SINGAPORE — It will be critical for the Republic to strengthen the capabilities of businesses to innovate and scale up, amid intensifying competition in the corporate landscape.

To achieve this, the innovation ecosystem has to be strengthened, and partnerships between companies — especially between large and small firms — should be encouraged, said the Committee on the Future Economy (CFE).

For example, “commercially oriented entities” with the technical expertise, business networks and instincts to commercialise the research findings and intellectual property of research institutions could be set up, the committee proposed in its report released yesterday.

A standardised IP protocol should be developed to streamline commercialisation processes, and the community of IP and commercialisation experts should be expanded.

The CFE also called for a review of the copyright regime to factor in “new ways of creating, distributing, accessing and using content”.

The Republic is starting from a position of strength, with its critical mass of high-tech sectors, vibrant start-up and financing eco-system, and its global pool of research scientists and engineers, noted the committee.

There are wide-ranging support schemes for businesses to innovate and increase productivity, but a more tailored approach — with access to networks, mentors, technology and financing — is needed for them to expand globally.

At the same time, more must be done to encourage private-sector funding from banks, venture capital funds and private equity funds.

The Government should simplify the regulatory framework for venture capital firms — especially the authorisation process for their managers.

Incentive schemes can be enhanced for venture capital investors and managers. More private equity firms could also be encouraged to come to Singapore, the CFE added.

Other suggestions ranged from facilitating crowdfunding to widening the network of angel investors.

More access should be given to cross-border project funding, while the Government should review the regulatory framework for finance companies to enhance their role as small and medium enterprise lenders.

“Where there are clear gaps in market financing — for example, for projecting financing in emerging markets — the Government can develop new forms of support for the private financing of Singapore companies, while ensuring that risk decisions remain in the hands of the private sector,” said the CFE.