Thailand: Creating New Growth Engines through Science, Technology and Innovation

Kitipong PromwongSecretary General

National Science Technology and Innovation Policy Office (STI)

Seeking a New Economic Development Model for Thailand: “Thailand 4.0”

Source: Suwit Maesinsee, 20162

Creating New Engines of Growth

3Source: Suwit Maesinsee, 2016

ประมาณการ

1.5

Phase 1

1950

Resource-Based1959

National Research Council of Thailand

NSTDA

< 0.2%

S&T Scholarship

Prog

Golden Jubilee PhD

Prog

199019911992

Thailand Sci Park

201420162016

R&D Tax Deduction

300%BIO:

Merit-Based

*

Labour-IntensiveCapital-Intensive

Phase 2 Phase 3 Phase 4

Innovation-Driven

TRF

1985 2020

Regional Sci Parks

2021

Inno Catalogue

TalentMobility

4

ST&I Policy in Industrialization Process in Thailand

Competitiveness Fund

% Gross Expenditure on R&D/GDP

*

1.0

0.5

19992000

Main Challenges

• Middle Income Trap• Inequality Trap• Imbalance Trap

5

-

5,000

10,000

15,000

20,000

25,000

30,000

1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010 2014

Yr 1970Malaysia $343Korea $289Philippines $209Thailand $200China $114

Thailand 5,997

Malaysia 10,933

High Income Nation

Philippines 2,871

China 7,617

Korea 28,166

Source: UN Statistics Division and the World Bank. Compiled by STI

$ 13,000

Per CapitaIncome (US$)

$ 2,000

Breaking Out of Middle Income Trap

6

Middle Income Nation

R&D Investment and Economic Growth

ที่มา: IMD, The World Competitiveness Yearbook 2016 และ http://data.worldbank.org/indicator

KoreaThailand

7

Source: STI, 20168

Target for Gross R&D Investment (2018)

Source: Industrial R&D and Innovation Survey (STI, 2016)

Rapid Growth of Business-Sector R&D Investment

9

Source: Industrial R&D and Innovation Survey (STI, 2016)

Sectoral Distribution of BERD 2014 (Million Baht)

Distribution of BERD in theManufacturing Subsectors

10

5+5 Target Industries: Shift 5 existing sectors towards more knowledge-based and HVA and create 5 new waves of the future

New S-curves:• Industrial Robots• Transportation and

aviation• Bio-based energy and

chemicals• Digital industry• Medical and health

industry

First S-curves:• Automobile for the

future• Intelligent electronics• High quality tourism• Agro and

biotechnology• Food for the future

Source: Ministry of Industry, 2015 11

Shifting Production Sector to Innovation-Driven

HighValue-Added

Source: Adapted from Stan Shih Smiling Curve (2005)

LowValue-Added

Marketing

Branding

Innovation

Design

Development

R&D and Innovation

Value Creation

Marketing andServices

Distribution

AssemblyManufacture

Prototype

Customer Services

12

KnowledgeIntensive

Labour/ResourceIntensive

Current Position of Thailand

From Resource-Based toward Knowledge-Based

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2533 2535 2537 2539 2541 2543 2545 2547 2549 2551 2553 2555 2557

Source: STI

Value Added (Million Baht)

Food, Agriculture & Biotechnology

Health, Wellness & Biomed

Smart Devices, Robotics & Mechatronics

Creative, Culture & High Value Services

Digital, IoT, Artificial Intelligence & Embedded Technology

13

0.0

0.5

1.0

1.5

2554 2555 2556 2557

% Gross Expenditure on R&D to GDP

Current Key Policy Measures for ST&I-Based Industrialization

Basic Research

Applied Research

Proof of Concept

Prototyping Pilot ProductionNew

BusinessAcceleration

Fully grown

Research Design, Development and Engineering Innovation and Business Development

Legislation/RegulationNew STI Law, IP Utilisation and Research Commercialization Promotion Act

Innovation Professional

Alliance of Innovation Managers: AIMs – Thailand

Tax Incentives300% Tax Exempt of R&D and Innovation Cost

Tax Exemption for Private Equity Fund and Crowd Funding

BOI privileges for R&D and Innovation Investment

Finance

Thailand Grand Challenges R&D Fund

Startup Coupon

Startup Funds

Competitiveness Fund

Innovation Coupon

Innovation MarketInnovation Catalogue

SME TechAssistant

iTAP - Technical experts to support SMEs

ST&I Infra-structure

Food Innopolis

One stop service center for metrology, standardization, testing, accreditation and certification

ST&I ManpowerTalent Mobility

Work-Based Learning

Proposal

Implementing

14

15

EZI: Economic Zones of Innovation

EEC: Eastern Economic Corridor

Major Industrial Clusters

Electronics

Automotive

Food

Petrochemicals

Rubber/Palm/Sea Food

Regional Science Parks

Kukot Station

Rangsit Station

BU

RSU

AIT

Don Muang International Airport

Future Park Rangsit

KU

20 km

Thai Market

Thailand Science ParkTU

RMUTT

RMUTT-Kaset

FDADept. of Medical Sci.

ARDA

TISTR

Food Innovation TriangleEx

pect

ed to

be

finish

ed in

201

8

Light Rail

Simummuang Market

TISTR NIMT TINT

NSM

NSTDA

@TSP

Kasetsart UniversityFood Research Cluster

BIOTECMTEC

NANOTEC NECTEC

Technopolis

16

At Thailand Science Park

Modular Design Laboratory

Ready-to-move-in 17

RDI Support

Super Cluster

Privileges

BOI &

MOST

One Stop Services

STI Infra-

structure

18

Food Innovation HubFuture

Target Group

100 Tenants:• Research

Contract Organisations

• MNCs• LEs• SMEs• Startups

Present

19

Startup Ecosystem Development

20

National Startup Promotion Program

Source: STI

LAW IMPROVEMENTReregulation and

Deregulation:Earning Stock Option,

Vesting, Convertible Debt, Preference Share

21

Current Policy and Government Support for Development of Startups

22

Development of STEM Workforce

Source: 1) Commission on Higher Education, 2) Office of the Education Council, 3) Vocational Education Commission 4) The Office of the Basic Education Commission

Shortfall in supply of high-level researchers in the near future

A need for proactive policy to address the rapid demand of industry 23

Source: Industrial R&D and Innovation Survey (STI, 2016)

Rapid Increase in Demand of R&D Personnel in Business Sector

24

• Talent mobility between public and private sectors and cross-border mobility

• Restructure of government student scholarship programs• Industrial practice school• Cross-Border Talent Mobility

Talent Mobility

Total Ph.D. Master Bachelor

Public Sector 36,749 (72%) 9,967 23,449 3,333

Private Sector 14,256 (28%) 734 3,758 9,764

Current Status of R&D personnel in Thailand

25

Entrepreneurial University

Industry Demand and Partnership

R&D Translation ApplicationDevelopment Commercialization

Publication

ManyUniversities

Education

FewUniversities

Very FewUniversities

Source: Adapted from Professor NG WUN JERN, Nanyang Technological University, 2016 26

Re-profiling University Sector

1. Deep industrial understanding and engagement (culture, competence, flexibility internal process)

2. Hands on – test it out on site: to know how the technology works, to know how to cost the technology (ability beyond research, especially engineering)

3. Commercialization capability e.g. technology licensing, spin-off, m&a, etc.

4. Industrial connection – many industrial partners

5. Government connection – not only for funding but also policy support and social contribution

27

Re-Profiling Government Research Institutes

1. Custom and market engagement including suppliers

2. Ability to act as intermediary

3. Management capability, team, elimination of silo effect

4. Practice of business report

5. Being focused – market feasibility, proof of concept, proof of value

28

Internationalization and Partnership

RUBBER, BIOFUEL,

HALAL SCIENCE

SPACE, STEM EDUCATION

VOCATIONAL EDUCATION

BIOPHARMA

BIOENERGY

BiOFUELAGRI TECH

BIOTECH, ICT,MATERIALS SCI,

NANOTECH, SPACE, RENEWABLE ENERGY,

LIFE SCIENCES, HEALTH & ENVIRONMENT

INDUSTRIAL DESIGN, RAILWAY

SPACE TECH

AGRI TECH, WATER RESOURCE

MANAGEMENT

ICT, DIGITAL MEDIA

AGRICULTURE. RAILWAY, SPACE

RUBBER, BIOFUEL,

HALAL SCIENCE

MANUFACTURING

BIO TECH, ICT,MATERIAL SCI, NANO

TECH, RENEWABLE ENERGY, LIFE SCIENCES,

HEALTH & ENVIRONMENT

ICT,DIGITAL MEDIA

FOOD & AGRI TECH HEALTH

SCIENCES, BIOENERGY

FOOD & AGRI TEC, HEALTH SCIENCES, BIOENERGY

HEALTH & MEDICINESTEM EDUCATION

HEALTH SCIENCES,STEM EDUCATION

FOOD & AGRICULTURE, HEALTH SCIENCES,

Thank You