Thailand’s Science Technology and Innovation Policy

Pichet DurongkaverojSecretary 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%

Services47%

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 Statistics1.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 Baht5. 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)

5,276,439.529,869,498 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

SMEsMicro

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 &

Regulations5Source: National Economic and Social Development Board, Thailand

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100,000Wealth 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

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0%20%40%60%80%

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National Average(excluding Bangkok)=100%

Growth & Competitiveness Inclusive Growth

Green GrowthGovernment Efficiency

Source: The Government House 7

Thailand’s Strategy 2013 Strategic Issues

1. Agriculture2. Industry3. Tourism and services4. Infrastructure 5. Energy6. Regional integration7. Competitiveness

1. Education2. Public health3. Social welfare for all4. Promotion of

community enterprises and SMEs

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

measures

1. Eco-industry towns2. Reduction of GHG

emission3. Environmental fiscal

policy4. Rehabilitation of

natural resources and water resource management

5. Climate change adaptation and mitigation

1. Legal reform2. Civil service

restructuring 3. Public-sector HRD4. Tax restructuring5. Budgeting reform6. 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 & Development8.1 Raise R&D expenditure to 1% of GDP8.2 Promote talent mobility and S&T human resource development8.3 Development of regional science parksSource: National Economic and Social Development Board, Thailand 8

National Science, Technologyand Innovation Policy Committee

Minister of Agriculture

and Cooperative

s

Ministerof

Commerce

Members of the Committee

Minister of Information & Communicati

on 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 ofScience and Technology

Department of Science Service (DSS)

Office of thePermanent Secretary

Thailand Institute of Scientific and Technological Research (TISTR)

Office of Atoms

for Peace (OAP)

National Science Museum (NSM)

National Institute Of MetrologyThailand (NIMT)

Geo-Informatics andSpace 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 AgroInformatics 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

QualitySociety

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

2016-202170:30

STI Investment Targets

Source: National Science Technology and Innovation Policy Office

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

13

Top 10 Private Sector R&D Investment, 2013

Chemical3,630 mil baht

Others1,862 mil baht

Textile423 mil baht

Transport and Logistics

449 mil baht

Electronics722 mil

bahtMinerals794 mil

bahtAuto

920 mil baht

Electricity, Gas and Water Services

970 mil bahtRubber and

Plastic1,125 mil baht Machinery

1,361 mil baht

Petroleum1,553 mil baht

Food 2,375 mil baht

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

14

PrivateR&D Centers

PrivateInnovation Districts

Regional Science and Technology Parks

Systems

Physical/Institutional Infrastructures

Strategic Sectors

R&DTax

Deduction

Young Ph.D. Reverse

InternshipIncome

ContingentLoan

Researcher’s Income TaxExemption

IndustrialM.Sc./Ph.D.

Infra-structureSystem

ManpowerSystem

ResearchSystem

Mechanisms/Measures/Schemes

Key Measures to Promote Innovation

Climate Change

and Water

Fiscal/FinancialSystem

THAIST

MatchingGrants/Equity

Financing

Gov’tProcurement

/Mega-Projects

RailSystem

Hi-Value-Added

IndustriesEnergy Food

Agriculture

Source: National Science Technology and Innovation Policy Office

IP andTechnology

TransferSystem

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.

Innovation Cluster2 (INC2)

16

Thailand Science Parks Network

Thailand Science Park Headquarter of NSTDA and

4 National Researcher CentersNorthern 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 Processing2. IT Software & Digital Content3. Medical / Health Science/Biotechnology

North Eastern1. Agriculture &

Food Processing2. Hard disk drive,

Enterprise software, Embedded software

3. Mining Industries and Alternative Energy

Southern1. Food/Agriculture2. Proactive Medicine -Herb, Cosmetic

Thailand Science Park1. Auto Parts2. Organic Printed

Electronics3. Food & Feed 4. Nano-cosmeceutical

17

18

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-G9G10-G12/Voc. Cert.

High Voc. Cert./

Undergrad

Graduate Studies Labour Retiremen

t

YSTP (NSTDA)

Learning Method Enrichment/Mentoring

Specialty Schools

Class in School Scholarship Programme

Enabling System Formal Education/OthersLife-long Learning/Training

Gifted Classroom (IPST)

S&M Talent (IPST)

Technology Curriculum (IPST) Technology Teacher Curriculum (IPST)

Childhood SMT (IPST)

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

IndustryUniversity/

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

24 3

* SMEs are exempt from reimbursement through MOST subsidy

Funding Agency

University

Research Institute

Private Company

TTOin university or

research institute

Private Firm (old and new)

TAX Revenue

Market Financial Support for translational research

Proof of

concept

Prototype

Pilot Production

Mass production

Government Fund

New products, New services, New jobs,New companies

Con

ven

tion

al f

und

ing

for

basi

c an

d ap

plie

d r

esea

rch

IP Creation, Registration and Licensing

Royalty income

Very risky and costlyNeed supports and tools such as incubation,

grants, matching grants, soft loan, loan

Write-off mechanism for funding agencies

IP o

wn

ers

hip

1

3.1

4

3.2

2

20

Development of Innovation System through IP Management

Development of Innovation System through IP Management

Policy Measure1. 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 SchoolLifelong 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 2

4

• 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

Learn from CommunityPromote 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 productFertilizer

OUTPUTBiogas

INPUTCow 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

PublicPrivate Partner-

ship

TripleHelix

Meechai PattanaSchool

SBTS

OTOP

iTAP

Innovative Communities and Science Villages

Universal Health Coverage

Village Health Volunteer

34

National Science Technology and Innovation Policy Office319 ChamChuri Square Building 14th Fl., Phayathai Rd., Patumwan, Bangkok 10300, Thailand Tel: +66 2 160 5432Fax: +66 2 160 5438E-mail: info@sti.or.thhttp://www.sti.or.th

Thank you for your attention.