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CRDF 1 is a grant for the commercialisation of R&D output from public and private University (PPU) / Government Research Institute (GRI) by a Spin-Off company ("Syarikat Terbitan University, STU"). A spin off company is defined as a company with local Public and Private University/Government Research Institution ownership.

Under this fund, the STU is required to operate their business from any recognised Technology Centers locally. The company is also required to focus their commercialisation activities on business development while producing their product via out-sourcing mode.