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PRIME MINISTER GOH CHOK TONG'S NATIONAL DAY RALLY 2001 SPEECH AT THE UNIVERSITY CULTURAL CENTRE, NATIONAL UNIVERSITY OF SINGAPORE ON SUNDAY, 19 AUGUST 2001 AT 8.00 PM

INNOVATION
We need also to foster a culture of innovation. This is the third leg of our new economic strategy. Efficiency is important. But it can be easily matched by others, and does not provide a sustained advantage in competitiveness. In the globalised economy that permits rapid spread of technology at low cost, efficiency is only an entry-level requirement. Innovation and imagination give an economy or a company that extra edge. Today, wealth is generated by new ideas, more than by improving the ideas of others.

Sporadic innovation by a few Singapore companies and the public sector is not good enough. The innovative spirit must permeate our whole society. The question is how to create an environment that encourages many of us to become innovators.

By innovators, I mean a people whose minds are always looking for new ideas and new ways of doing things, not simply copying what others have invented. For this, we need non-conformist thinking.

NON-CONFORMIST THINKING
Let me give you an example of non-conformist thinking. I happened to tune in to the BBC on the eve of National Day. There was an interview with a former American-Chinese TV presenter turned entrepreneur.

This lady entrepreneur has produced a range of cosmetic products tailored for Asian women. She explained that Asian women have different features and different skin colouring, so cosmetics meant for Caucasian women do not suit them. For example, when Asian women use a pink-based foundation, they look as if they are wearing a mask. Also, Caucasian women generally have more prominent noses, so their cosmetics seek to make their noses less prominent. On the other hand, Asian women generally have small noses, so they need to use cosmetics to make their noses more prominent. Otherwise, she said, 'You would not even see a nose on their face!'

This woman did not simply copy others. A conformist would have done that, and simply manufactured and sold western-based cosmetics in the Asian market. Instead, she thought out-of-the box, hoping to hit the jackpot.

I am also impressed by the innovative spirit of our National Library. It collaborated with the private sector to design and develop a system to track the movement of library books, so as to cut down the time visitors spend queuing to check in and check out books. The books are implanted with a microchip which emits radio waves. To borrow a book, you put it on a pad at the self-check machines, and the book is registered as borrowed. There are hardly any more queues. Returning the book is also a breeze. You simply slide the book down a book-drop chute, and it is registered as returned.

Our National Library was the first library in the world to use this technology. It has patented the invention.

NATIONAL INNOVATION COUNCIL
Ironically, to change mindsets in our society, a top-down approach seems unavoidable. But I am clear in my mind that the Government can only stimulate and encourage you to be innovative. It is not possible to direct and drive the population to become innovative.

Earlier this year, I invited Professor Gary Hamel, a management consultant, to conduct a seminar on innovation for Ministers and top civil servants. The seminar has generated some good ideas on how we can encourage a more innovative society.

I intend to set up a National Innovation Council to push along this change in the thinking of our people. Lim Hng Kiang, who is making several innovative changes in the Health Ministry, will chair this Council.

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