Censu Galea

There is no doubt that Maltese industrial enterprises ranging from SMEs to multinationals are continuously under pressure to sustain and improve their competitiveness. Different industrial sectors are expected to collectively achieve ‘faster delivery’, ‘higher-quality, ‘eco-friendly’ and yet ‘cheaper’ products. The various ways and means of achieving such goals in industry are changing strategy day after day. Economic generation is not linked any longer to a stable business environment but one which undergoes constant fluctuations, both positive and negative. This affects the way in which entities operate and deliver. In today’s industrial world, competitiveness is necessary for the attainment of respective growth, when acting within the same playing field of others. The world out there is a daily struggle for the fittest, allowing little or no mistakes. High quality, reflected through adequate standards and certifications, coupled with high customer satisfaction are amongst the key drivers for assuring successful product fabrication. Prime Minister Lawrence Gonzi has underlined these priorities on several occasions, and government intends to deliver.

In this scenario, Maltese enterprises thus need to ‘innovate’ in the way products are produced and also in the way products function. In this competitive environment, research is of paramount importance as it provides a means for upgrading existing and creating new market products that meet extensive customer requirements. We sometimes underestimate the fact that the simplest of innovative designs could lead to excellent production and sales opportunities, leading to internal growth and economic sustainability.

Of course nothing happens without people. Even in research, it is people who think, design and put forth their innovative ideas for adoption by their respective industry and potential market sales. The creations of the mind include inventions, literary and artistic works, symbols, names and images. When these are commercially utilized, they become a very valuable ‘intellectual property’. People of one country can protect such intellectual creations in other countries through intellectual property right mechanisms, such as patents, trademarks and industrial designs.

The foregoing arguments mean that we have a twofold situation whereby, research and innovation are not only vital to the survival of industry, but also a means of generating rights that return financial benefits for their respective creation. Both are economic generators. Take the case of purchasing a particular household item. When readily available, such a product is taken for granted by all. However, in its creation, it involved intensive studies on its product design, its quality, its functional effectiveness and benefits when used, and ultimately benchmarking as to why a consumer should opt to purchase that particular product. If this exercise was not extensively executed beforehand, the producer could not have a comprehensive insight related to its economic viability, functionality, market demand and eventual customer satisfaction, thereby resulting in a product which would likely fail. Is it therefore time that we seriously analyze our industrial failures to help seek possible solutions? Why is ‘product Malta’ still expensive compared to others?

Market liberalisation has paved the way for increased competition, and the removal of levies on the first of May has added considerably to this reality. With no protection structures in place, domestically manufactured products have now encountered a new market challenge, implying that utmost quality, cost and delivery efficiency are crucial and fundamental. Would a consumer buy an ill-designed product? Would a product appeal if the consumer is explicitly made aware of what advantages could be retrieved out of it? Would anyone imagine buying a product not reflecting about value for money, and than re-purchasing it a few days later? Clearly, there is no beating around the bush here, because the reply is a straight ‘no’. On the other hand, a consumer is always on the search for new products that reflect an attractive design, are intended for innovative purposes, and which in some way or another, provide an added value in their usage.

It is within this context therefore that innovation and research and development (R&D) come in place. For the European Union, this has been listed as a major priority, with several initiatives being taken in this regard. Yet, official innovation scoreboards list Malta as currently weak even though I maintain that it does not really reflect what is really in place within this setting. We now do have in place a National Research Programme. However, I believe we have not as yet embarked on an aggressive awareness strategy alerting industry on both the benefit of doing research and also on the existence of this Research Programme.

In my regular meetings with the Malta Federation of Industry and the Chamber of Commerce and Industry, it transpires that the domestic market is increasingly becoming aware of such needs, and the quest for the engagement of researchers such as specialised industrial pharmacists is increasing in demand. The attraction to research as a career has to commence at a tender age, when students are still forging their intellectual education. We need to shift away from a culture that science subjects are the main elements solely to practice a profession in say medicine, dentistry or pharmacy – rather, it also leads to other professional and important careers such as engineering, within the industrial sector. Again, this indicates that we need to embark on an aggressive science popularization campaign.

In a recent encounter with the newly set-up Malta Qualified Persons Association, it was explained to me that there is a lack of graduates in chemistry who are a key to industrial research in this domain. It is therefore of the essence that educational institutions channel students to the possibility of such careers. On the other hand one has to identify a communal working ground between Government, University, Industry, Malta Enterprise and the Malta Council for Science and Technology (MCST) for the formulation, adoption and implementation of such a strategy. Times change and we are moving ahead into specialised markets. For example, the pharmaceutical industry is investing several of its operations in Malta, and seeking the services of specialised employees. We do provide semi-skilled workers, but we lack in others.

I therefore take this opportunity to call upon all the stakeholders involved to think ahead and join efforts in order to reach a common understanding on the way forward. Malta is fast developing in the areas of technology and information. IT has today become a priority following the telecommunications revolution we implemented some years ago. Our next step is research. As with IT, I am more than confident that with the right will, even here, we can acquire the necessary tools and resources to develop further within this sector. After all, research will improve industrial competitiveness, as a result, reflecting itself onto our national produce and economic growth. I have always maintained that our competitiveness can improve by providing a product service with a high quality, at a reasonable price and within an acceptable time frame. Research and development are fundamental to this concept. I do not accept statements that other countries are more capable then ours. I maintain that, in spite of our geographical limitations, we can deliver. Capability is not a question of dimension, population or resources, but how one can realistically translate challenges into opportunities , adapting them to our needs. We cannot base ourselves on quantity due to obvious reasons, but on the contrary we can on quality.

The upcoming conference organised by the Malta Branch of the UK Institution of Engineering Designers entitled ‘Exploiting design for industrial competitiveness’ is an initiative that deserves praise. The seminar due to be held at the end of this month, focuses on the manufacturing industry, which in the words of the Malta Branch “is not explicitly exploiting design to revive the industry”. I tend to agree, and hopefully will be underlining Government’s visions within this perspective and what we intend to achieve, during my address at the seminar.

R&D and innovation are still, in my view, relatively new and underexploited concepts to Malta. Although some of our industrial players have been aware of related benefits, many have not yet invested efforts in R&D. Awareness starts here and is never too late. From a political perspective, I am committed that my Ministry will be spearheading these initiatives. To follow, there is the requirement of a joint focus to reach our set targets, for the prosperity of domestic industrial operations, our potential as a nation, and an overall sustainable development of our economy. It is indeed time to think, create and innovate.