Science, Technology and Innovation Minister Datuk Dr Maximus Ongkili said the foundation would be launched by Prime Minister Datuk Seri Abdullah Ahmad Badawi on Monday.
"This new government initiative to encourage innovation at the grassroots level through the setting up of the Malaysian Innovation Foundation was recently approved by the Cabinet," Ongkili said after the National Innovation Award ceremony here Saturday.
"It is an NGO (non-government body) driven by the government and partly sponsored by the private sector," he said.
The foundation is responsible for cultivating innovation through awareness and promotion programmes at the grassroots level, Ongkili said.
He said innovation has been identified as important for a country to maintain its competitiveness and in connection with this, there was a need to develop individuals who could think analytically, creatively and innovatively.