playing field, and provides incentives for firms to invest in research, people and technology development.
Q: The government sector has always relied on tried-and-tested approaches. Is there room for innovation and thinking out of the box?
A: While tried-and-tested approaches have been used, there have also been significant innovations in the public sector, including many e-government applications. Other examples included the ERP (electronic road pricing), COE (Certificate of Entitlement), the recent workfare income support policy and the approach to awarding the IR (integrated resort) contracts.
There is no doubt that there can be more innovations and out-of-the-box thinking. Many individuals or groups have experienced and expressed frustrations at how sometimes the civil service can be so conservative and closed.
To be fair, past policies have been reviewed and revised. The changes in corporate tax, CPF and education policy in recent years attest to that. Furthermore, the garden city and city-within-a-garden concepts, and the recent National Day parade in Marina Bay are examples of out-of-the-box thinking.
Q: In the past five years or so, the Singapore government has shifted its focus to R&D, especially in emerging areas like biosciences and digital media. What is driving this quest for invention and innovation?
A: The main driving force is future economic growth. There is recognition that ideas, innovation and inventions would be needed to create value and earn a good living in the globally competitive economy.
Q: The government system is based on protocol and a proper order of things. Do you think that such a rigid structure is an impediment to innovation?
A: Yes, rigid structures and rules lead to bureaucratic delays, inflexibilities and close-mindedness. The impediments of administrative bureaucracy are ever present and there must be continuous efforts to review rules and structures, simplify procedures, and to create openness to the emerging and evolving needs of citizens and businesses.
This is an on-going journey of improvement. Since the environment is ever-changing, the removal of constraints and the incorporation of new ideas and practices will be an unending process that requires management attention and encouragement.
Q: What can the government do to foster greater innovation in the public sector?
A: The key strategies are creating an institutional culture that supports innovation and developing organisational capabilities that surface and execute new ideas. These are ultimately embodied in the mindsets and skills of people, and embedded in the organisational processes that stimulate learning and change.
Q: What is the role of infocomm technology in the drive towards innovation?
A: IT can facilitate easier access to new ideas and information, and encourage learning and sharing that are the foundations of innovation. The developments in IT also provide new capabilities that could be embedded in new products, designed into new processes, and used to transform organisational relationships and coordination.