Thailand’s Science Technology and

Innovation Policy

Pichet Durongkaveroj

Secretary General National Science Technology and Innovation Policy Office, Thailand

Thailand at a glance

• An upper middle income and 2nd largest economy in ASEAN after Indonesia

• Total population of 69.5 million in 2012

• World’s Top 3 rice exporter

• World’s Top 5 sugar exporter

• World’s largest natural rubber producer and exporter

• World’s top chicken meat exporter

• World’s 2nd largest hard-disk drive exporter after China

• Auto manufacturing hub of Southeast Asia

Agriculture 8%

Industry 45%

Services 47%

GDP (2012): US$ 366 billion

Competitiveness ranking:

• 18th (from 185) in Ease of Doing Business 2013

• 38th (from 144) in Global Competitiveness Report 2012 - 2013 by World Economic Forum

• 30th (from 59) in IMD World Competitiveness Rankings 2012

2

Notes :2012 Statistics 1.There were 0.3% of the enterprises whose information on size was unavailable. 2.GDP of agricultural sector was included. 3.There were 2.2% of the export transactions whose information on the exporters’ size was unavailable. 4.1 USD = 31 Baht 5. LEs were included their diversification enterprises (12% GDP)

Employment (Persons)

Total

2,875,495 (10.80%)

No. of Enterprises (Enterprises)

4,614 (0.06%)

2,848,256 (35.83%)

3,432,006.16 (65.04%)

1,844,433.36 (34.96%)

GDP (Million Baht)

5,502,676 (55.75%)

3,503,340 (35.50%)

Exports (Million Baht)

5,276,439.52 9,869,498 26,635,183 7,950,410

Thailand Economic Profile

5,097,540 (64.12%)

9,129,747 (34.28%)

14,629,941 (54.93%)

863,482.05 (8.75%)

LES

SMEs Micro

Agriculture

3

Policy & Institutional Framework

Thailand’s Strategy 2013 New Growth Model

Improving internal process

Getting out of the middle-income

trap

Increasing Environ-mental

friendliness

Reducing social

disparity

Economic Growth & Competitiveness

Green Growth

Inclusive Growth

Better governance and public management

Human security, human development and quality of life

Improved infrastructure, R&D, and productivity

Streamlined Rules &

Regulations 5 Source: National Economic and Social Development Board, Thailand

0

10

20

30

40

50

60

70

80

90

100

ระยอง

สมทรสาคร

สมทรปราการ

ฉะเชงเทรา

ปราจนบร

พระนครศรอ…

ชลบร

ภเกต

สระบร

ปทมธาน

นครปฐม

พงงา

ล าพน

สราษฎรธาน

ตราด

ราชบร

กระบ

สงขลา

นนทบร

ประจวบ

ครขนธ

ตรง

นครศรธรรมร…

ชมพร

สงหบร

ก าแพงเพชร

ระนอง

ยะลา

เพชรบร

สตล

เพชรบรณ

ลพบร

จนทบร

เชยงให

ม

พษณโลก

กาญ

จนบร

ขอนแกน

สมทรสงคราม

ชยนาท

อตรดตถ

นราธวาส

ล าปาง

สพรรณบร

นครสวรรค

นครนายก

นครราชสมา

สระแกว

พทลง

นาน

อทยธาน

ปตตาน

ตาก

อางทอง

พจตร

เชยงราย

พะเยา

สโขทย

อดรธาน

เลย

มกดาห

าร

หนองคาย

นครพ

นม

แพร

กาฬ

สนธ

อบลราชธาน

ศรสะเกษ

ชยภม

มหาสารคาม

รอยเอด

ยโสธร

สรนทร

หนองบวล าภ

บรรมย

แมฮองสอน

สกลนคร

อ านาจเจรญ

Wealth Distribution by Province

National Average excluding Bangkok = 12,045 baht

GDP per Capita (1000 baht/head/month)

20 provinces are above national

average

56 provinces are below national

average

Demand –based Policy Making for Inclusiveness

Source: The Government House

Kampangpet Province

6

Benchmarking for Strategic Alignment Kampangpet Province

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

ขนาดเศรษฐกจ

การเต

บโตของเศรษฐกจ

ความมงคง

ประสทธภาพแรงงาน

ประสทธภาพท

ดน

การลงทนภาครฐ

การจางงาน

เงนเฟอ

การบรโภ

คภาคเอกชน

ความยากจน

ความเหลอมล า

หนภาคครวเรอ

น การศกษา

การสาธารณสข

ผสงอาย

สทธสตร

การคมครองคนพ

การ

การจดการภยธรรมชาต

ปรมาณขยะ

การบกรกปา

มลพษ

ทางอากาศ

พลงงานทางเล

อก

ความปลอดภย

การครอบคลมของการบรการภาครฐ

การเข

าถงน าประปา

การเข

าถงไฟ

ฟา

การคมนาคมทางถนน

การคมนาคมทางราง

การเข

าถงเค

รอขายโทรศพ

ทมอถอ

การเข

าถงอนเตอรเน

ต ความผกพน

ตอองคกรของขาราชการ

คณ

ภาพของการบรการประชาชน

ประสทธภาพของระบบ

ราชการ

ประสทธภาพการจดเกบภ

าษ

ก าแพงเพชร คาเฉลยกลมจงหวด

National Average

(excluding

Bangkok)

=100%

Growth & Competitiveness Inclusive Growth

Green Growth Government Efficiency

Source: The Government House 7

Thailand’s Strategy 2013 Strategic Issues

1. Agriculture 2. Industry 3. Tourism and services 4. Infrastructure 5. Energy 6. Regional integration 7. Competitiveness

1. Education 2. Public health 3. Social welfare for all 4. Promotion of

community enterprises

and SMEs 5. Labor protection 6. Social justice 7. Anti-corruption

measures

1. Eco-industry towns 2. Reduction of GHG

emission

3. Environmental fiscal

policy 4. Rehabilitation of

natural resources and

water resource

management 5. Climate change

adaptation and

mitigation

1. Legal reform 2. Civil service

restructuring 3. Public-sector HRD 4. Tax restructuring 5. Budgeting reform 6. Government asset

utilization 7. Peace & security in

the southern border

provinces 8. Political reform

ECONOMIC

GROWTH &

COMPETITIVENESS

INCLUSIVE

GROWTH GREEN

GROWTH INTERNAL

PROCESS

8. Research & Development 8.1 Raise R&D expenditure to 1% of GDP 8.2 Promote talent mobility and S&T human resource development 8.3 Development of regional science parks

Source: National Economic and Social Development Board, Thailand 8

National Science, Technology and Innovation Policy Committee

Minister of Agriculture

and Cooperatives

Minister of

Commerce

Members of the Committee

Minister of Information &

Communication Technology

Minister of

Education

Minister of Public Health

Chairman, National Research Council Executive

Board

11 independent experts

Secretary (Permanent Secretary for Science and Technology)

Assistant Secretary (Secretary-General

of STI)

Minister of Science and Technology

Minister of

Industry

Chair

Vice-Chair

Prime Minister

9

10

Agencies under Ministry of Science and Technology

Office of the Minister

National Science and Technology Development Agency (NSTDA)

National Synchrotron Research Center (NSRC)

Ministry of Science and Technology

Department of Science Service (DSS)

Office of the Permanent Secretary

Thailand Institute of Scientific and Technological Research (TISTR)

Office of Atoms for Peace (OAP)

National Science Museum (NSM)

National Institute Of Metrology Thailand (NIMT)

Geo-Informatics and Space Technology Development Agency (GISTDA)

National Innovation Agency (NIA)

National Astronomical Research Institute of Thailand (NARIT)

Thailand Institute of Nuclear Technology (TINT)

National Science Technology and Innovation Policy Office (STI)

Hydro and Agro Informatics Institute (HAII)

Thailand Center of Excellence for Life Sciences (TCELS)

The National Science Technology and Innovation Policy and Plan 2012 - 2021

• Provide national direction for the next 10 years with periodic adjustments

• Identify Focuses and Balance between Economic and Social Development and Context for Thailand

• Preparedness for Future Changes that will have major impacts to Thai Society

• Plan derived from Intensive and Widespread Public & Stakeholders Participatory Process with Implementation Strategies Incorporated

• First Time “INNOVATION” is systematically introduced

• Address STI for development and development of STI

Source: National Science Technology and Innovation Policy Office, Thailand

STI

Regionalism (ASEAN+)

Green Innovation

Energy & Environment

Demographic & Social Changes

Quality Society

Sustainable Economy

Competition & Economic Integration

Ageing Society Decentralization

Energy Security

Climate Change

Natural Resource Management

Technological Changes

Creativity Platform

Eco Production & Services

Social & Cultural Mobilization

11

The National Science Technology and Innovation Policy and Plan 2012 - 2021

Source: National Science Technology and Innovation Policy Office, Thailand

5 Strategic Action Agenda

2.Enhancing Economic Competitiveness and

Flexibility

1.Empowering Society and Local Communities

5.Promoting and Supporting the Development of STI Infrastructure and Enabling Factors

4.Developing and Enhancing STI Human Capital

3.Ensuring Energy, Resource and

Environment Security

Green Innovation for Quality Society and Sustainable

Economic Growth

Rice and

Rice Products

Bio-based Energy

Rubber and

Rubber Products

Processed Food

Electrical and

Electronics

Automotive & Parts

Plastics & Petro -

chemicals

Fashion (Textiles, Jewelry, Leather)

Value-added

Tourism

Logistics and Rails

Construc-tions and Related Services

Creative &Digital Contents

Sustainable Economy

12 Target Economic Sectors

Quality Society

12

2012

R&D /GDP = 0.24 % R&D Personnel (FTE)

9.01 : 10,000

R&D expenditure (Private : Government)

38 : 62

2021: 2% 2016: 1%

(2021) 25:10,000 (2016) 15:10,000

2016-2021 70:30

STI Investment Targets

Source: National Science Technology and Innovation Policy Office

Thailand Status in 2012 R&D Exp = 21,493 MB R&D Exp : Gov : Private =13,318:8,175 MB R&D Personnel = 57,220 (man-year)

13

Top 10 Private Sector R&D Investment, 2013

Chemical 3,630 mil baht

Others 1,862 mil baht

Textile 423 mil baht

Transport and Logistics

449 mil baht

Electronics 722 mil baht

Minerals 794 mil baht

Auto 920 mil baht

Electricity, Gas and Water Services 970 mil baht

Rubber and Plastic 1,125 mil baht Machinery

1,361 mil baht

Petroleum 1,553 mil baht

Food 2,375 mil baht

Source: R&D Survey, National Science Technology and Innovation Policy Office, 2013

14

Private R&D Centers

Private Innovation Districts

Regional Science and Technology Parks

Systems

Physical/ Institutional Infrastructures

Strategic Sectors

R&D Tax

Deduction

Young Ph.D. Reverse

Internship Income

Contingent Loan

Researcher’s Income Tax Exemption

Industrial M.Sc./Ph.D.

Infra- structure System

Manpower System

Research System

Mechanisms/ Measures/ Schemes

Key Measures to Promote Innovation

Climate Change

and Water

Fiscal/ Financial System

THAIST

Matching Grants/ Equity

Financing

Gov’t Procurement

/Mega- Projects

Rail System

Hi-Value- Added

Industries Energy

Food Agriculture

Source: National Science Technology and Innovation Policy Office

IP and Technology

Transfer System

Phase II: accelerating industry competitiveness through S&T (end of 2013 onwards) • Prioritized on 2 Innovation Clusters: Food and Automotive Parts, • Approx. 5,000 public & private personnels, • Est. 200 tenant companies. Phase III: inducing knowledge-based economy in the surrounding area.

Thailand Science Park : Accelerating Innovation

3 Development Phases:

Phase I: creating critical mass on R&D

activities and S&T services (2002-2013)

• Over 3,000 public & private personnels,

• Approx. 9% of Thailand R&D spending,

• 60+ tenant companies, 1/3 are internationals.

16

Thailand Science Parks Network

Thailand Science Park Headquarter of NSTDA and

4 National Researcher Centers Northern Science Park:

(1) Chiang Mai University (2) Maejo University (3) Naresuan University (4) Mae Fah Luang University

North Eastern Science Park: (1) Khon Kaen University (2) Suranaree University of

Technology (3) Maha Sarakham University (4) Ubon Ratchathani University

Southern Science Park: (1) Prince of Songkla University (2) Walailak University

Eastern Science Park (in the-set-up) (1) GISTDA (2) Burapha University

Northern 1. Agriculture & Food Processing 2. IT Software & Digital Content 3. Medical / Health Science/Biotechnology

North Eastern 1. Agriculture & Food

Processing 2. Hard disk drive,

Enterprise software, Embedded software

3. Mining Industries and Alternative Energy

Southern 1. Food/Agriculture 2. Proactive Medicine -Herb, Cosmetic

Thailand Science Park 1. Auto Parts 2. Organic Printed

Electronics 3. Food & Feed 4. Nano-cosmeceutical

17

Little Scientist House (HRH Sirindhorn Foundation, OBEC, NSTDA, IPST., NSM., Nanmee)

EBL (IPST)

Brain-based

Learning (OKMD)

EBL (IPST)

Science Classroom (OBEC/IPST/MOST

/POSN)

Olympiad (OBEC, IPST., POSN.)

DPST (IPST)

Chulabhorn

MWIT

SBTS (OVEC)

WiL

WiL (OHEC, STI,

KMUTNB, KMUTT, OVEC)

RGI., RRI. (TRF)

PSMT (IPST)

ODOS (MoE)

JSTP (NSTDA)

Coaching (TYSA)

THAIST (STI)

TGIST (NSTDA)

Co-STRD

(MOST)

KNIT

- STOU - NFE - On the job training - Promotion tie in with mastery - Commercial Package Training - Employer Approval

Talent Mobility (STI)

Training (OKMD) Graduate

Program (TISTR+Uni)

Science Scholars (MOST, OHEC)

UBI (OHEC) Children’s University

(NSTDA)

SCiUS (MOST)

STEM Education

Kindergarten G1-G6 G7-G9 G10-

G12/Voc. Cert.

High Voc. Cert./

Undergrad

Graduate Studies

Labour Retirement

YSTP (NSTDA)

Learning Method Enrichment/Mentoring Specialty Schools Class in School Scholarship Programme

Enabling System Formal Education/Others Life-long Learning/Training

Gifted Classroom

(IPST)

S&M Talent (IPST)

Technology Curriculum (IPST) Technology Teacher Curriculum (IPST)

Childhood SMT (IPST)

18

STI HR Development Programmes

18

To facilitate the mobility of researchers in governmental agencies and higher education institutions to industrial sector.

Talent Mobility Programme

19

Government

Industry University/

Research Institution

Industry reimburses university*

Tax incentives • BOI STI-tax • MoL 200% corp. tax • RD 200% corp. tax

Talent Mobility Committee • Project certification • Promotion/support STI Office coordinating roles: • Demand-Supply database keeping • Pushing for enabling regulations • Matching events

The Cabinet approved talent mobility to be a key performance indicator of universities and research institutions

Regulation reforms needed to encourage mobility • Continuing tenure • Academic promotion

1

2 4 3

* SMEs are exempt from reimbursement through MOST subsidy

Funding Agency

University

Research Institute

Private Company

TTO in university or

research institute

Private Firm (old and new)

TAX Revenue

Market

Financial Support for translational research

Proof of concept

Proto type

Pilot Produc

tion

Mass production

Government Fund

New products, New services, New jobs, New companies

Con

ven

tion

al

fun

din

g f

or

ba

sic a

nd

ap

pli

ed r

esea

rch

IP Creation, Registration and Licensing

Royalty income

Very risky and costly Need supports and tools such as incubation,

grants, matching grants, soft loan, loan

Write-off mechanism for funding agencies

IP o

wners

hip

1

3.1

4

3.2

2

20

Development of Innovation System through IP Management

Development of Innovation System through IP Management

Policy Measure

1. Clear Policy on Gov.

funded IP Ownership

Funding recipient, who proves to have TT

capability, is entitled to retain IP ownership of

the government sponsored research results .

2. Reform of IP

Registration System

Department of Intellectual Property (DIP) is

entitled to retain IP registration fees as well as

to have greater management flexibilities to

overcome its backlogs and improve the overall

registration system

3. Financial and tax

incentive to promote IP

Commercialization

3.1 Financial support for SMEs in the form of grant

or matching funds for scaling up of R&D

commercialization (From Lab to Market)

3.2 Tax benefit for the company’s expense on

royalty fees paid for University’s IP licenses.

4. Strengthening TT

organizations and

professionals

• Setting up a TTO Consortium and giving them enough resources to build technology transfer capabilities for TTO personnel 21

Different Dimensions of Innovation in Thailand

• Education • Community Development • Healthcare System

Dragon Bridge

• 3 main focuses: Education, Development, and Social Enterprise.

• Tuition fee is paid by doing good deeds to the communities 400 hours and planting 400 trees

• Students are parts of all committees: procurement, school management, teacher selection & evaluation, etc.

• School is off during rice growing season to help the family

• Students learn IT/computer at school and teach others.

• Collaborating with people in the community in establishing co-business.

Source: Meechai Viravaidya Foundation

Mechai Pattana School Lifelong Education & Development Center for all

Education

Bamboo Dome Buffalo Gate

23

• SBTS is national vocational

schools for gifted and

talented students who have

developed skills in invention

and technology.

• Project-Based approach

• The aim is to develop

students to become the

technologist or innovator in

the future.

Science-based Technology Schools: SBTS

Education

Suranaree Technical College, (Science Based Industrial Technology)

Phang-nga Technical College, (Innovation in Tourism)

Lamphun College of Agricuture and Technology, (Agricultural Biotechnology)

Singburi Vocational College,(Food Technology) Science Based

Technology Vocational College (Chonburi), (Science Based Industrial Technology)

Source: National Science Technology and Innovation Policy Office 24

• A nationwide sustainable

development initiative launched

by the Thai government in 2001.

• It aims to promote the unique

products made by local

communities, by utilizing their

indigenous skills and

craftsmanship combined with

available natural resources and

raw materials.

One Tambon One Product: OTOP

Community Development

Source: Community Development Department , Ministry of Interior 25

Industrial Technology Assistance Program: iTAP

Investigate technological

problem

Matching supply of & demand for

technology

Technological consultancy service

Joint R&D

S&T Acquisition Program (Local & Overseas)

Training/ Workshop

Attach local expert to overseas expert, help technology transfer

to firms and universities

Funding subsidies

50:50

• More than 3,000

technology development& innovation projects since 2006

• 10 regional nodes linking with local universities and science parks with 50 project managers

26 Source: iTAP, NSTDA

Community Development

• Initiated by the Ministry of

Science and Technology

• More than 200

communities/villages across the

countries

• R&D and Technology Transfer

Program for Community & Local

Development

Innovative Communities and Science Villages

Community Development

Source: Ministry of Science and Technology

27

Source: R&D and Technology Transfer Cluster for Local Community Development and Underprivileged, NSTDA

Objective: To promote and support the reinforcement

of scientific and technological skills especially information technology skills of instructors and secondary students

Role: 1) Develop HR 2) Create Jobs 3) Promote Collaboration

Examples of Activities:

Mae Hong Son IT Valley

Organization: University - KMUTT Research Institute – NSTDA (BIOTEC NECTEC)

e-Learning System

WIMAX

Thai-Japan

Install WiMAX (wireless communications) in order to promote long distance learning

Learn Square is Opensource e-learning Management System Organize training workshops on Learning Media for teachers.

On-line Program for Cultural Exchange between Thailand and Japan

28

• Strawberry - $10,000 / year / 10 people • Tomato - $333 / year • Macademia - $5,000 / year

Organization •2nd Army •NSTDA •KMUTT •KKU •NU •Etc.

Agriculture and Food @ Community Level, Loei

Technology Transfer GHP Training

Promote Community Enterprise

Learning Center for Children

• Revolving Fund from Selling Products $43,333 / year • Dividend $1,000/year/family • Create Jobs $333/year

Income $2,000 / year

Create jobs and Promote farmers’

learning

Promote children’s learning

Promote Science Learning from Local Careers

Source: R&D and Technology Transfer Cluster for Local Community Development and Underprivileged, NSTDA

•Science Camp 4 times/year (250 participants) 29

By product Fertilizer

OUTPUT Biogas

INPUT Cow feces, Organic waste

Biogas Digester

Storage

Cost reduction: 8000 Baht (270$) 3000 Baht (100 $)

From Agriculture Waste to Energy at KHAONOI VILLAGE, PHITSANULOK

• National Health Security Act 2002

• Universal health care is provided

through three programs:

1. Civil service welfare system for

civil servants and their families

2. Social Security for private

employees

3. Universal Health Coverage to all

other Thai nationals.

• Expand health protection coverage

to 99.5% of the population

Universal Health Coverage

Healthcare System

Source: Ministry of Health

31

• Volunteers from the local communities

• Promote health awareness in the community

• Use of tablet computers to collect health information of the villagers

Village Health Volunteer

Healthcare System

Source: Ministry of Health 32

Central Government

Decentralization for Inclusiveness

Regional Administration

Local

Administration

Province District

Ministry Bureau Department

Source: Ministry of Interior

Infrastructure Development Public Services Healthcare Promotion Safety and Security Investment Promotion Management of Natural Resources and Environment

33

Institutional Framework Approaches for Inclusive Innovation

Program Top down

Bottom up

Social Enterprise

Public Private

Partner- ship

Triple Helix

Meechai Pattana School

SBTS

OTOP

iTAP

Innovative Communities and Science Villages

Universal Health Coverage

Village Health Volunteer

34

National Science Technology and Innovation Policy Office 319 ChamChuri Square Building 14th Fl., Phayathai Rd., Patumwan, Bangkok 10300, Thailand Tel: +66 2 160 5432 Fax: +66 2 160 5438 E-mail: info@sti.or.th http://www.sti.or.th

Thank you for your attention.