Malta Digital Innovation Authority CEO Kenneth Brincat answers some questions about one of the country's newest regulatory authorities.
What context does the MDIA operate in?
Government has helped to create a strong digital innovation ecosystem in recent years by creating a variety of tools that assist the technology industry to be the best it can be. Within that, the MDIA – which was set up to mark the beginning of the government’s digital innovation programme – has also made several significant accomplishments.
Malta has always been receptive to technology innovation, and in fact, it is renowned for providing excellence in its public services, conducting cutting-edge research, and cultivating a vibrant knowledge-based community. It is the responsibility of the MDIA to closely follow and react to the evolution of the European innovation ecosystem, as well as update its policy and industry support instruments accordingly. The Sandbox, launched by MDIA, is a great example of this, as it offers an instrument by which one can experiment with disruptive technology concepts within a regulatory framework.
What is digital innovation?
The world is changing at breakneck speed; entire industries are disappearing while others seem to sprout out of nowhere to take their place. In our global market, existing manufacturing industries cannot afford to stagnate or refrain from developing new production lines, innovative products and pioneering technologies because it will severely hamper their market’s ability to compete. So, to sustain a competitive advantage, every market must be encouraged to constantly engage in disruptive technologies, as well as innovative digital products and technologies. This will enable them to construct the competitive anchors that will serve their market’s well into the future.
With this in mind, the never-ending search for new solutions to cater to the needs emerging from markets, as well as the development of these solutions, truly embodies digital innovation. This is defined by an ability to provide a better or more appropriate response to existing needs, as well as to identify efficient, new and effective methodologies to serve the markets for which a new digital product can be developed. Put simply, digital innovation generates added value that is useful to consumers, while also serving as a route for economic development for the companies that make use of them.
Why does Malta need a government authority to promote digital innovation?
In today’s economy, innovation is critical for achieving financial growth and long-term prosperity.
When compared to the overall benefit to the market, the characteristics of research and development operations – such as technological spill-over and a high level of risk – result in a lower financial advantage to the investing business entity. A consequence of this may be that private investment in research and development is less significant than what the market deems to be an optimal amount of expenditure. So, in order to overcome these market flaws and reduce the risk faced by the corporations, the Government must intervene to ‘compensate’ them and encourage their investment in the necessary research and development efforts.
Investors and big corporations from across the globe – and including those at the forefront of international technology – are drawn to the growing technological entrepreneurial activity in Malta
What position is Malta’s innovation eco-system in?
Malta’s innovation and technology industry has established a strong presence on the international stage by making breakthroughs in numerous markets, including communication technology (communications), esports (video gaming), gaming (video gaming), fintech (financial technology), and others. In fact, Malta ranks 27th among the 132 economies featured on the Global Innovation Index 2021. Our island’s high-quality human capital, entrepreneurial culture, and fearless innovation attitude – together with the Government’s commitment to supporting breakthrough inventive activities – place us at the forefront of technology entrepreneurship around the world.
Is technological entrepreneurship thriving in Malta?
Investors and big corporations from across the globe – and including those at the forefront of international technology – are drawn to the growing technological entrepreneurial activity in Malta. There are many recent local success stories of entrepreneurs who earned a substantial exit, as well as entrepreneurs who built large and leading firms on the basis of creative technology development. There’s no doubt that Maltese entrepreneurs are renowned for their innovation, high levels of talent, daring, and ability to think across disciplines – so, yes, I would say that it is thriving.
How is the Government assisting further digital innovation?
The assistance provided by the government for technical innovation has substantially impacted the growth and prosperity of Malta’s innovation ecosystem. It has, in fact, been encouraging technology entrepreneurship and investment for the past decade, through a variety of successful programmes. Today, it continues to do so even more aggressively through the MDIA, and the results speak for themselves. A few key examples come to mind, including the AI Research Grant, the Pathfinder Scholarship, the Innovative Technologies in Response to COVID-19 Award, and others. New programmes are also being prepared at the moment, so that the Government can continue to assist entrepreneurs to innovate through technology and digital transformation.
Would you say the innovation ecosystem is complete and highly connected?
A substantial contribution is made by each of the above-mentioned supporters to the advancement of Malta’s position as a world leader in the fields of innovation and technology entrepreneurship. However, the combination of these elements into a coherent and well-connected ecosystem is probably at the crux of our success story. It is what allows the Maltese innovation system to continue to develop.