Science, Technology and Innovation Policy Review: Thailand

UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT

Science, Technology & Innovation Policy Review

Thailand UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT

Science, Technology & Innovation Policy Review

Thailand

New York and Geneva, 2015 ii SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

NOTE

The designations employed and the presentation of the material do not imply the expression of any opinion on the part of the United Nations concerning the legal status of any country, territory, city or area, or of authorities or concerning the delimitation of its frontiers or boundaries. Material in this publication may be freely quoted or reprinted, but acknowledgement is requested, together with a copy of the publication containing the quotation or reprint to be sent to the UNCTAD secretariat. This publication has been edited externally.

Symbols used in some of the tables denote the following: Two dots (..) indicate that data are not available or are not separately reported. 8VH RI D GDVK t EHWZHHQ GDWHV UHSUHVHQWLQJ \HDUV HJ t VLJQLƄHV WKH IXOO SHULRG LQYROYHG including the beginning and end years. Reference to “dollars” ($) means United States dollars, unless otherwise indicated. Details and percentages in tables do not necessarily add to totals because of rounding.

PREFACE

The Science, Technology and Innovation Policy (STIP) Reviews prepared by UNCTAD aim to contribute to the GHYHORSPHQWRIQDWLRQDOFDSDFLWLHVLQWKLVƄHOGLQRUGHUWKDWQDWLRQDO67,SODQVDQGSURJUDPPHVEHWWHUFRQWULEXWH to development strategies and to improve the competitiveness of the productive sectors. These reviews are intended to serve as an analytical instrument which examines a set of proposals from an external and neutral perspective, and to make some suggestions for action. They are not a rating mechanism. The STIP Review of Thailand has three fundamental goals: to offer an up-to-date assessment of the framework conditions and interactions that characterize Thailand’s national innovation system; to provide a number of recommendations for strengthening policies and measures in order to improve national technological capabilities and encourage innovation; and to offer more detailed assessments in two areas critical for Thailand’s development, namely supporting innovation in small-scale agriculture and promoting the development of human resources in STI. The STIP Review of Thailand was conducted in response to a request by the Government of Thailand, and received the support of the Ministry of Science and Technology and of the National Science, Technology and ,QQRYDWLRQ3ROLF\2IƄFH,WZDVXQGHUWDNHQE\DWHDPRIH[SHUWVZKLFKFDUULHGRXWWZRPLVVLRQVLQ7KDLODQGLQ October 2013 and June 2014. It involved more than 70 interviews with representatives of government bodies, research institutions, universities, professional associations and chambers of commerce, business incubators and WHFKQRORJ\OLFHQVLQJRIƄFHVFRPSDQLHVDQGQRQJRYHUQPHQWDORUJDQL]DWLRQV$QLQLWLDOGUDIWRIWKLVGRFXPHQW was discussed with more than 80 experts and national stakeholders at a workshop held in Bangkok on 12 December 2014. The comments and suggestions made there have been taken into account in the preparation RIWKHƄQDOGUDIW This Review would not have been possible without the cooperation of the National Science, Technology and ,QQRYDWLRQ3ROLF\2IƄFHDQGLQSDUWLFXODU+(3LFKHW'XURQJNDYHURM 6HFUHWDU\*HQHUDODQGVLQFH$XJXVW Minister of Science and Technology) and Kanchana Wanichkorn (Director of the Department of International Affairs and national focal person for this Review). A special thanks is owed to Puangrat Asavapisit, Sakarindr Bhumiratana, Naksitte Coovattanachai, Krisda Monthienvichienchai, Thanin Pa-Em, Damri Sukhotanang, Chachanat Thebtaranont, Orapong Thien-Ngern and Kan Trakulhoon, members of the National STIP Review 6WHHULQJ &RPPLWWHH WKDW SURYLGHG JXLGDQFH WR WKLV SURMHFW $ VSHFLDO WKDQNV LV DOVR RZHG WR 3RQJWKHS Akratanakul, Panee Boonyagukul, Nakorn Chantasorn, Akarawit Kanchana-opas, Thaweesak Koanantakool, &KHQ 1DPFKDLVLUL .LWLSRQJ 3URPZRQJ 3LQLWL 5DWDQDQXNXO 6DRZDUXM 5DWWDQDNKDPIX 0RUDNRW 7DQWLFKDURHQ Carmela Torres and Chaicharn Wongsamun, who also provided substantive inputs and comments to the review. Gratitude is also extended to all participants in the national workshop and to the persons and entities, too numerous to be listed, that generously contributed their comments and ideas. The assessments, opinions and conclusions expressed in this document are entirely those of the UNCTAD secretariat. iv SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

ACKNOWLEDGEMENTS

This STIP Review was prepared under the overall direction of Anne Miroux, Director of the Technology and Logistics Division of UNCTAD, and under the direct supervision of Ángel González Sanz, Chief of the Policy Review Section (UNCTAD). Marta Pérez Cusó (UNCTAD) has coordinated the Review. Jean-Eric Aubert and Kathryn Stokes contributed two background reports, on the national system of innovation and on the agricultural LQQRYDWLRQV\VWHPUHVSHFWLYHO\7KDQDSKRO9LUDVDSDUWLFLSDWHGLQWKHƄUVWƄHOGPLVVLRQ0LFKDHO/LP 81&7$' provided valuable comments throughout the review process. 7KHPDQXVFULSWZDVFRS\HGLWHGH[WHUQDOO\E\3UDYHHQ%KDOODDQGW\SHVHWE\6WÆSKDQH3RU]L1DGÅJH+DGMHPLDQ designed the cover. CONTENTS v

CONTENTS

Note ...... ii Preface ...... iii Acknowledgements ...... iv Abbreviations ...... ix Executive summary ...... xi CHAPTER I GENERAL CONTEXT OF SCIENCE, TECHNOLOGY AND INNOVATION IN THAILAND ...... 1 A. Key socio-economic trends ...... 2 B. Science, technology and innovation performance in Thailand ...... 7 1. STI inputs ...... 7 2. STI outputs...... 9 2YHUYLHZRIƄUPVpLQQRYDWLRQDFWLYLWLHV ...... 11 CHAPTER II THAILAND’S INNOVATION SYSTEM: CRITICAL OBSERVATIONS AND POLICY RECOMMENDATIONS ...... 17 A. The rationale for fostering innovation ...... 18 B. The innovation climate: Trends and issues ...... 19 1. Framework conditions ...... 19 2. The productive sector ...... 20 3. Public research and technology organizations ...... 22 4. Educational and training establishments ...... 24 5. Intermediary organizations ...... 25 C. Government policies: Initiatives and shortcomings ...... 26 1. Institutional arrangements and national STI plans ...... 26 2. Governance issues ...... 27 3. Innovation promotion schemes ...... 29 4. Tax Incentives...... 30 5. R&D programmes...... 30 6. Science parks...... 32 +XPDQUHVRXUFHVHGXFDWLRQDQGFXOWXUH ...... 32 8. Patents and licences ...... 33 9. Conclusions ...... 34 D. Policy recommendations: Ten strategic thrusts for change ...... 34 1. Moving leaders and institutions out of their comfort zone ...... 34 2. Mobilizing stakeholders for common goals and aspirations ...... 35 %DODQFLQJVRFLDOHQYLURQPHQWDODQGHFRQRPLFREMHFWLYHV ...... 36 4. Strengthening STI governance and management ...... 36 5. Improving resource management ...... 38 6. Linking innovation actors ...... 39 7. Supporting decentralization ...... 40 vi SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

8. Expanding international connections ...... 41 7DNLQJDGYDQWDJHRIPHJDSURMHFWV ...... 41 10. Prioritizing the agenda: Short-term perspectives and long-term developments ...... 42 Annex 1. Organizational structure of the science, technology and innovation policy system of Thailand ...... 47 $QQH[ ([FHUSWIURPWKH1DWLRQDO67,3ROLF\DQG3ODQ Ÿ ...... 48 CHAPTER III SMALLHOLDER FARMING IN THAILAND’S AGRICULTURAL INNOVATION SYSTEM ...... 51 A. Introduction ...... 52 B. Overview of agricultural production ...... 53 C. The policy environment ...... 56 1. National development policy...... 57 2. Agricultural policy ...... 57 3. Energy policy ...... 58 4. Environmental policy...... 58 5. STI policies...... 58 6. Strengthening policies to promote innovation in agriculture ...... 59 D. The agricultural innovation system ...... 60 1. Farmers and farmers’ organizations ...... 60 0DMRUVRXUFHVRIQHZNQRZOHGJHDQGLQIRUPDWLRQIRUVPDOOVFDOHIDUPHUV ...... 61 3. Key issues for policy ...... 66 E. Recommendations ...... 66 1. Policy recommendations ...... 66 2. Policy research needs ...... 67 CHAPTER IV ENHANCING THE AVAILABILITY AND QUALITY OF HUMAN RESOURCES IN STI ...... 71 A. The context of STI-related human resource development...... 72 1. Key education trends ...... 72 2. Overview of the education system ...... 74 3. Education policy...... 75 B. STI-related human resources development in Thailand: Key issues ...... 79 1. Developing human resources in STI to keep pace with an increasingly sophisticated economy...... 79 2. Enhancing the overall quality of STI education and training ...... 83 3. Fostering effective linkages between universities/research institutions and industry ...... 84 /HYHUDJLQJPRUH+5'DQGWHFKQRORJ\WUDQVIHUIURP71&V ...... 88 0D[LPL]LQJLQWHUQDWLRQDODQGUHJLRQDOFROODERUDWLRQDQGPRELOLW\IRU+5' ...... 88 C. Conclusions and recommendations ...... 89 References ...... 95 CONTENTS vii

Boxes

%XLOGLQJWHFKQRORJLFDODQGLQQRYDWLYHFDSDELOLWLHVZLWKLQƄUPV7KHFDVHRIWKH,QGXVWULDO Technology Research Institute (ITRI), Taiwan Province of China ...... 24 2.2 King Mongkut’s University of Technology Thonburi (KMUTT) ...... 25 7KH+DUG'LVN'ULYH,QVWLWXWH...... 26 2.4 Finland’s innovation policy: Key features ...... 29 2.5 Centex Shrimp: An example of effective R&D collaboration ...... 31 2.6 Comprehensive support for the development of the bioplastics industry in Thailand ...... 31 2.7 Ongoing discussions for reform of STI in Thailand ...... 35 2.8 Basic principles to guide STI policy design, governance and evaluation in Thailand ...... 36 +RZ6UL/DQNDpVSXEOLFSURFXUHPHQWHIIHFWLYHO\H[SDQGHGWKHGRPHVWLFLQIRUPDWLRQ technology (IT) services sector...... 38 2.10 Promoting regional STI policies and programmes: The case of Peru ...... 41 2.11 Recommendations: Strategic thrusts and suggested actions ...... 43 3ULYDWHVHFWRULQLWLDWLYHVWRDGGUHVVVKRUWDJHVRIPDQDJHPHQWWHFKQLFDODQGVFLHQWLƄFVNLOOV 75 4.2 National policies that include support to STI-related human resources development ...... 76 4.3 STI-related scholarships provided by Thai public agencies ...... 78 +XPDQUHVRXUFHVGHYHORSPHQWIRUWKHUDLOZD\V\VWHPPHJDSURMHFW$GGUHVVLQJWKHFKDOOHQJH ... 81 4.5 The Mechai Pattana School (Bamboo School) ...... 82 4.6. Engineering Practice Schools at KMUTT...... 84 4.7. Thai initiatives aimed at promoting the mobility of researchers ...... 85 4.8 Business incubation in knowledge institutions ...... 86 4.9 The challenge of commercializing university research ...... 87

List of box tables

(VWLPDWHVRIKXPDQUHVRXUFHVUHTXLUHGIRUWKHUDLOZD\SURMHFW ...... p .81 7HFKQRORJ\OLFHQVLQJRIƄFHVLQ7KDLODQG ...... p. 87

Tables

.H\HFRQRPLFLQGLFDWRUVŸ ...... 3 1.2 Relative level and impact of published research, selected Asian countries, 2013 ...... 9 2.1 Innovation performance according to the Global Innovation Index 2014, selected Asian countries ...... 19 3HUFHQWDJHRILQQRYDWLYHƄUPVLQPDQXIDFWXULQJDQGVHUYLFHVŸ ...... 21 2.3 Main public research and technology organizations ...... 22 6WUDWHJLFREMHFWLYHVRIWKH1DWLRQDO67,3ROLF\DQG3ODQŸ ...... 27 0DLQJRYHUQPHQWERGLHVLQFKDUJHRIƄQDQFLQJ5 'LQ7KDLODQG ...... 28 $UHDVRISUREOHPVRLODQGDYHUDJHDQQXDOUHKDELOLWDWHGDUHDVŸ...... 55 3.2 Average rate of chemical fertilizer application by region, 2003 and 2008 ...... 55 4.1 Number of institutions, teachers and students at each educational level, 2012 ...... 72 4.2 PISA results of student performance in mathematics, reading and science, selected Asian countries, 2012 ...... 73 5 'SHUVRQQHO7KDLODQGŸ ...... 80 viii SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

Figures

7KDLODQGpVUHDO*'3JURZWKUDWHŸ SHUFHQWDJH ...... 2 7UHQGVLQ*'3DQGODERXUSURGXFWLYLW\JURZWK7KDLODQGŸ ...... 4 7RWDOIDFWRUSURGXFWLYLW\JURZWK7KDLODQGŸ...... 4 *'3SHUFDSLWDRIVHOHFWHGFRXQWULHVŸ...... 5 1.5 Gross provincial product per capita, Bangkok and the regions, 2011 ...... 6 1.6 Gross expenditure on R&D, selected Asian countries, various years ...... 7 1.7 Public and private investment in R&D, selected Asian countries, various years ...... 7 /DERXUIRUFHHPSOR\HGLQ6 7LQ7KDLODQGŸ...... 8 1.9 Proportion of R&D personnel in different sectors, selected Asian countries, various years ...... 8 1.10 Disparities in ICT access and use in Thailand, 2011 ...... 9 1.11 Intellectual property indicators, 2013 ...... 10 (YROXWLRQRIWKHWHFKQRORJLFDOFRQWHQWRI7KDLODQGpVH[SRUWVŸ ...... 10 7HFKQRORJ\EDODQFHRISD\PHQWVŸ PLOOLRQVRIEDKW ...... 11 1.14 Propensity to conduct quality activities, adapt or acquire technology and design new products or processes...... 11 )LUPVFRQGXFWLQJLQKRXVH5 'DQGRXWVRXUFLQJ5 'E\ƄUPVL]H ...... 12 ,QQRYDWLRQLQJRRGVDQGVHUYLFHVFRPSDUHGE\VL]HRIƄUP ...... 12 7\SHVDQGH[WHQWRIFROODERUDWLRQRIƄUPVZLWKXQLYHUVLWLHVDQGSXEOLFUHVHDUFKLQVWLWXWLRQV ... 13 3XEOLFVHUYLFHVDQGLQFHQWLYHVXVHGE\SULYDWHƄUPV ...... 14 2.1 Thailand’s long-term development strategy ...... 18 2.2 Thailand’s National Science, Technology and Innovation Policy Committee ...... 26 3.1 Percentage of total agricultural land by region, 2009 ...... 53 3.2 Agricultural land use by crop type and region, 2009 ...... 54 3.3 Key policy areas for agricultural innovation...... 56 3.4 Farmers’ linkages within the agricultural innovation system ...... 61 4.1 Thailand’s formal education system: Structure, students and gross enrolment ratios, 2012 ... 74 4.2 Overview of Thailand’s programmes for human resources development in STI ...... 77 4.3 Total new enrolments in S&T vs. social sciences, 2011 ...... 79 ABBREVIATIONS ix

ABBREVIATIONS

ARDA Agriculture Research and Development Agency ASEAN Association of South-East Asian Nations BAAC Bank for Agriculture and Agricultural Cooperatives BIOTEC National Center for Genetic Engineering and Biotechnology FDI foreign direct investment FTE full-time equivalent GDP gross domestic product GERD gross expenditure in R&D GII Global Innovation Index GISTDA Geo-informatics and Space Technology Development Agency +$,, +\GURDQG$JUR,QIRUPDWLFV,QVWLWXWH +'', +DUG'LVN'ULYH,QVWLWXWH +5 KXPDQUHVRXUFHV +5' KXPDQUHVRXUFHVGHYHORSPHQW ICT information and communications technologies IGOs inter-governmental organizations IP intellectual property IT information technology ITAP Industrial Technology Assistance Programme KMUTT King Mongkut’s University of Technology Thonburi LDD Land Development Department M&E monitoring and evaluation MOAC Ministry of Agriculture and Cooperatives MOST Ministry of Science and Technology NANOTEC National Nanotechnology Center NESD National Economic and Social Development (plan) NGO non-governmental organization NIA National Innovation Agency NRCT National Research Council of Thailand NSTDA National Science and Technology Development Agency 167,32 1DWLRQDO67,3ROLF\2IƄFH OECD Organisation for Economic Co-operation and Development 2+(& 2IƄFHRIWKH+LJKHU(GXFDWLRQ&RPPLVVLRQ x SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

260(3 2IƄFHRI60(V3URPRWLRQ 29(& 2IƄFHRIWKH9RFDWLRQDO(GXFDWLRQDO&RPPLVVLRQ PISA Programme of International Student Assessment PPP$ purchasing power parity in dollars R&D research and development RD&D research, development and diffusion RRI Researchers for Research in Industry RTO research and technology organization S&T science and technology SME small and medium-sized enterprise STI science, technology and innovation TDRI Thailand Development Research Institute TIMSS Trends in International Maths and Science Study 7,675 7KDLODQG,QVWLWXWHRI6FLHQWLƄFDQG7HFKQRORJLFDO5HVHDUFK 7/2 WHFKQRORJ\OLFHQVLQJRIƄFH TNC transnational corporation TRF Thailand Research Fund TVET technical and vocational education and training UBI university business incubator 81(6&2 8QLWHG1DWLRQV(GXFDWLRQDO6FLHQWLƄFDQG&XOWXUDO2UJDQL]DWLRQ EXECUTIVE SUMMARY xi

EXECUTIVE SUMMARY

)ROORZLQJDVLJQLƄFDQWLQFUHDVHLQSHUFDSLWDLQFRPHRYHUWKHSDVWIHZGHFDGHV7KDLODQGLVQRZH[SHULHQFLQJD decline in growth as well as productivity. The country is at risk of falling into the “middle-income trap” as it faces LQFUHDVLQJGLIƄFXOW\LQFRPSHWLQJDJDLQVWORZHUFRVWORFDWLRQVLQOHVVVNLOOLQWHQVLYHHFRQRPLFDFWLYLWLHVZKLOHVWLOO lacking the technological know-how and human capabilities of moving into more sophisticated, higher value- DGGHGDFWLYLWLHV2WKHUPDMRUFRQFHUQVIRU7KDLODQGUHODWHWRVRFLDOLQFOXVLYHQHVVDQGHQYLURQPHQWDOVXVWDLQDELOLW\ To address these challenges, it is imperative for Thailand to make strong efforts to foster innovation. Innovation is much more than research and development (R&D); it also involves the actions taken by economic actors to upgrade their technological level, enhance their organization and production methods, develop new activities and enter new markets. Thailand’s modest performance compared with other economies at a similar level of GHYHORSPHQWLVSDUWO\GXHWRUHODWLYHZHDNQHVVHVLQLWVLQQRYDWLRQV\VWHP+RZHYHUWKHFRXQWU\KDVVLJQLƄFDQW assets to help it become an innovation-based economy: a number of competitive industries, notably in automotive and electronic components, an agricultural sector that makes it a leading world exporter of several products, and a growing services sector. The country also has a sizeable research infrastructure, a reasonably well-developed higher education system and a large network of vocational schools. Political instability and a lack of policy continuity have weakened the ability of public institutions to provide DQHQDEOLQJHQYLURQPHQWIRUEXVLQHVVHVDQGHTXDOO\LPSRUWDQWWRVWHHUDQGVXVWDLQPDMRUUHIRUPVRYHUWLPH In the current context of national reforms, it will be important to adopt strategic policies aimed at supporting DQHZGHYHORSPHQWWUDMHFWRU\7KLV6FLHQFH7HFKQRORJ\DQG,QQRYDWLRQ3ROLF\ 67,3 5HYLHZSURSRVHVWKUHH PDMRUGLUHFWLRQVIRUWKRVHHIIRUWVHQKDQFLQJ67,JRYHUQDQFHDQGPDQDJHPHQWVWLPXODWLQJLQQRYDWLRQHIIRUWV and upgrading the education system.

Enhancing STI governance and management

The organization and functioning of institutions in charge of overseeing and funding Science, Technology and Innovation (STI) policies present a number of problems. Agencies with overlapping responsibilities have proliferated. There are several instances of individual departments being simultaneously responsible for policy VHWWLQJ ƄQDQFLQJ DQG LPSOHPHQWDWLRQ ZKHQ WKHVH VKRXOG LQ IDFW EH LQGHSHQGHQW RI HDFK RWKHU $GYLVRU\ FRPPLWWHHVDUHQRWVXIƄFLHQWO\LQFOXVLYH/DFNRIFODULW\UHJDUGLQJLQVWLWXWLRQDOUROHVDQGUHVSRQVLELOLWLHVDQGDODFN of oversight and accountability have resulted in poor management and a less than optimal use of resources in key elements of the innovation system. The following measures are proposed in order to enhance STI governance and management: • Establish a clear division of roles and responsibilities and hierarchy among STI institutions. The National STI Policy Committee should be entrusted with a supervisory role, focusing on strategic issues and establishing broad budget allocations, while implementation should be the responsibility of operational agencies. The Committee should be composed of the Minister of Finance in addition to the key relevant ministers, as well as high-level representatives of business organizations, trade unions, academics and civil society. It should be chaired by the Prime Minister and meet at least once a month. The National STI Policy 2IƄFHVKRXOGFRQFHQWUDWHRQSROLF\DGYLFHDQGLQFUHDVLQJO\RQSROLF\PRQLWRULQJDQGHYDOXDWLRQ • Clarify the respective roles of various R&D bodies. A clear distinction is needed between those bodies that design the policies and monitor their implementation and those that fund programmes and organizations. The supervising body overseeing the R&D policy, the National Research Council of Thailand (NRCT) should report to the National STIP Committee, and not to the Prime Minister (as it currently does). • Rationalize the R&D structure. Merge organizations that overlap, suppress those that have outlived WKHLUXVHIXOQHVVDQGHVWDEOLVKQHZRQHVDVDSSURSULDWH$QDXGLWRIWKHVFLHQWLƄFTXDOLW\DQGHIIHFWLYHQHVV of government research centres – conducted in association with international experts – could guide this rationalization exercise. xii SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

• Decentralize STI policy and infrastructure.1DWLRQDORYHUDOODQG67,VSHFLƄFLQYHVWPHQWVDQGUHVRXUFHV tend to be directed to the more technologically developed areas, leading to a concentration of activities DURXQGWKHFDSLWDO%DQJNRN67,RIƄFHVVKRXOGEHVHWXSWKURXJKRXWWKHFRXQWU\VHUYLQJQRWDEO\DVRQH stop shops for innovators and researchers. Branches of key research centres could be set up close to universities. Regional science and technology (S&T) parks should be further upgraded, and local awareness and capacities for developing STI policies encouraged.

Stimulate innovation efforts

Thailand has displayed a modest performance in terms of innovation. Linkages between various actors in the LQQRYDWLRQV\VWHP HJEXVLQHVVHQWHUSULVHVXQLYHUVLWLHVUHVHDUFKRUJDQL]DWLRQV DUHLQVXIƄFLHQW7KHYDULRXV H[LVWLQJƄQDQFLDODQGQRQƄQDQFLDOVFKHPHVWRLPSURYHLQQRYDWLRQHIIRUWVDUHWRRIUDJPHQWHGDQGXQFRRUGLQDWHG OHYHUDJLQJOLWWOH5 'DQGLQQRYDWLRQƄQDQFLQJIURPWKHSULYDWHVHFWRUDQGVXSSRUWLQJRQO\DVPDOOQXPEHURIƄUPV The following additional measures should be taken to support innovation more effectively: • Use matching funds to support collaborative R&D,VXEVLGL]LQJƄUPVp5 'SURMHFWVWKDWDUHXQGHUWDNHQ in collaboration with universities or public research entities. • Review current tax incentives for R&D and innovation, particularly their impact on small and medium- sized enterprises (SMEs), before proposing more generous tax incentives. • Scale-up bridging schemes (e.g. the Industrial Technology and Assistance Programme, ITAP) and RUJDQL]DWLRQV HJWKH+DUG'LVN'ULYH,QVWLWXWH +'', 7KDL$XWRPRWLYH,QVWLWXWH 7$, DQGWKH7KDL)RRG Institute) that operate at the interface between sources of knowledge and clients seeking knowledge. • Provide incentives for collaboration between industry and research centres and universities. Require public research organizations to progressively increase the percentage of their budgets funded through contracts. Provide incentives for researchers, teachers and their institutions to collaborate with industry. For example, formally value researchers’ collaboration with industry for the advancement of their careers, and in evaluations of universities and research institutions include criteria concerning their ability to collaborate with industry, provide services and transfer technology. • Foster awareness about intellectual property (IP) and the potential for commercializing research. Adopt a clear IP policy for publicly funded research, and support research processes that promote collaboration with industry and social partners. • Take full advantage of megaprojects. :HOOGHVLJQHGDQGLPSOHPHQWHGQDWLRQDOLQIUDVWUXFWXUHSURMHFWV because of their size, offer unique opportunities to boost domestic capabilities. The development of trained HQJLQHHUVDQGRIWHFKQRORJLFDOFRPSHWHQFHVDPRQJORFDOƄUPVWKURXJKHIƄFLHQWWHFKQRORJ\WUDQVIHUIURP IRUHLJQFRQWUDFWRUVVKRXOGEHDQH[SOLFLWREMHFWLYHRI7KDLODQGpVUDLOZD\PHJDSURJUDPPHIRUH[DPSOH7KLV VKRXOGEHVXSSRUWHGWKURXJKZHOOGHƄQHGDFWLRQVUHVSRQVLELOLWLHVDQGPRQLWRULQJV\VWHPV

Upgrade the education system

Thailand faces increasing demands for human resources in STI, both at the vocational and higher levels of education. The number of R&D personnel per population, particularly in the private sector, is relatively low. In DGGLWLRQWKHUHDUHVLJQLƄFDQWVNLOOVVKRUWDJHVLQFHUWDLQƄHOGVDQGLQGXVWULHV0RUHLPSRUWDQWO\7KDLODQGIDFHV SHUVLVWHQWGLIƄFXOWLHVLQWUDLQLQJSHRSOHZLWKWKH67,UHODWHGVNLOOVQHHGHGE\DQHFRQRP\WKDWDVSLUHVWRJURZ based on innovation and to compete in higher value-added activities. Substantial efforts are needed to improve the quality of STI education and training at all levels, including the following measures: • Improve education budgets. %XGJHWVVKRXOGSURYLGHVXIƄFLHQWUHVRXUFHVIRUWUDLQLQJWHDFKHUVLQ67,VNLOOV developing STI teaching materials and upgrading equipment, and supporting linkages with the private sector. • Make educational institutions accountable. Take appropriate measures with regard to underperforming HGXFDWLRQDOLQVWLWXWLRQVDQGDFWRUVLGHQWLƄHGWKURXJKWKHHVWDEOLVKHGTXDOLW\DVVXUDQFHSURFHVVHV$GMXVW quality assurance processes to reward institutional collaboration with the private sector. Raise the performance EXECUTIVE SUMMARY xiii

standards of all higher education institutions over time. Increasingly link budget allocations to performance in DPDQQHUWKDWSURYLGHVDGHTXDWHLQFHQWLYHVIRUTXDOLW\HQKDQFHPHQWDQGWKDWWDNHVLQWRDFFRXQWWKHVSHFLƄF mandates of different educational institutions. • Overhaul technical and vocational education and training (TVET) to make it an important mechanism IRUWUDLQLQJVNLOOHGZRUNHUV8SJUDGHWHDFKHUVpTXDOLƄFDWLRQVWHDFKLQJPHWKRGVDQGUHVRXUFHV)ROORZLQJDQ independent evaluation, adopt measures to enhance the quality and relevance of non-formal TVET (i.e. skills development training). • Reinforce education-business linkages. Programmes that expose students, teachers and academics to work in the private sector (e.g. internships, dual vocational training, mobility programmes and combined studies) should be reinforced and scaled up. Successful cooperative educational programmes (e.g. the Mechai Pattana School, the pilot work integrated learning, and the engineering practice schools of the King Mongkut’s University of Technology Thonburi) should be expanded.

Agricultural innovation and small-scale farming: A test case

This Review also examines in more detail the agricultural innovation system of Thailand from the perspective of small-scale farmers, who produce the bulk of the key energy and food crops and represent a large share of the population whose welfare could improve through innovation-driven growth. Three critical issues arise for policy in respect of agricultural innovation. First, there is no central policy or institutional mechanism to direct and ensure the effectiveness and cohesion of agricultural R&D and its diffusion. There is limited monitoring and evaluation of the impacts of R&D results on end- users. Secondly, activities to support and promote innovation in agriculture are not adequately linked to long-term planning and to building an effective enabling environment for STI activities at the farm level. Finally, there is a concentration of STI resources in and around Bangkok, and weaknesses in maintaining effective channels for GLIIXVLRQRIWKHEHQHƄWVIURP67,UHVRXUFHVWRVPDOOVFDOHIDUPHUVLQWKHUHJLRQV%DVHGRQWKHVHNH\LVVXHVWKH following recommendations are made: • Articulate an “innovation roadmap” WR DGGUHVV WKH IRXU PDMRU ORQJWHUP DJULFXOWXUDO FKDOOHQJHV ODQG fragmentation, inadequate water supply and management, poor and deteriorating soil quality, lack of human resources. • Develop and implement a long-term soil improvement strategy that includes a combination of a wide range of technologies, and reverses the increasing use of chemical inputs. • Following wide stakeholder discussions, consider resubmitting a national biosafety regime for parliamentary approval. In addition, in order to inform the design of STI programmes and policies, further research is required regarding: • STI awareness and engagement at the provincial, district and tambon (sub-district) levels. • Practices that work in Thailand for establishing local links to improve the participation of farmers and to HQKDQFHNQRZOHGJHDQGLQIRUPDWLRQƅRZVEHWZHHQSURGXFHUVDQGXVHUVRIWHFKQRORJ\ • 7KHFXUUHQWVWDWHRIDJULFXOWXUDOH[WHQVLRQDQGPDMRUEDUULHUVWRHIIHFWLYHWHFKQRORJ\GLIIXVLRQ • Evaluation and monitoring of agricultural R&D undertaken outside the Ministry of Agriculture and Cooperatives (MOAC). $QRYHUDOOFRQFOXVLRQRIWKLV67,35HYLHZLVWKDW7KDLODQGKDVVLJQLƄFDQWDVVHWVIRULQQRYDWLRQGULYHQHFRQRPLF growth and for inclusive and sustainable development. Most of the needed measures involve fostering discipline and collaboration within the overall innovation system and among the actors concerned. Decisive action and strategic reforms are required to ensure the long-term sustainability of Thailand’s social and economic development.

General context of science, technology and innovation in Thailand 2 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

A. KEY SOCIO-ECONOMIC down economic growth which has not returned to its pre-crisis levels. Nevertheless, since 2002 the economy TRENDS has experienced an average annual growth rate of 3.8 Thailand is an upper-middle-income country and the per cent, despite the huge setbacks resulting from the second largest economy in South-East Asia with a JOREDOHFRQRPLFFULVLVRIŸDQGWKHPDMRU JURVVGRPHVWLFSURGXFW *'3 RI}ELOOLRQLQ ƅRRGVRI ƄJXUH} 7KDLODQGpVUDWHRIHFRQRPLF WDEOH} H[SDQVLRQDFFHOHUDWHGWR}SHUFHQWLQRZLQJ Between 1961 and 1996, GDP growth averaged 7.7 largely to the low base of comparison in the previous, per cent, and high export growth rates led to rapid ƅRRGKLW \HDU EXW WKLV UDSLG SDFH RI JURZWK ZDV LQGXVWULDOL]DWLRQDQGGLYHUVLƄFDWLRQDQGWRDVLJQLƄFDQW not sustained in 2013. Thailand’s political crisis has JURZWKRISHUFDSLWDLQFRPH7KH$VLDQƄQDQFLDOFULVLV DIIHFWHGFRQVXPHUDQGEXVLQHVVFRQƄGHQFHDQGUHDO of 1997-1998 resulted in a sharp recession, slowing GDP growth for 2014 is estimated to be 0.7 per cent.1

)LJXUH 7KDLODQGpVUHDO*'3JURZWKUDWHŶ SHUFHQWDJH

15 Global economic Major 11.1 9.3 Asian financial 10 crisis flooding 8.7 8.1 crisis 7.2 8.4 6.3 7.3 8.0 6.2 4.9 5.5 6.4 3.4 4.2 5 5.7 4.6 4.5 3.0

Percentage 0 1.7 0.3 -0.9 -2.8 -5

-7.7 -10 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: UNCTAD, based on UNCTADstat.

The Thai economy has undergone a structural transfor- Thailand is a leading exporter of a number of mation over the past few decades, with the reallocation agricultural and agro-based products, including of labour and capital from agriculture to manufacturing rice, sugar, rubber, cassava and chicken. Indeed DQG VHUYLFHV +RZHYHU WKLV VWUXFWXUDO WUDQVIRUPDWLRQ food and agricultural raw materials account for has been only partial, as labour participation in agricul- QHDUO\}SHUFHQWRI7KDLODQGpVH[SRUWV2 It is also WXUH LV VWLOO PDUNHGO\ KLJK WDEOH} 7RGD\ 7KDLODQGpV the second largest exporter of hard-disk drives and economic output is dominated by the services sector DPDMRUDXWRPDQXIDFWXULQJKXE([SRUWVDFFRXQWHG (including tourism), which accounts for half of its GDP IRU}SHUFHQWRI7KDLODQGpV*'3LQ WDEOH} DQGIRU}SHUFHQWRIHPSOR\PHQWIROORZHGE\LQGXVWU\ RI ZKLFK } SHU FHQW FRPSULVHG PDQXIDFWXUHV3 }SHUFHQWRI*'3 LQZKLFKHOHFWURQLFVDQGDXWRPR- &KLQDKDVEHFRPHRQHRIWKHFRXQWU\pVWKUHHPDMRU bile and auto parts manufacturing dominate, while the trading (export and import) partners, together with share of the textile industry has fallen. Agriculture, which Japan and the United States.4 The United Arab FRQWLQXHVWRFRQWULEXWH}SHUFHQWRI*'3UHPDLQVDQ (PLUDWHV DQG 6DXGL $UDELD DUH 7KDLODQGpV PDMRU LPSRUWDQWHFRQRPLFVHFWRUDVLWHPSOR\VDURXQG}SHU import partners, because of its reliance on oil from cent of the labour force and feeds much of the country. these countries. CHAPTER I : GENERAL CONTEXT OF SCIENCE, TECHNOLOGY AND INNOVATION IN THAILAND 3

7DEOH .H\HFRQRPLFLQGLFDWRUVŶ(Billions of US dollars at current prices and current exchange rates, XQOHVVRWKHUZLVHVSHFLƂHG

1970 1975 1980 1985 1990 1995 Output *'3 ELOOLRQVRIGROODUV 7 15 33 40 88 169 126 189 338 365 386 409 *'3SHUFDSLWD GROODUV 200 366 707 773 1 561 2 865 2 023 2 877 5 090 5 478 5 775 6 097 6HFWRUDOYDOXHDGGHG RI*'3 $JULFXOWXUHKXQWLQJIRUHVWU\ƂVKHULHV 10 9 9 9 11 11 10 .. Industry .. Mining, manufacturing, utilities 19 21 24 27 31 30 34 36 37 36 36 .. Manufacturing 16 19 22 22 27 27 29 30 31 30 30 .. Services 51 55 50 51 .. Wholesale, retail trade, rest. & hotels 24 25 23 24 23 22 21 18 18 18 18 .. Other activities 21 20 20 21 22 25 25 27 25 26 26 .. Employment $JULFXOWXUH RIWRWDOHPSOR\PHQW .. .. 71 .. 64 52 49 43 38 39 40 .. ,QGXVWU\ RIWRWDOHPSOR\PHQW .. .. 10 .. 14 20 19 20 21 21 21 .. 6HUYLFHV RIWRWDOHPSOR\PHQW .. .. 19 .. 22 28 32 37 41 41 39 .. 8QHPSOR\PHQW RIODERXUIRUFH .. .. 0.9 3.7 2.2 1.2 2.4 1.3 1.0 0.7 0.7 .. Gini index ...... 45 .. 43 .. 39 ...... )',LQZDUGƃRZV ELOOLRQVRIGROODUV 0.04 0.09 0.19 0.16 2.58 2.07 3.41 8.07 9.15 3.71 10.71 12.95 *URVVFDSLWDOIRUPDWLRQ RI*'3 28 30 29 28 42 43 22 31 26 27 30 .. Trade 7UDGHEDODQFH ELOOLRQVRIGROODUV .. .. -2.1 -1.1 -6.6 -12.0 10.1 -3.5 19.0 6.4 2.6 10.1 ([SRUWVJRRGV VHUYLFHV RI*'3 14 18 23 23 33 42 65 69 67 71 70 .. ,PSRUWVJRRGV VHUYLFHV RI*'3 19 22 30 25 41 48 57 70 61 70 71 .. Current account ELOOLRQVRIGROODUV .. .. -2.08 -1.54 -7.28 -13.58 9.31 -7.65 9.95 8.92 -1.43 -2.68 RI*'3 .. .. -6.2 -3.8 -8.2 -8.0 7.4 -4.1 2.9 2.4 -0.4 -0.7 Source: UNCTADstat, World Bank, World Development Indicators.

In the 1970s, Thailand replaced its import-substitution gave Thailand’s labour cost advantage a further boost industrialization strategy with an export-led strategy. and attracted investments by Japanese transnational This growth strategy has since supported foreign corporations (TNCs) in assembly industries (electronics direct investment (FDI) as a vehicle for economic and automotive sectors). Today, the country continues development by attracting new industries to Thailand, WRDWWUDFWJUHHQƄHOGLQYHVWPHQWVLQWKHVHWZRVHFWRUV primarily in assembly activities (especially electronics 81&7$' D ZLWK -DSDQHVH ƄUPV EHLQJ WKH and automobiles) and natural-resource-based largest investors. products. Foreign investors were initially attracted to Thailand because of its lower production costs. FDI has contributed to employment creation, capital )', LQƅRZV ERRPHG GXULQJ WKH SHULRG Ÿ IRUPDWLRQDQGGLYHUVLƄFDWLRQRISURGXFWLRQ+RZHYHU following a combination of sound macroeconomic while TNCs have transferred technology to their policies, well-timed regulatory changes and a positive subsidiaries, overall, FDI has made only a moderate LQWHUQDWLRQDOFRQWH[W +R\UXSDQG6LPRQ 7KH contribution to the building of domestic capabilities real exchange rate appreciation in Japan and the and the development of a domestic support industry in Republic of Korea following the Plaza Accord of 1985 Thailand, unlike in Malaysia and Singapore.5 The lack 4 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

RIZHOOGHƄQHGVXVWDLQHGDQGFRKHUHQWO\LPSOHPHQWHG LQGXVWULHV 6XHKLUR +RZHYHU JUDGXDOO\ DQG STI and industrial policies have constrained the particularly from 2001, industrial policy shifted from development of domestic STI capabilities. the promotion of targeted industries towards the Industrial policies introduced in the 1980s and development of general business competitiveness and 1990s promoted general education, infrastructure SME promotion (Suehiro, 2010). Moreover, national building and exports, but lacked focus, with virtually competitiveness was to be led by the private sector no selective policies to support particular industries while the Government would play a coordinating (Intarakumnerd et al., 2010). Trade policy focused UROHDQGLWVVFRSHIRUVXSSRUWLQJ6WDWHSURMHFWVZDV 6 more on maintaining macroeconomic balance than on reduced (Suehiro, 2010). The adopted cluster policy 7 promoting technological learning. FDI policy aimed at LGHQWLƄHGƄYHQDWLRQDOVWUDWHJLFLQGXVWULHV but these attracting capital and generating employment, but it were not geographically concentrated. As a result, the did not include reciprocal performance-based criteria, policy did not help catalyse collective technological such as local value added or technological upgrading learning or the emergence of positive externalities targets, that could have encouraged the development associated with the proximity of actors (Intarakumnerd of technological capabilities. One exception was the et al., 2010). Neither the short-lived STI and industrial local content requirement in the automobile industry. policies nor the limited monitoring and evaluation 7LJKWHQHG SXEOLF VSHQGLQJ DOVR SUHYHQWHG PDMRU (M&E) of policies have been conducive to systematic SXEOLFLQYHVWPHQWVLQVWUDWHJLFSURMHFWVDQGLQGXVWULHV learning (Intarakumnerd et al., 2010). +R\UXSDQG6LPRQ Overall, Thailand’s economic growth has resulted )ROORZLQJ WKH $VLDQ ƄQDQFLDO FULVLV more from capital investment and employment Thailand introduced industrial restructuring plans reallocation from the agricultural to the manufacturing (IRPs) to address industrial weaknesses and promote and services sectors, than from productivity gains. industrial deepening. The master plan of the IRPs Total factor productivity accounted for only one sixth LGHQWLƄHGSULRULW\VHFWRUVDQGVXSSRUWHGLQGHSHQGHQW of the annual growth rate between 1985 and 2005 technology institutions or sathabans (e.g. the (World Bank, 2011). Labour productivity growth was Thailand Productivity Institute, the Thai German IDVW LQ WKH HDUO\ V +RZHYHU *'3 DV ZHOO DV Institute and the Thai Automotive Institute) to build productivity growth performances have declined in the the technological capacities of SMEs in targeted SDVWGHFDGH ƄJXUHV}DQG

)LJXUH 7UHQGVLQ*'3DQGODERXUSURGXFWLYLW\ )LJXUH 7RWDOIDFWRUSURGXFWLYLW\JURZWK JURZWK7KDLODQGŶ 7KDLODQGŶ(average annual (average annual growth rate) growth rate)

10 3 8 2.6 2.5 6 2 4 1.5 Percentage 0.9 2 Percentage 1

0 0.5 1990–1995 1995–2000 2000–2005 2005–2011 0 1970–1990 1990–2011 Labour productivity growth GDP growth

Source: Asian Productivity Organization (APO), 2013 Source: APO, 2013 Note: Labour productivity growth: Average annual growth rate of GDP at constant basic prices per hour, at 2005 PPP$ CHAPTER I : GENERAL CONTEXT OF SCIENCE, TECHNOLOGY AND INNOVATION IN THAILAND 5

7KDLODQG KDV DFKLHYHG D VLJQLƄFDQW LQFUHDVH LQ SHU for its policymakers and business leaders. The country FDSLWDLQFRPH LQUHFHQWGHFDGHV ƄJXUH} 7RGD\ is at risk of falling into the so-called “middle-income it remains internationally competitive8 and attractive trap”,9 whereby it can no longer compete against to FDI because of a generally sound macroeconomic lower cost neighbouring countries such as Cambodia, environment together with its market size, a fairly well- Lao People’s Democratic Republic and Viet Nam in GHYHORSHG ƄQDQFLDO PDUNHW DQG UHODWLYHO\ UHDVRQDEOH less skill-intensive activities, while still lacking the levels of competition (despite a number of barriers to STI capabilities and skills base needed to move into FRPSHWLWLRQLQVSHFLƄFVHFWRUV :() +RZHYHU higher value-added activities and compete with more LW LV QRZ H[SHULHQFLQJ GLIƄFXOWLHV LQ PDNLQJ IXUWKHU industrialized neighbours, such as the Republic of progress. This has become a source of concern both Korea and Singapore.

)LJXUH *'3SHUFDSLWDRIVHOHFWHGFRXQWULHVŶ(dollars at current prices and current exchange rates)

60 000 Singapore: 52 141 50 000 7 000 China: 6 070 40 000 6 000 Thailand: 5 775 30 000 5 000 Rep. of Korea: 23 052 4 000 20 000 Indonesia:3 557 Malaysia: 3 000 10 422 Philippines: 2 587 10 000 2 000 Viet Nam: 1 716 0 1 000 2010 2011 2012 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: UNCTADstat.

Cumbersome, non-transparent bureaucratic concerns of increasingly divided constituencies, procedures are often cited as factors that adversely further contributing to policy instability. The growing affect the quality of the business environment (see, predominance of politicians and lobbyists (see, for example, WEF, 2014), including for innovation. for example, Suehiro, 2010) over the professional Political instability, short-lived governments and the civil service has also affected the design and resulting lack of policy continuity have also weakened implementation of economic policies and long-term the ability of public institutions to provide an enabling development strategies. environment for businesses, and, equally important, WRVWHHUDQGVXVWDLQPDMRUUHIRUPVRYHUWLPH)RUWKH Large TNCs (particularly Japanese) State-owned past few years, growing tensions between different enterprises and family-owned domestic conglomerates elements of Thai society have created divisions along are the primary contributors to GDP (OECD, 2013a). social as well as geographical lines, and added to 7KHVHODUJHƄUPVDQGFRQJORPHUDWHVSOD\DPDMRUUROH WKH SROLWLFDO GLIƄFXOWLHV IDFLQJ WKH FRXQWU\ $ KLJKO\ in the development of STI capabilities in the country, confrontational political system has favoured the through investments in STI but also through their development of policies that seek to address the LQƅXHQFH RQ WKH GHVLJQ RI LQGXVWULDO DQG HFRQRPLF 6 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

SROLFLHV 6XHKLUR 60(VVWLOODFFRXQWIRU}SHU somewhat diminished thereafter, partly due to improved FHQWRIHPSOR\PHQW}SHUFHQWRIQRQDJULFXOWXUDO social protection and widespread employment *'3DQG}SHUFHQWRIH[SRUWV 260(3 $Q opportunities, remains high by international standards important feature of SMEs in Thailand is the relative (UNDP, 2014). In 2010, the Gini index (a measure of XQGHUUHSUHVHQWDWLRQ RI PHGLXPVL]HG ƄUPV WKRVH LQFRPHLQHTXDOLW\ ZDV}FRPSDUHGZLWKLQ HPSOR\LQJŸHPSOR\HHV ZKLFKPD\FRQVWUDLQ WDEOH} productivity and the development of technological 7KH VSDWLDO GLPHQVLRQ LV D PDMRU IDFWRU RI LQFRPH capability. This is a common pattern in developing and human development inequality. Economic and countries, often referred to as the «missing middle» political powers are concentrated in Bangkok and (UNCTAD, 2007). the surrounding provinces. Poverty is largely a rural $QRWKHUIDFWRUWKDWLVDPDMRUKLQGUDQFHWR7KDLODQGpV phenomenon (FAO, 2011; UNDP, 2014)11 and is economic growth is its geographically unequal DIIHFWLQJVLJQLƄFDQWO\WKHQRUWKHDVWUHJLRQWKHERUGHU GHYHORSPHQW :KLOH SRYHUW\ IHOO IURP } SHU FHQW provinces in the northern region and the three southern- LQ WR } SHU FHQW LQ 81'3 10 PRVW SURYLQFHV ƄJXUH} 7KHUH DUH DOVR VLJQLƄFDQW widespread inequalities of income and opportunity are disparities in terms of access to health, education, taking a toll on Thailand’s economic potential. Income employment, housing, family and community life, inequality, which grew rapidly at the start of the transport and communication, and political and civil industrialization process (1980s and early 1990s) and society participation at the provincial level (UNDP, 2014).

)LJXUH *URVVSURYLQFLDOSURGXFWSHUFDSLWD%DQJNRNDQGWKHUHJLRQV(thousands of baht)

400 361 355 350

300 264 250

200

150 Thousand baht 115 105 79 100 49 50

0 Bangkok East Central West South North North-east

Source: UNDP, 2014.

7KHUH DUH PDMRU FRQFHUQV DERXW HQYLURQPHQWDO and accompanied economic growth. Climate change sustainability in Thailand. Environmental degradation is also affecting Thailand. The country is experiencing and the deterioration of natural resources have resulted UHFXUULQJ H[WUHPH ZHDWKHU HYHQWV ODQGVOLGHV ƅRRGV from rapid urbanization, industrialization and increasing (notably that of 2011) and droughts that have serious LQWHQVLYHIDUPLQJDQGƄVKLQJDFWLYLWLHVWKDWKDYHVXSSRUWHG impacts on the lives and livelihoods of its people. CHAPTER I: GENERAL CONTEXT OF SCIENCE, TECHNOLOGY AND INNOVATION IN THAILAND 7

B. SCIENCE, institutions and universities. Weak access to and use of information and communications technologies (ICTs) TECHNOLOGY in rural areas and periphery regions also constrain the AND INNOVATION emergence of a broader range of innovation activities PERFORMANCE IN and innovative actors. THAILAND Investment in R&D

1. STI inputs 7KDLODQGpVƄQDQFLDOVXSSRUWIRU67,DVPHDVXUHGE\WKH proxy, “gross expenditure on R&D” (GERD) indicator, 7KDLODQGKDVVL]HDEOHƄQDQFLDODQGKXPDQUHVRXUFHV is lower than that of the more advanced economies devoted to science and technology (S&T), but in the region, in absolute terms and relative to GDP QRW VXIƄFLHQW WR VXSSRUW EURDGEDVHG JURZWK DQG (0.25 per cent), to population and to the number of enable innovation-led economic development. R&D 5 'SHUVRQQHO ƄJXUHV}DQG 0RUHRYHU5 ' investments are mainly from public sources, and investments are largely from public expenditure rather most of the R&D work is conducted in public research WKDQIURPWKHSULYDWHVHFWRU ƄJXUH}

)LJXUH *URVVH[SHQGLWXUHRQ5 'VHOHFWHG$VLDQFRXQWULHVYDULRXV\HDUV(Millions of current PPP$ and as a percentage of GDP)

GERD in millions of current PPP$ GERD as a percentage of GDP 5 250 000 4 200 000 3 150 000

2 PPP$ 100 000 ns of current 1 50 000 Per cent of GDP 0 0 Millio China Japan Republic Malaysia Singapore Thailand of Korea

Source: Data centre of UNESCO Institute for Statistics (https://stats.uis.unesco.org). Note: Data for the countries shown refer to different years: China (2012), Japan (2011), Republic of Korea (2011), Malaysia (2011), Singapore (2012), Thailand (2009).

Figure 1.7 Public and private investment in R&D, selected Asian countries, various years

GERD per capita (in current PPP$) GERD per researcher, GERD performed by business enterprises (%) FTE (in '000 current PPP$) 100 1 500 1 000 50

500 '000 PP$

Percentage 0 0 Current PP$/ current China Japan Republic Malaysia Singapore Thailand of Korea

Source: Data centre of UNESCO Institute for Statistics (https://stats.uis.unesco.org). Note: 6HHQRWHWRƄJXUH} 8 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

Labour force employed in S&T (unemployment rate is generally low in Thailand WDEOH} +RZHYHU DURXQG } SHU FHQW RI 6 7 12 The labour force employed in S&T in Thailand has JUDGXDWHVZRUNLQDGLIIHUHQWDUHDWKDQ6 7 ƄJXUH} LQFUHDVHG FRQVWDQWO\ WR UHDFK } PLOOLRQ SHUVRQV –which suggests a poor match between educational LQ }SHUFHQWRIDWRWDOZRUNIRUFH ƄJXUH} RIIHUDQGPDUNHWQHHGV,QWKH6 7ZRUNIRUFH}SHU There is limited unemployment among S&T graduates, cent have a degree lower than a bachelor’s.

)LJXUH /DERXUIRUFHHPSOR\HGLQ6 7LQ7KDLODQGŶ(Millions of persons)

3.5

3 Employed 2.5 S&T employed 2 S&TemployedandgraduatedinS&T 1.5 S&Temployedandgraduatedinnon-S&T

Million 1 Graduated in S&T but work in another field Unemployed 0.5 0 2007 2008 2009 2010 2011

(PSOR\HG 7KRVHHPSOR\HGLQ6 7JUDGXDWHVLQ6 7EXWZRUNLQJLQDQRWKHUƄHOG S&T employed = S&T employed and graduated in S&T + S&T employed and graduated in non-S&T Source: 1DWLRQDO67,3ROLF\2IƄFH

Thailand has over 60,000 persons working in R&D RQO\}SHUFHQWRI5 'SHUVRQQHOHPSOR\HG today, following an impressive growth of such personnel in full-time equivalent (FTE) worked in the private RYHU WKH GHFDGH Ÿ +RZHYHU PXFK RI sector. The number of R&D personnel per thousand that growth has taken place at public and academic inhabitants and the ratio of researchers in the private institutions, while the proportion of researchers in the sector in Thailand remains low compared with other SULYDWH VHFWRU KDV GHFOLQHG VWHDGLO\ WDEOH} %\ FRXQWULHVLQWKHUHJLRQ ƄJXUH}

Figure 1.9 Proportion of R&D personnel in different sectors, selected Asian countries, various years (Percentage)

100 8 7.29 90 6.92 6.89 7 Higher 80 6 education (%) 70 Public sector (%) 60 5 50 4 Business sector (%) 40 Percentage 75 3 69 70 Total R&D 30 1.99 2.11 52 2 personnel (FTE) thousand population thousand

20 Total R&D per personnel per thousand 10 0.91 17 1 population 20 0 0 Thailand Malaysia China Korea Japan Singapore (2009) (2011) (2011) (2010) (2010) (2010)

Source: Data centre of UNESCO Institute for Statistics, at https://stats.uis.unesco.org. CHAPTER I : GENERAL CONTEXT OF SCIENCE, TECHNOLOGY AND INNOVATION IN THAILAND 9

Access to and use of ICTs in Thailand FRPSDUHGZLWKRQHWKLUGLQ&KLQDDQGRYHU}SHU Access to and use of ICTs are fundamental for FHQWLQ0DOD\VLD 1DWLRQDO67,3ROLF\2IƄFH innovation. Thailand’s ICT infrastructure and ICT More importantly, there are wide urban-rural XVH DUH VLJQLƄFDQWO\ ODJJLQJ EHKLQG RWKHU $VLDQ differences in ICT use and access. For instance, the economies, partly because of an underdeveloped percentage of Internet users in the regions (around rural infrastructure for ICTs. For instance, in 2011, 20 per cent) is half that of Bangkok (40.3 per cent) RQO\ } SHU FHQW RI 7KDLV ZHUH XVLQJ WKH ,QWHUQHW ƄJXUH}

)LJXUH 'LVSDULWLHVLQ,&7DFFHVVDQGXVHLQ7KDLODQG(percentage)

Urban Rural Bangkok Central North South Northeast 80 80

60 60

40 40

20 20

0 0 Fixed line Mobile users Computers per Computer Internet Households Establishements subscriptions household users users using Internet using Internet

Source: Based RQ1DWLRQDO67,3ROLF\2IƄFH Note: Fixed line subscriptions (per 100 inhabitants, 2010); mobile phone users (population 6 years of age and over using mobile phones per 100 inhabitants); computers per household (computers per 100 households); Computer users (as a percentage of the population aged 6 years and over using computer); Internet users (population aged 6 years and over using the Internet per 100 inhabitants; households using the Internet (population of households using the Internet per 100 inhabitants); establishments using the Internet (population of establishments using the Internet per 100 inhabitants)

2. STI outputs the more advanced countries in the region, they show greater international collaboration than researchers 6FLHQWLƂFSXEOLFDWLRQV in China, Japan, Malaysia and the Republic of Korea and greater publication impact (as measured by Thailand has a reasonable capacity to publish the h-index14 WKDQ 0DOD\VLD WDEOH} +DOI RI WKH VFLHQWLƄF DUWLFOHV ,Q DUWLFOHV ZHUH collaborative research is done with researchers LQGH[HG LQ LQWHUQDWLRQDO MRXUQDOV13 While Thai from the United States, Japan, the United Kingdom, researchers publish fewer articles than researchers in Australia and China.

7DEOH 5HODWLYHOHYHODQGLPSDFWRISXEOLVKHGUHVHDUFKVHOHFWHG$VLDQFRXQWULHV

China Japan Malaysia Rep. of Korea Singapore Thailand

Documents published 425 677 121 668 23 190 71 072 17 052 Citations per document published in 2010 4.0 5.9 3.6 6.1 9.5 5.1

H-index 436 694 145 375 308 190

International collaboration 17 25 34 27 58

Source: UNCTAD, based on SCImago Journal & Country Rank, at: www.scimagojr.com. 10 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

3DWHQWVDQGRWKHULQWHOOHFWXDOSURSHUW\ ,3 particularly relative to their investments in R&D. During WKHSHULRGŸOHVVWKDQ}SHUFHQWRISDWHQWV Thailand has a fairly developed IP system, although were granted to each of these two sectors, even there are considerable delays in examining patent WKRXJK WKH\ DFFRXQWHG IRU } SHU FHQW DQG SHU applications and some uncertainty about protection cent, respectively, of GERD.15 On the other hand, utility (WEF, 2014). Patent applications and grants largely models, trademarks and industrial design are much involve non-residents. In 2013, of the 1,263 patents more relevant for Thai residents, as is to be expected JUDQWHG E\ 7KDLODQGpVSDWHQW RIƄFH RQO\ } SHU FHQW in a country at Thailand’s stage of development and ZHUH JUDQWHG WR UHVLGHQWV ƄJXUH} 'RPHVWLF technological capabilities. For instance, in 2012 nearly public research institutions and universities accounted }SHUFHQWRIXWLOLW\PRGHODSSOLFDWLRQVZHUHƄOHGE\ for a minor proportion of the total patents granted, residents.

)LJXUH ,QWHOOHFWXDOSURSHUW\LQGLFDWRUV

Total Residents (per cent) 53 102 50 000 100 45 000 94.7 90 40 000 80 35 000 70 Percentage 30 000 63.6 60 52.5 23 687 57.6

Total 25 000 50 20 000 47.1 40 15 000 7 743 30 10 000 20.3 20 5000 1 263 1 648 4 364 3 241 10 0 5.4 0 Patent Patent grants Utility model Trademark Trademark Industrial Industrial applications applications applications registrations design design applications registrations

Source: 81&7$'EDVHGRQ:RUOG,QWHOOHFWXDO3URSHUW\2UJDQL]DWLRQ :,32 6WDWLVWLFDO&RXQWU\3URƄOHVDWKWWSZZZZLSRLQW LSVWDWVHQVWDWLVWLFVFRXQWU\BSURƄOH

Technology content of exports medium-skill-intensive technologies account for the EXONRILWVH[SRUWVRIPDQXIDFWXUHVDW}SHUFHQWDQG Over the past two decades there has been a }SHUFHQWUHVSHFWLYHO\ ƄJXUH} 7KHVHDUHODUJHO\ VLJQLƄFDQWLQFUHDVHLQWKHVNLOODQGWHFKQRORJ\FRQWHQW from the automobile and electronics industries, which of Thailand’s exports. Products involving high- and depend on imported technologies.

)LJXUH (YROXWLRQRIWKHWHFKQRORJLFDOFRQWHQWRI7KDLODQGpVH[SRUWVŶ(percentage)

High-skill: Other, excluding electronics 43% 43% High-skill: Parts and components for electrical and electronic goods High-skill: Electronics (excluding parts and components)

22% Medium-skill: Other, excluding electronics 40% Medium-skill: Parts and components for electrical and electronic goods Medium-skill: Electronics (excluding parts and components)

Low-skill and technology-intensive manufactures Labour-intensive and resource-intensive manufactures 1995 2013

Source: UNCTAD, based on UNCTADstat. CHAPTER I : GENERAL CONTEXT OF SCIENCE, TECHNOLOGY AND INNOVATION IN THAILAND 11

7KDLODQGpVGHƄFLWLQWKHWHFKQRORJ\EDODQFHRISD\PHQWV16 payments, and one third of the consulting and technical URVHVLJQLƄFDQWO\IURPWR ƄJXUH} 7KLV fees were incurred by the oil and gas sector.17 This type was largely due to higher payments, which have been of imbalance is characteristic of an economy that is only partially offset by higher receipts from consulting pursuing more sophisticated activities but has not yet and technical fees. In 2011, the automotive sector GHYHORSHGVXIƄFLHQWGRPHVWLFFDSDELOLWLHVWRJHQHUDWH accounted for one third of royalty and licence fee revenue from IP.

)LJXUH 7HFKQRORJ\EDODQFHRISD\PHQWVŶ (millions of baht)

100 000

50 000

0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 -50 000

-100 000

-150 000 –161- 778 -200 000 Royalty and licence fees (payments) Royalty and licence fees (receipts) Consulting and technical fees (payments) Consulting and technical fees (receipts) Balance of payments (total payments – receipts)

Source: 81&7$'EDVHGRQ%DQNRI7KDLODQGGDWDIURP1DWLRQDO67,3ROLF\2IƄFH

2YHUYLHZRIƂUPVpLQQRYDWLRQ than larger ones, and when they do so, their activities DFWLYLWLHV tend to be less sophisticated. Conducting quality control or testing activities18 is The latest R&D and innovation survey conducted in IDLUO\ FRPPRQ LQ 7KDLODQG 2YHU WZR WKLUGV RI ƄUPV Thailand, covering activities in 2011, provides some conducted a quality control or testing activity in insights into the innovation features of the private +RZHYHUOHVVWKDQ}SHUFHQWRIVPDOOƄUPV VHFWRU$VLQRWKHUFRXQWULHVVPDOOHUƄUPVLQ7KDLODQG have acquired or adapted external technologies or tend to engage less in R&D and innovation activities GHVLJQHGSURGXFWVRUSURFHVVHV ƄJXUH}

)LJXUH 3URSHQVLW\WRFRQGXFWTXDOLW\DFWLYLWLHVDGDSWRUDFTXLUHWHFKQRORJ\DQGGHVLJQQHZSURGXFWVRU processes 3HUFHQWDJHRIƂUPVFDUU\LQJRXWHDFKRIWKHDFWLYLWLHVE\ƂUPVL]H

Large Medium Small 90 80 70 60 50 40 Percentage 30 20 10 - Quality control Testing Process or system Adaptation of Acquisition of Product design (e.g. product inspection) design external technology external technology

Source: UNCTAD, based on data from the National R&D and Innovation Survey 2011. 12 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

&RQVLGHUDEO\ IHZHU ƄUPV DUH HQJDJHG LQ WKH PRUH gas industries). In-house R&D expenditure is largely sophisticated activity of conducting R&D. Over devoted to the development of new or improved D TXDUWHU RI ODUJH ƄUPV FRQGXFW 5 ' LQKRXVH products (65 per cent) rather than processes (22 per FRPSDUHG ZLWK RQO\ } SHU FHQW RI VPDOOHU ƄUPV FHQW 6L[}SHUFHQWRIƄUPVRXWVRXUFH5 'DFWLYLWLHV ƄJXUH} 7KH SURSHQVLW\ RI ƄUPV WR FRQGXFW ƄJXUH} 0RVW RXWVRXUFHG 5 ' LV XQGHUWDNHQ in-house R&D varies greatly across sectors. by local universities (31 per cent) and foreign private ,QGHSHQGHQWO\ RI ƄUP VL]H WKH ODUJHVW SURSRUWLRQ organizations (31 per cent), and to a lesser extent by RI ƄUPV FRQGXFWLQJ VXFK 5 ' FRQVLVWV RI WKRVH domestic public research organizations (12 per cent) engaged in manufacturing (notably the chemical, RU IRUHLJQ XQLYHUVLWLHV SHU FHQW $IƄOLDWHG DQG electronics, food, rubber, machinery, and oil and SDUHQWƄUPVSOD\DPLQRUUROHLQWKLVDUHD

)LJXUH )LUPVFRQGXFWLQJLQKRXVH5 'DQGRXWVRXUFLQJ5 'E\ƂUPVL]H(percentage)

In-house R&D Outsourcing R&D 35 30 25 20 15

Percentage 10 5 - All firms Small Medium Large

Source: UNCTAD, based on data from the National R&D and Innovation Survey, 2011.

Reported innovation is greater in goods than in services: JRRGVRQO\}SHUFHQWKDYHLQWURGXFHGDQHZVHUYLFH ZKHUHDVQHDUO\RQHƄIWKRIƄUPVKDYHLQWURGXFHGQHZ ƄJXUH}

)LJXUH ,QQRYDWLRQLQJRRGVDQGVHUYLFHVFRPSDUHGE\VL]HRIƂUP(percentage)

Product Large firms Process Large firms innovation Medium-sized firms innovation Medium-sized firms Small firms Small firms 30 25 20 15 10 Percentage 5 0 Introducing Introducing new New methods of New supporting activities New methods of New logistics, delivery new goods services producing goods for processes (maintenance producing services or distribution methods systems; operations for purchasing, accounting, or computing)

Source: UNCTAD, based on data from the National R&D and Innovation Survey, 2011.

According to the results of the National R&D and technology and markets. Anecdotally, medium-sized ,QQRYDWLRQ 6XUYH\ ƄUPV UHJDUGOHVV RI WKHLU ƄUPV WHQGHG WR UHSRUW JUHDWHU GLIƄFXOWLHV IRU HDFK size, reported that the main barriers to innovation RIWKHEDUULHUVWKDQVPDOOHUDQGODUJHUƄUPV/DUJHU ZHUH WKH ODFN RI TXDOLƄHG SHUVRQQHO WKH FRVW RI ƄUPVSHUFHLYHGDFFHVVWRƄQDQFHDVDUHODWLYHO\OHVV innovation and limited access to information on important barrier. CHAPTER I : GENERAL CONTEXT OF SCIENCE, TECHNOLOGY AND INNOVATION IN THAILAND 13

7KH PDLQ VRXUFHV RI LQIRUPDWLRQ IRU 7KDL ƄUPV DUH Firms collaborate with public research institutions WKRVHSHUVRQVHQWLWLHVZLWKZKLFKƄUPVLQWHUDFWRQD primarily for training employees and through meetings URXWLQH EDVLV HJ FOLHQWV HPSOR\HHV SDUHQW ƄUPV RU FRQIHUHQFHV ƄJXUH} DQG WR D OHVVHU H[WHQW local suppliers, competitors) in addition to the Internet. through the use of analytical and testing services, More sophisticated sources of information such as informal personal contacts and the hosting of patent disclosures, public research institutions and students. This pattern of collaboration does not vary universities or business service providers are much ZLWKƄUPVL]HEXWWKHUHDUHZLGHJDSVEHWZHHQWKH OHVVLPSRUWDQWIRU7KDLƄUPV SURSRUWLRQRIODUJHDQGVPDOOƄUPVXQGHUWDNLQJHDFK of the activities. For instance, the proportion of larger 7RLQQRYDWHƄUPVDUHOLNHO\WRFROODERUDWHPRUHZLWK market actors (e.g. customers, suppliers, parent ƄUPV XVLQJ DQDO\WLFDO DQG WHVWLQJ VHUYLFHV RU WKH technical infrastructure of public research institutes is or associated companies). Next, they collaborate with knowledge-generating institutions (universities DWOHDVWWLPHVWKDWRIVPDOOHUƄUPV and public research institutions) and professional 1HDUO\KDOIRIODUJHƄUPVDQGRQHƄIWKRIVPDOORQHVKRVW DQG LQGXVWU\ DVVRFLDWLRQV 6PDOOHU ƄUPV WHQG WR XQLYHUVLW\VWXGHQWLQWHUQVKLSV ƄJXUH} %XVLQHVVHV collaborate more with competitors, local suppliers also collaborate with universities to train employees and professional and industry associations than with through conferences or to use testing services, but XQLYHUVLWLHV)RUH[DPSOHDWKLUGRIƄUPV EXWRQO\D much less so with public research institutions. Firm ƄIWKRIVPDOORQHV UHSRUWHGVRPHW\SHRIFROODERUDWLRQ VL]HLQƅXHQFHVWKHSURSHQVLW\WRFROODERUDWHEXWQRW with universities and/or public research institutions. WKHSDWWHUQRIƄUPXQLYHUVLW\FROODERUDWLRQ

)LJXUH 7\SHVDQGH[WHQWRIFROODERUDWLRQRIƂUPVZLWKXQLYHUVLWLHVDQGSXEOLFUHVHDUFKLQVWLWXWLRQV(percentage)

With universities/higher education institutions With public research institutes Temporary personnel exchange Co-publishing Contracting out research projects Use of licensed technology Hiring of academic consultants Conducting joint research projects Use of technical infrastructure Hosting student internships Informal personal contacts or meetings Use of analytical and testing services Meetings or conferences Training of employees 0 5 10 15 20 25 30 35 Percentage

Source: UNCTAD, based on data from the National R&D and Innovation Survey, 2011.

$YHU\VPDOOSURSRUWLRQRIƄUPVPDNHXVHRIWKHGLIIHUHQW $JHQF\ 167'$ 2YHU}SHUFHQWRIODUJHƄUPVXVH public instruments19 available to support R&D and WKHP ZKLOH DURXQG } SHU FHQW RI VPDOOHU ƄUPV XVH LQQRYDWLRQ ƄJXUH} 0RUH ƄUPV SDUWLFXODUO\ ODUJHU WKHP2QWKHRWKHUKDQGVPDOOHUƄUPVPDNHJUHDWHU DQGPHGLXPVL]HGƄUPVXVHWKH%XUHDXRI,QYHVWPHQW use of NSTDA’s loans and grants than larger ones. The instruments and the testing and analytical services of Industrial Technology Assistance Programme (ITAP) is the National Science and Technology Development DOVRUHODWLYHO\LPSRUWDQWIRUVPDOOHUƄUPV 14 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

)LJXUH 3XEOLFVHUYLFHVDQGLQFHQWLYHVXVHGE\SULYDWHƂUPV(percentage)

Large firms Medium-sized firms Small firms Percentage 0 2 4 6 8 10 12 14 BOI: Investment promotion for high tech investment BOI: Skill, Technology and Innovation NSTDA: Testing and analytical services NSTDA: ITAP NSTDA: Contracting of research/ joint research NSTDA: Intellectual property services NSTDA: Loans and grants NSTDA: R&D tax NSTDA: Company directed technology development program R&D funding support from TRF NIA: Technical support NIA: Other measures e.g. innovation awards NSTDA: Technology business incubators R&D funding support from NRCT NSTDA: Technology licensing office services NSTDA: Office rental in Thailand Science Park NSTDA: Software park services R&D funding support from ARDA NIA: Technology capitalization NIA: Good innovation zero interest NIA: Innovation cluster grant

Source: UNCTAD, based on data from the National R&D and Innovation Survey, 2011.

Structure of this STIP Review

Following this introduction of the broader socio- &KDSWHUV} DQG SURYLGH IXUWKHU LQVLJKWV LQWR WZR economic conditions that have shaped the DVSHFWV RI 67, &KDSWHU} H[DPLQHV WKH DJULFXOWXUDO development of Thailand’s indigenous STI capabilities innovation system of Thailand from the perspective of DQG VNLOOV FKDSWHU} LGHQWLƄHV NH\ VWUHQJWKV DQG small-scale farmers, who produce the bulk of the key weaknesses of its national innovation system. The energy and food crops and represent a large share of chapter provides policy suggestions on options for the population whose welfare could improve through reinforcing the national innovation system, which LQQRYDWLRQGULYHQJURZWK&KDSWHU}DQDO\VHVLQPRUH would support the upgrading of the technological detail Thailand’s ability to educate and train the human and innovation capabilities necessary for Thailand to resources required to support the development of its escape the middle-income trap. productive capabilities. CHAPTER I : GENERAL CONTEXT OF SCIENCE, TECHNOLOGY AND INNOVATION IN THAILAND 15

NOTES

1 Source: Economist Intelligence Unit, January 2015.

2 UNCTAD calculations based on UNCTADstat

3 UNCTADstat

4 ,Q WKH ODUJHVW LPSRUWHUV IURP 7KDLODQG ZHUH &KLQD } ELOOLRQ WKH 8QLWHG 6WDWHV } ELOOLRQ -DSDQ }ELOOLRQ +RQJ.RQJ 6SHFLDO$GPLQLVWUDWLYH5HJLRQRI&KLQD }PLOOLRQ DQG0DOD\VLD }PLOOLRQ DQGWKH ODUJHVWH[SRUWHUVWR7KDLODQGZHUH-DSDQ }ELOOLRQ &KLQD }PLOOLRQ WKH8QLWHG$UDE(PLUDWHV }PLOOLRQ WKH8QLWHG6WDWHV }PLOOLRQ DQG0DOD\VLD }PLOOLRQ 81&7$'VWDW

5 See, for example, Doner et al., 2013; Intarakumnerd et al., 2010.

6 National Competitiveness Plan, 2003.

7 Food, automotive, fashion, tourism and software.

8 In 2014, Thailand advanced its ranking to 31st position in the Global Competitiveness Index (GCI) despite an unstable political environment.

9 See, for example, Felipe, 2012.

10 'HƄQHGDVWKHSHUFHQWDJHRIWKHSRSXODWLRQDWWKHQDWLRQDOSRYHUW\OLQHDVRSSRVHGWRWKHLQWHUQDWLRQDOSRYHUW\OLQHV of $1.25 or $2 (purchasing power parity) per day.

11 See also World Bank, at: www.worldbank.org/en/country/thailand/overview.

12 7KH6 7ODERXUIRUFHFRPSULVHVDOOWKHODERXUIRUFHZRUNLQJLQ6 7ƄHOGV ZKHWKHURUQRWWKH\KDYHJUDGXDWHGLQ 6 7 SOXVJUDGXDWHVLQ6 7ZRUNLQJLQRWKHUƄHOGVDVZHOODVXQHPSOR\HG6 7JUDGXDWHV

13 6&,PDJR-RXUQDODQG&RXQWU\5DQNDWKWWSZZZVFLPDJRMUFRPFRXQWU\UDQNSKS

14 7KHKLQGH[LVDFRXQWU\pVQXPEHURIDUWLFOHV K WKDWKDYHUHFHLYHGDWOHDVWKFLWDWLRQV,WTXDQWLƄHVERWKFRXQWU\ VFLHQWLƄFSURGXFWLYLW\DQGVFLHQWLƄFLPSDFW

15 %DVHGRQ1DWLRQDO67,3ROLF\2IƄFHDQG81(6&2,QVWLWXWHIRU6WDWLVWLFV

16 The technology balance of payments is the difference between the receipts and payments of Royalty and licence fees plus consulting and technical fees.

17 %DVHGRQGDWDSXEOLVKHGLQ1DWLRQDO67,3ROLF\2IƄFH

18 Quality control and testing activities, while they may require technology, are not innovation activities (except when a TXDOLW\FRQWURORUWHVWLQJSURFHVVLVƄUVWLQWURGXFHGE\DƄUP

19 These statistics should be interpreted with caution. The 2011 survey did not cover a number of public services and LQFHQWLYHVDYDLODEOHDWWKHWLPH HJWKRVHSURYLGHGE\WKH0LQLVWU\RI,QGXVWU\DQGWKH7KDLODQG,QVWLWXWHRI6FLHQWLƄF DQG7HFKQRORJLFDO5HVHDUFKRU7,675 RUWKHQHZHULQQRYDWLRQFRXSRQ VHH&KDSWHU}

Thailand’s innovation system: Critical observations and policy recommendations 18 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

A. THE RATIONALE intensive economic activities, while still lacking the technological know-how and human capacity to FOR FOSTERING progress into more sophisticated higher value-added INNOVATION activities. 7KDLODQG KDV VHHQ D VLJQLƄFDQW LQFUHDVH LQ SHU $W WKH VDPH WLPH 7KDLODQG IDFHV PDMRU SUREOHPV FDSLWDLQFRPHRYHUUHFHQWGHFDGHV ƄJXUH} EXW relating to social inclusiveness and environmental is now experiencing a slowdown in GDP and total sustainability. These combined economic, social IDFWRU SURGXFWLYLW\ JURZWK ƄJXUHV} DQG and environmental concerns and the challenge of The country risks falling into the so-called “middle- governance and public management are considered income trap”1 DQG LW ZLOO ƄQG LW LQFUHDVLQJO\ GLIƄFXOW in the 11th National Economic and Social Development to compete against lower cost locations in less skill- 3ODQŸ 1(6'% ƄJXUH}

)LJXUH 7KDLODQGpVORQJWHUPGHYHORSPHQWVWUDWHJ\

Growth & Getting Competitiveness out of the middle- income trap Improved infrastructure, Human security, human development R&D, and productivity and quality of life Better governance Impoving and public internal management process

Increasing Reducing Environmental Green Growth Inclusive social friendliness Growth disparity

Regulations

Source: Wanichkorn, 2013.

To tackle these multiple challenges, it is imperative of the “sophistication spectrum”, it could refer to the that efforts be made to improve the country’s development of entirely new technologies, such as innovation capabilities. Innovation refers to the biofuels based on biomass, that require long-term actions taken by economic actors to upgrade their R&D and large-scale experimentation. technological level, enhance their organization and production methods, develop new activities ,QQRYDWLRQDFWLYLWLHVDUHFDUULHGRXWSULPDULO\E\ƄUPV and enter new markets. Innovation is much more but within a broader system comprising public and than R&D; it also encompasses the adoption and private agents (e.g. research centres, academic and dissemination of known technologies, as well as the training institutions, public ministries and funding development of new ones. For instance, in agriculture, agencies) that generate and intermediate knowledge innovation may mean farmers’ use of available DQGWHFKQRORJ\ƅRZVDQGWKLVLVFRPPRQO\UHIHUUHG mechanization processes, but also, at the other end to as an innovation system.2 CHAPTER II : THAILAND’S INNOVATION SYSTEM: CRITICAL OBSERVATIONS AND POLICY RECOMMENDATIONS 19

As innovation is much more than R&D alone, innovation compared with other Asian countries of similar size policies go far beyond research policies or S&T policies; and development level. For example, according to they also involve policies concerning entrepreneurship the Global Innovation Index, Thailand trails far behind promotion, industrial reform, market competition and the Republic of Korea and Singapore (top world skills development. Thus, the promotion of innovation performers), but it is also behind Malaysia, while Viet requires governance structures that accord innovation 1DPLVUDSLGO\FDWFKLQJXS WDEOH} 7KHWUDGLWLRQDO policy the stature and cross-ministerial reach needed indicator of investment in R&D as a percentage of GDP to place innovation at the forefront of policy efforts and is remarkably low for a country at a relatively advanced ensure policy coordination. VWDJH RI GHYHORSPHQW } SHU FHQW ƄJXUH} The relative weakness of Thailand’s innovation system Industry surveys also show limited sophistication of LV UHƅHFWHG LQ VHYHUDO LQWHUQDWLRQDO EHQFKPDUNLQJ innovation, particularly among Thailand’s SMEs (see exercises which show its modest performance FKDSWHU}

7DEOH ,QQRYDWLRQSHUIRUPDQFHDFFRUGLQJWRWKH*OREDO,QQRYDWLRQ,QGH[VHOHFWHG$VLDQFRXQWULHV

Singapore Rep. of Korea Malaysia Thailand Viet Nam Indonesia Philippines

*OREDO,QQRYDWLRQ,QGH[ $% 59.2 55.3 45.6 34.9 31.8 29.9

,QQRYDWLRQRXWSXWVXELQGH[ $ 44.9 48.4 38.7 34 31.2 26.8

,QQRYDWLRQLQSXWVXELQGH[ % 73.6 62.2 52.5 35.8 32.4 32.9

,QQRYDWLRQHIƂFLHQF\UDWLR $% 0.61 0.78 0.74 0.95 1 0.8 Source: Cornell University et al., 2014.

+RZHYHU 7KDLODQG KDV VLJQLƄFDQW DVVHWV WR HQDEOH pointing out obstacles to innovation. Second, it it to become an innovative economy: a number of reviews government actions in key policy domains that competitive industries, notably in automotive and have had an impact on its innovation performance, electronic components, an agricultural sector that identifying strengths but also shortcomings. Based makes it a leading world exporter of several products RQWKLVDQDO\VLVWKHƄQDOVHFWLRQRIIHUVDVHWRISROLF\ (e.g. rice, rubber, sugar and chicken), and a growing recommendations. Many of these are relevant, not only services sector. The country also possesses a sizeable for national policymakers, but also for other national research infrastructure, a reasonably developed higher stakeholders, and will require their participation in education system and a large network of vocational policy design and implementation. schools. Innovation systems are not static; they can be B. THE INNOVATION LQƅXHQFHG E\ SROLF\ DFWLRQV 67, SROLFLHV VWLPXODWH technological learning by building the capabilities CLIMATE: TRENDS of the different agents and by fostering interactions AND ISSUES among them through an enabling environment and The capabilities and organization of an innovation appropriate incentives. Since the 1960s, successive V\VWHP DUH LQKHUHQWO\ LQƅXHQFHG E\ WKH JHQHUDO Thai governments have launched policy initiatives conditions in which an economy operates and society LQ GLIIHUHQW ƄHOGV 5 ' HGXFDWLRQ DQG LQGXVWU\ WKDW functions. Thus, to better understand the capabilities have contributed to improving national innovation DQG EHKDYLRXU RI LQQRYDWLRQ DFWRUV WKLV VHFWLRQ ƄUVW capabilities. EULHƅ\SUHVHQWVWKHVHFRQGLWLRQV This chapter looks at the opportunities for policy to enhance Thailand’s national innovation system. First, it discusses the current innovation climate, looking at )UDPHZRUNFRQGLWLRQV the capabilities of key actors – businesses, research The overall political and institutional framework in and technology organizations and educational Thailand is challenging for the business environment establishments – and their interactions, especially and for innovation activity (WEF, 2013; Cornell University 20 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

et al., 2014; EIU, 2014). Political instability, short-lived ranks poorly in global benchmarking indicators, such governments and the resulting lack of continuity of DV ,&7 DFFHVV DQG XVH ZLWK OHVV WKDQ } SHU FHQW policies have weakened the ability of public institutions of the population using the Internet (WEF, 2013). This to provide an enabling environment for businesses, is largely because the poor rural ICT infrastructure DQG HTXDOO\ LPSRUWDQW WR VWHHU DQG VXVWDLQ PDMRU limits ICT access and use by a large segment of the reforms over time. Cumbersome and non-transparent SRSXODWLRQDVQRWHGLQFKDSWHU} bureaucratic procedures and a challenging regulatory On the positive side, Thailand offers very good environment (in particular law enforcement) are also conditions for innovation in several areas. It has an hampering innovation efforts by constraining the design open economy with a high proportion of high-tech and implementation of effective long-term development imports and exports, and a substantial and competitive strategies, and by obstructing and making innovation 4 industrial sector, which, despite being dominated by E\ƄUPVPRUHFRVWO\ TNCs, provides substantial technological learning Thailand’s overall economic situation, which is opportunities. The business environment is also characterized by sound, though uneven, economic conducive to innovation. In 2014, Thailand ranked 18th growth rates and by very low levels of unemployment, (out of 189 countries) in the Business Index (World has not been conducive to innovation. Conformism Bank, 2013) and 31st (out of 148 countries) in the among business leaders and policymakers has Global Competitiveness Index (WEF, 2014). discouraged the implementation of strategic reforms The higher education and research infrastructure, and technological upgrading efforts by the private including a dozen high quality universities, provides sector. In the absence of strong pressure for change DVLJQLƄFDQWVFLHQWLƄFEDVH7KHQXPEHURIVFLHQWLƄF DQG ZLWK VROLG FRQƄGHQFH LQ WKH FRXQWU\pV DELOLW\ WR publications has increased tenfold, from about 1,200 recover from serious economic downturns (e.g. the LQWRPRUHWKDQLQZKHQ}SHU $VLDQƄQDQFLDOFULVLVRI 7KDLOHDGHUVDUH cent of the papers were co-authored with foreign inclined to operate in their comfort zone. 5 authors. 3 $WKLUGPDMRUSUREOHPLVWKHJHQHUDOOHYHORIHGXFDWLRQ Finally, Thailand’s public administration has competent The steady and substantial increase in student RIƄFLDOV ZLWK VXIƄFLHQW DFFHVV WR LQIRUPDWLRQ DQG participation at all levels has not been accompanied exposure to international practices to be able to E\VLJQLƄFDQWLPSURYHPHQWVLQOHDUQLQJSHUIRUPDQFH formulate coherent STI policies and programmes. Basic education performance is weak, according to The country also has well-informed think tanks as international assessments, such as the Programme well as proactive business associations such as the of International Student Assessment (PISA) and the Federation of Thai Industries and the Thai Chamber Trends in International Maths and Science Study of Commerce. (TIMSS) of the Organisation for Economic Co-operation and Development (OECD). Thailand is trailing behind most East Asian countries in these assessments. A 7KHSURGXFWLYHVHFWRU large segment of the population lacks basic reading, 7KHPDMRULW\RISULYDWHVHFWRUƄUPVDUHQRWRULHQWHG writing, and science and math skills, even though WRZDUGVLQQRYDWLYHDFWLYLW\7KHSURSRUWLRQRIƄUPV WKHHGXFDWLRQEXGJHWDFFRXQWVIRU}SHUFHQWRI engaged in innovation is relatively small: less than the total government budget. While Thailand’s S&T }SHUFHQWRIPDQXIDFWXULQJDQGVHUYLFHVƄUPVŸ education at the tertiary level has notably expanded FRPSDUHGWR}SHUFHQWRUPRUHLQ2(&'FRXQWULHV VHHFKDSWHU} LWLVQRWDGHTXDWHLQWHUPVRITXDOLW\ Ÿ DUH FRQVLGHUHG WR EH LQQRYDWLYH WDEOH} or quantity to meet the requirements of the economy, Nevertheless, there has been progress over time, and this is hampering technological upgrading. An ZLWK WKH SURSRUWLRQ RI LQQRYDWLYH ƄUPV GRXEOLQJ important gap also exists in intermediary technological between 2008 and 2011. The most innovative competences, such as those provided by professional PDQXIDFWXULQJƄUPVDUHLQWKHFKHPLFDOHOHFWURQLFV and technical schools. food, rubber, machinery, and oil and gas industries.6 $ IRXUWK LVVXH LV WKH LQVXIƄFLHQW GHYHORSPHQW DQG ,QWKHVHUYLFHVVHFWRUDSDUWIURPWKHƄUPVGHGLFDWHG use of the ICT infrastructure. ICTs are the backbone to R&D, the most in-house R&D is conducted by RI D NQRZOHGJHEDVHG HFRQRP\ MXVW DV URDGV DQG ƄUPV HQJDJHG LQ ZKROHVDOH DQG UHWDLO WUDGH DQG UDLOZD\V DUH IRU LQGXVWULDOL]DWLRQ +RZHYHU 7KDLODQG computer services. CHAPTER II : THAILAND’S INNOVATION SYSTEM: CRITICAL OBSERVATIONS AND POLICY RECOMMENDATIONS 21

7DEOH 3HUFHQWDJHRILQQRYDWLYHƂUPVLQPDQXIDFWXULQJDQGVHUYLFHVŶ

Total

/DUJHƂUPV 11.84 22.63 34.59

0HGLXPVL]HGƂUPV 7.21 11.69 27.41

6PDOOƂUPV 2.75 5.87 25.67

Source: 5 'DQG,QQRYDWLRQ6XUYH\VFRQGXFWHGE\167'$ DQG 1DWLRQDO67,3ROLF\2IƄFH Note: The 2003 survey had 2,583 respondents, the 2008 survey had 3,533 and the 2011 survey had 4,252. Results of 2011 are not fully comparable with those of 2003 and 2008, as in 2011 the sample covered was both widened (to include the trading sector) and deepened (to cover four digit industries).

In some respects Thailand has a dynamic SME sector.7 Foreign investors, which constitute the backbone Compared with countries at a similar stage of economic RI 7KDL LQGXVWU\ KDYH FRQWULEXWHG VLJQLƄFDQWO\ WR development, it has a high rate of entrepreneurial LPSURYH WKH TXDOLƄFDWLRQV RI WKH ODERXU IRUFH EXW activity. Individuals become entrepreneurs because they have played a limited role in technology transfer they see opportunities rather than out of necessity, and in strengthening the technology capabilities of and women participate in business ventures to the GRPHVWLF ƄUPV 7HFKQRORJLFDO LPSURYHPHQWV KDYH VDPHH[WHQWDVPHQ *(0HWDO +RZHYHUWKH generally been achieved through the acquisition of SME sector is not particularly technology-intensive or imported equipment in the context of production and innovative, and consists mainly of consumer-oriented export agreements with TNCs. Technology transfer businesses (GEM et al., 2012) with limited exposure to is limited to the operational level, as TNCs tend to international trade.8 SMEs play a smaller role than larger WUDLQZRUNHUVWRSURGXFHJRRGVHIƄFLHQWO\UDWKHUWKDQ ones in the country’s exports.9 Moreover, they tend to equipping them with engineering and design skills be followers, providing the same products as existing 2(&' D +RZHYHUD QXPEHU RI 71&V businesses. The drive for entrepreneurship is hindered have started to develop R&D facilities in the country. by a fear of failure and by the ample opportunities For example, the Toyota Technical Development DYDLODEOH WR DFFHVV VDODULHG MREV 7KH 7KDL 2IƄFH &HQWHU$VLD3DFLƄF 7KDLODQG VSHFLDOL]HVLQPDWHULDOV RI 60(V 3URPRWLRQ 260(3 QRWHV GLIƄFXOWLHV LQ development, vehicle testing and design to meet achieving greater ratios of exporting SMEs, enhancing regional needs. the total factor productivity and labour productivity $ QXPEHU RI QHZ WHFKQRORJ\EDVHG ƄUPV KDYH of manufacturing SMEs and expanding the weight, emerged, but, apart from some emblematic examples creativity and competences of SMEs in the services HJ)OH[R5HVHDUFKVHHER[} IHZKDYHVXFFHHGHG sector. in capturing new markets or expanding in size. Several /DUJHUƄUPVWHQGWRHQJDJHPRUHLQLQQRYDWLRQEXW UHDVRQVH[SODLQWKHOLPLWHGGHYHORSPHQWRIVXFKƄUPV their level of involvement varies depending on their • The pool of potential entrepreneurs is relatively VHFWRU RI RSHUDWLRQ DQG RQ WKHLU ƄQDQFLDO UHVRXUFHV small – SME density is below the OECD average Large food processing groups, under pressure from (OECD, 2011: 28) and the rate of enterprise domestic demand and foreign competition, are creation per population is relatively low10– and investing increasingly in R&D so as to diversify their scientists, engineers or managers prefer to work in products and increase their export capabilities. The public agencies or large businesses. State enterprise PTT, Thailand’s largest and leading petrochemical company, has invested in various • The competitive climate is not very open; for instance, some public procurement markets, such WHFKQRORJ\ƄHOGV HJGHHSZDWHUH[SORUDWLRQELRJDV as for vaccines and blood testing, continue to be ELRSODVWLFV DQG KDV ODXQFKHG VLJQLƄFDQW LQQRYDWLYH reserved for importers of foreign products.11 institutions, including several of public interest (e.g. an energy academy for public information, a research • 7KH YHQWXUH FDSLWDO PDUNHW LV LQVXIƄFLHQWO\ university and a leadership institute) with an S&T developed, and the banking and credit system budget three times larger than that of the Ministry of is reluctant to invest in risky businesses (Cornell Science and Technology (MOST). University et al., 2014; Wonglimpiyarat, 2013). 22 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

• Support provided to entrepreneurs is inadequate; for agricultural innovation. These challenges are for instance, there are some 60 incubators GLVFXVVHGLQGHWDLOLQFKDSWHU} operating throughout the country, but only about a dozen are considered effective.12 3XEOLFUHVHDUFKDQGWHFKQRORJ\ Despite Thailand’s structural transformation, the RUJDQL]DWLRQV DJULFXOWXUH VHFWRU VWLOO HPSOR\V } SHU FHQW RI WKH labour force. It is largely characterized by labour- The public research structure is well developed, but intensive farming on smallholdings and rain-fed crop it also presents various weaknesses. Over the years production. A number of factors have prevented a number of public bodies have been established, greater innovation in the farming sector. First, the UHSRUWLQJWRGLIIHUHQWPLQLVWULHVDQGDJHQFLHV WDEOH} lack of pressure to upgrade, as the export of crops There are public research institutes involved in basic has remained easy due to their good quality and research (including mega-sciences such as space and low production costs or because of subsidies for nuclear), four centers devoted to high technologies certain producers (e.g. for rice, sugar and cassava). and established in the Thailand Science Park near Second, weaknesses persist in maintaining effective %DQJNRNDQGDVHULHVRIVHFWRUVSHFLƄFWHFKQRORJ\ FKDQQHOV IRU WKH GLIIXVLRQ RI EHQHƄWV IURP 67, organisations, notably for industrial purposes. Most resources (which tend to be concentrated in and of these organisations suffer from two syndromes: around Bangkok) to farmers and a lack of feedback they are too thin in terms of budget; and they tend of information to planners and researchers about to be inward oriented (that is, they focus mostly on farmers’ needs and experiences. Third, there is an knowledge accumulation activities and pay little absence of strategic mechanisms to ensure the DWWHQWLRQWRWHFKQRORJ\WUDQVIHU tDWUDLWFRQƄUPHGE\ effectiveness and cohesion of agricultural R&D. the very low level of contract funding in their budget. Lastly, there is inadequate long-term planning University research structures also suffer from these and lack of cohesion in multi-stakeholder efforts LQVXIƄFLHQFLHV

7DEOH 0DLQSXEOLFUHVHDUFKDQGWHFKQRORJ\RUJDQL]DWLRQV

%XGJHW PLOOLRQVRIEDKW Personnel

0DMRUVFLHQFHLQVWLWXWHV VXSSRUWHGE\WKH0LQLVWU\RI6FLHQFHDQG7HFKQRORJ\

National Science Museum 777 ..

National Institute of Metrology Thailand approx. 200 govt. funding + 135 specialists + 65 support staff DSSUR[UHYHQXH

Thailand Institute of Nuclear Technology .. ..

Hydro and Agro Informatics Institute .. 3 R&D staff, 38 support staff

National Synchrotron Light Research Institute .. ..

Thailand Centre of Excellence for Life Sciences .. ..

Geo-informatics and Space Technology Development Operating budget approx. 5 'VWDII Agency }PLOOLRQ JRYW IXQGLQJUHYHQXH

National Astronomical Research Institute of Thailand 90 staff

2IƂFHRI$WRPVIRU3HDFH .. ..

National Innovation Agency ..

7KDLODQG,QVWLWXWHRI6FLHQWLƂFDQG7HFKQRORJLFDO approx. 1 000 government budget + 1 100 (800 researchers, 200 services 5HVHDUFK 5 'DQGLQGXVWULDOVHUYLFHV DSSUR[UHYHQXH VWDII

'HSWRI6FLHQFH6HUYLFHV WHVWLQJDFFUHGLWDWLRQ .. CHAPTER II : THAILAND’S INNOVATION SYSTEM: CRITICAL OBSERVATIONS AND POLICY RECOMMENDATIONS 23

7DEOH 0DLQSXEOLFUHVHDUFKDQGWHFKQRORJ\RUJDQL]DWLRQV(continued)

%XGJHW PLOOLRQVRIEDKW Personnel

+LJKWHFKUHVHDUFKFHQWUHV XQGHU167'$ VWDII 5 'VWDII National Center for Genetic Engineering and 5 'VWDIIRWKHUV %LRWHFKQRORJ\ %,27(& National Nanotechnology Center DSSUR[QRQGLUHFWLQFRPH 5 'VWDIIRWKHUV National Metals and Materials Technology Center 641 govt. funding; 14.8 5 'VWDIIRWKHUV WHFKQRORJLFDOVHUYLFHV National Electronics and Computer Technology Center .. .. Sector-related technology organisations Ministry of Industry Thailand Productivity Institute .. .. Thai-German Institute .. .. National Food Institute 6HOIƂQDQFHG 180 staff (50 training, 50 lab/testing, GDWDVHUYLFHVRWKHUV Thailand Textile Institute .. 80 0DQDJHPHQW6\VWHP&HUWLƂFDWLRQ,QVWLWXWH .. .. Thailand Automotive Institute (testing services and policy 6HOIƂQDQFHG approx. 182 staff (91 testing, 91 policy DGYLFH DQGWUDLQLQJ Electrical and Electronics Institute .. .. Institute for SME Development .. .. Iron and Steel Institute of Thailand .. .. Ministry of Agriculture Department of Agriculture .. .. Department of Rice (Bureau of Rice Research & .. .. 'HYHORSPHQW5LFH5HVHDUFK6WDWLRQV Department of Land Development .. .. Source: 81&7$'VHFUHWDULDWEDVHGRQ 'XURQJNDYHURMD &KXQKDYXWKL\DQRQDQG,QWDUDNXPQHUG%,27(& 07(&2KQR6($(81(76RQJVLYLODLDVZHOODVLQIRUPDWLRQSURYLGHGE\WKH67,3ROLF\2IƄFHDQG LQWHUYLHZVKHOGGXULQJƄHOGPLVVLRQVLQ2FWREHUDQG-XQH

The research and technology organizations (RTOs) SULYDWH VHFWRU $V ƄUPV KDYH OLWWOH LQYROYHPHQW LQ OLVWHG LQ WDEOH} DQG SDUWLFXODUO\ WKRVH RSHUDWLQJ R&D activities, these RTOs do not help build strong under the NSTDA, perform the bulk of industrial R&D capabilities in the business sector. Although research in Thailand. They tend to support the RTOs under the Ministry of Industry may have development of S&T knowledge and capabilities developed closer links with businesses, they operate on behalf of ƄUPV UDWKHU WKDQ VXSSRUWLQJ WKH at lower technology levels, focus their activities on accumulation of technological and innovative the provision of training and industrial services, and capabilities withinƄUPV ,QWDUDNXPQHUG %DVHG conduct limited R&D (Brimble and Doner, 2007). on a linear perception of the innovation process, Thai The RTOs that build technological and innovative RTOs are more entities for knowledge accumulation capabilities within ƄUPV VXFK DV WKH ,QGXVWULDO than channels for knowledge transfer and upgrading, Technology Research Institute (ITRI) of Taiwan Province as their staff members are generally more interested RI&KLQD ER[} IXQFWLRQRQGLIIHUHQWSULQFLSOHVVWURQJ in publishing their work than in its application. efforts aimed at technology transfer and assistance to Mechanisms for technology transfer to industry are ƄUPVV\VWHPDWLFVFRXWLQJRIWHFKQRORJLHVIURPDEURDG limited. Government sources provide most of the MRLQW SXEOLFSULYDWH 5 ' SURJUDPPHV DQG JUHDWHU funding, and scarcely any funding comes from the attention to the potential use and impact of R&D. 24 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

%R[ %XLOGLQJWHFKQRORJLFDODQGLQQRYDWLYHFDSDELOLWLHVZLWKLQƂUPV7KHFDVHRIWKH,QGXVWULDO7HFKQRORJ\ 5HVHDUFK,QVWLWXWH ,75, 7DLZDQ3URYLQFHRI&KLQD

Established in 1973, ITRI’s main aim has been to support Taiwan’s industrial development. It has played a decisive role in improving the competitive capabilities of Taiwanese industry using a strategy of foreign technology assimilation DQGWUDQVIHUWRORFDOƄUPVWKURXJKVSLQRIIV,WKDVSURPRWHGWHFKQRORJ\WUDQVIHUWKURXJKMRLQWHIIRUWVDQGPXWXDODQG FRQWLQXRXVOHDUQLQJ7KHQDWXUHRILWVVXSSRUWKDVYDULHGLQUHVSRQVHWRWKHQHHGVDQGFDSDELOLWLHVRIGRPHVWLFƄUPV )URPWKHVWRWKHHDUO\V,75,IRFXVHGRQGLIIXVLQJOHDGLQJIRUHLJQWHFKQRORJLHVDQGKHOSLQJƄUPVWRGHYHORS their capacity to assimilate and upgrade those technologies. It generated spin-offs from its R&D and used R&D consortia WR GHVLJQ SURWRW\SHV WKDW ZHUH VXEVHTXHQWO\ GHYHORSHG LQWR FRPPHUFLDO SURGXFWV E\ SDUWLFLSDWLQJ ƄUPV 6LQFH WKH ODWHVZKHQGRPHVWLFƄUPVKDGPDVWHUHGGHVLJQDQGHQJLQHHULQJWHFKQRORJLHVDQGVWDUWHGWRFDUU\RXWLQKRXVH 5 ',75,KDVVXSSRUWHGORFDOƄUPVLQGHYHORSLQJ5 'FDSDELOLWLHVDQGOHDGLQJHGJHSURGXFWV)RULQVWDQFHLWSURYLGHV incubation services for technology start-ups and has an “open lab” that allows SMEs to use ITRI’s R&D laboratory. The Institute has specialized in high-tech industries (e.g. optoelectronics, semiconductors and ICTs) by progressively investing in its successful R&D departments and closing down its unsuccessful ones. Its management understands WKH QHHGV DQG WHFKQRORJLFDO OHDUQLQJ SURFHVVHV RI ƄUPV DV VHYHUDO RI LWV ERDUG GLUHFWRUV DQG H[HFXWLYHV KDYH KDG extensive experience working in the private sector. ITRI is the industrial technology development arm of the Ministry of Economic Affairs, and there is a strong link between policy formulation, implementation and evaluation. Its funding has FRPHLQFUHDVLQJO\IURPWKHSULYDWHVHFWRUDQGIURPFRPSHWLWLYHELGGLQJSURMHFWV Source: Intarakumnerd, 2011; UNCTAD, 2014.

Converting Thai RTOs, such as NDSTA research domestic system), 30 enterprises are incubated, and centres, into ITRI-type institutions that promote 500 persons participate in its training programmes. R&D withinƄUPVZLOOEHFKDOOHQJLQJ,WZRXOGUHTXLUH An evaluation of its activities showed that 500 baht strong and sustained policy efforts, especially policy invested in it would bring a return of 6,000 baht in measures that encourage greater participation of the three years for the economy – which appears to be SULYDWHVHFWRULQ5 'ƄQDQFLQJ,QDGGLWLRQLWZRXOG quite high.16+RZHYHUWKHUDWLRQDOHIRUKDYLQJDSXEOLF be necessary to ensure that RTOs’ staff members institution engage in certain commercialization activities (through training or renewal) are interested and able to that compete, to some extent, with the private sector ZRUNZLWKƄUPVWKDW5 'FDSDELOLWLHVDUHGHYHORSHG is not clear. Synergies and complementarities with which respond to the needs of Thai industries,13 the private sector need to be demonstrated. TISTR’s and that industry is given a prominent role in the indiscriminate provision of services also increases the management and development of these centres. risk of dispersion and underinvestment. 0HWURORJ\ VWDQGDUGV DQG FHUWLƄFDWLRQ VHUYLFHV DUH provided by several organizations, including the (GXFDWLRQDODQGWUDLQLQJ 17 Department of Science Services and the National HVWDEOLVKPHQWV ,QVWLWXWHRI0HWURORJ\7KDLODQG+RZHYHUWKHGLYLVLRQ Thailand counts more than 150 tertiary educational of responsibilities among them is not clear, notably establishments,18 which encompass a wide range of FRQFHUQLQJFHUWLƄFDWLRQWDVNV(YHQPRUHFULWLFDODUH institutions19 with different purposes and varying levels the apparent shortage of resources and staff, and the of teaching quality and research activity. Nine research limited availability of testing and laboratory facilities universities account for the bulk of Thai publications in outside the central region of Bangkok.14 LQWHUQDWLRQDOSHHUUHYLHZHGMRXUQDOV20DQGWKHLUVFLHQWLƄF 7KH 7KDLODQG ,QVWLWXWH RI 6FLHQWLƄF DQG 7HFKQRORJLFDO productivity is moderate. The problem is that most of the Research (TISTR) – a State enterprise attached to universities, including those doing research, have very 0267 t SXUVXHV LQQRYDWLRQRULHQWHG 5 ' SURMHFWV few links with industry. Of greater concern is that they and also engages in commercialization activities. It produce graduates who very often lack the skills required has a large workforce of 1,100 employees (including by the economy. Nevertheless, there are some striking UHVHDUFKHUV DQGDVLJQLƄFDQWEXGJHWRI}ELOOLRQ exceptions that demonstrate that it is possible to provide EDKW LQFOXGLQJ}PLOOLRQEDKWIURPWKHSULYDWHVHFWRU quality education and have strong linkages with Thai RI ZKLFK } PLOOLRQ EDKW DUH IURP 377 3&/15 The industry. The King Mongkut’s University of Technology LQVWLWXWH ƄOHV DQ DYHUDJH RI SDWHQWV D \HDU LQ WKH 7KRQEXUL .0877 LVDVWULNLQJH[DPSOHRIWKLV ER[} CHAPTER II : THAILAND’S INNOVATION SYSTEM: CRITICAL OBSERVATIONS AND POLICY RECOMMENDATIONS 25

%R[ .LQJ0RQJNXWpV8QLYHUVLW\RI7HFKQRORJ\7KRQEXUL .0877

King Mongkut’s University of Technology Thonburi (KMUTT) has its origins in the Thonburi Technology Institute, a technical college founded in 1960. In 1998 the Institute became a university and in 2009 it was distinguished as a national research XQLYHUVLW\,QLWEHFDPHWKHƄUVW7KDLXQLYHUVLW\WREHLQFOXGHGLQWKH7LPHV+LJKHU(GXFDWLRQ:RUOG8QLYHUVLW\ Rankings (309th out of 400).

7KHXQLYHUVLW\KDVVWXGHQWV }SHUFHQWSRVWJUDGXDWHVDQG}SHUFHQW3K'VWXGHQWV DQGRYHUVWDII PHPEHUV DFDGHPLFDQGQRQDFDGHPLFVWDII ,WVDQQXDOEXGJHWLV}ELOOLRQEDKW}SHUFHQWIURPFHQWUDO government sources and the rest from fees and contracts with the business sector and other clients (for technical VHUYLFHV .0877KDVEDVHGLWVGHYHORSPHQWRQWHFKQLFDOH[FHOOHQFHDQGKLJKLPSDFWUHVHDUFK,WVPDLQƄHOGVRI specialization include agriculture, food, biotechnology, pharmaceuticals and life sciences, which are supported by 100 research units and laboratories.

The university has developed strong linkages with industry through the promotion of cooperative education – education SURJUDPPHVWKDWLQFOXGHVRPHWUDLQLQJLQƄUPVtDQGWKHSURYLVLRQRIVHUYLFHVWRƄUPV.0877KDVEHHQDSLRQHHULQ WKHLPSOHPHQWDWLRQRIHQJLQHHULQJSUDFWLFHVFKRROVLQWKHFKHPLFDODQGIRRGLQGXVWULHVDWWKHJUDGXDWHOHYHO ER[} 7RVHUYHLQGXVWU\QHHGVLWKDVHVWDEOLVKHGVHYHUDOPDMRUIDFLOLWLHV7KH3LORW3ODQW'HYHORSPHQWDQG7UDLQLQJ,QVWLWXWH (with a staff of 500, including 140 teachers and researchers) provides testing facilities for the biotechnology industry and serves as a practice school. The National Biopharmaceutical Facility, launched in 2014 with an investment of }ELOOLRQEDKWDLPVWRSOD\DNH\UROHLQWKHGHYHORSPHQWRIYDFFLQHVIRUWKHUHJLRQDOPDUNHWRIWKH$VVRFLDWLRQRI South-East Asian Nations (ASEAN).

2QHPDMRUSUREOHPLVWKHOLPLWHGHQWUHSUHQHXULDODFWLYLW\GLUHFWO\JHQHUDWHGE\.08776RIDULWVWHFKQRHQWUHSUHQHXU programme has generated limited interest among students, and few spin-offs have emerged from the university and its industry-related facilities. Furthermore, there is little activity in the industrial campus built around the university.

Source: 81&7$'EDVHGRQƄHOGLQWHUYLHZVLQ2FWREHU VHHZZZNPXWWDFWK

The vocational school system in Thailand is extensively VNLOOV ER[} +RZHYHU WKHVH LQLWLDWLYHV UHPDLQ developed through private and public networks. isolated cases. 71&VpQHHGIRUDTXDOLƄHGZRUNIRUFHKDVFRQWULEXWHG WRWKLVGHYHORSPHQW$FRQVLGHUDEOHQXPEHURIƄUPV participate in the provision of formal training (through ,QWHUPHGLDU\RUJDQL]DWLRQV ERWK79(7DQGVNLOOVGHYHORSPHQWFRXUVHV +RZHYHU Intermediary organizations22 play a central role in today, the TVET system is not performing satisfactorily innovation systems. They act as a bridge between and is unable to provide an adequate supply of knowledge generating institutions, large and small WHFKQLFDO SURIHVVLRQDOV 7HDFKHUVp TXDOLƄFDWLRQV WKH ƄUPV XVHUV DQG RWKHU LQQRYDWLRQ DFWRUV IDFLOLWDWLQJ teaching methods and curriculum contents are ill- processes of knowledge brokering and transfer. In 21 adapted to industry needs. Thailand, intermediary organizations, except for the The overall performance of basic education is +DUG'LVN'ULYH,QVWLWXWH +'', ER[} KDYHSOD\HG unsatisfactory, with weak national results in maths a limited role in promoting technological development. and science. Educational approaches that promote Public research and technology organizations have analytical thinking and entrepreneurship skills are tended to focus more on their own research than not widely used. Government initiatives to replace on playing any intermediary role. Private sector traditional teaching methods based on rote learning associations have traditionally focused on lobbying with methods that foster analytical and critical IRU VSHFLƄF SROLFLHV DQG SURWHFWLRQ UDWKHU WKDQ RQ WKLQNLQJ KDYH EHHQ LQVXIƄFLHQW VR IDU &LYLO VRFLHW\ promoting the technological development of their has launched some bold initiatives. For example, the industry.23 Farmer cooperatives mostly focus on Mechai Pattana School emphasizes entrepreneurial, SURYLGLQJIDUPHUVZLWKDFFHVVWRƄQDQFHZKLOHWKH\ social and environmental activities along with teaching disseminate information to individual farmers, they maths, science, English and other basic cognitive have not been a channel for technology diffusion.24 26 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

%R[ 7KH+DUG'LVN'ULYH,QVWLWXWH

7KDLODQG KDV EHFRPH D JOREDO FHQWUH IRU WKH PDQXIDFWXUH RI KDUG GLVN GULYHV 7KH LQGXVWU\ UHSUHVHQWHG } SHU FHQW RI the global market and employed around 200,000 workers in 2010. Four TNCs dominate production (Seagate Technology, :HVWHUQ'LJLWDO+LWDFKL*OREDO6WRUDJH7HFKQRORJ\DQG)XMLWVX DQGRYHUƄUVWWLHUWRWKLUGWLHUVXSSOLHUVRSHUDWHLQ7KDLODQG

,QWKHODWHV6HDJDWH7HFKQRORJ\RUJDQL]HGDORRVHFRQVRUWLXPZLWKƄYHXQLYHUVLWLHVLQFOXGLQJ6XUDQDUHH8QLYHUVLW\ RI7HFKQRORJ\ 687 WRWUDLQHQJLQHHUVFDSDEOHRIPDQDJLQJWKHƄUPpVKLJKO\DXWRPDWHGSURGXFWLRQIDFLOLWLHV6HDJDWH DOVRHVWDEOLVKHGMRLQW5 'FHQWUHVZLWKWZRXQLYHUVLWLHV .KRQ.DHQDQG687 ORFDWHGLQWKHQRUWKHDVWFORVHWRLWVPDMRU SURGXFWLRQIDFLOLWLHV7KHRUJDQL]DWLRQRIƄFLDOO\UHQDPHGLQDVWKH+DUG'LVN'ULYH,QVWLWXWH +'', KDVVXSSRUWHG the technological upgrading of the whole industry in Thailand, including improving training in engineering and developing visual inspection software. Most of the programmes implemented promote academic-industry consortia.

,QWKUHHOHDGLQJXQLYHUVLWLHVZHUHVHOHFWHGDQGIXQGHGE\+'',DVLQGXVWU\XQLYHUVLW\FRRSHUDWLYHUHVHDUFKFHQWUHV VSHFLDOL]HGLQWHDFKLQJDQGUHVHDUFKLQFULWLFDOƄHOGVRIKDUGGLVNGULYHWHFKQRORJLHV+'',IXQGHGUHVHDUFKSURSRVHGE\ WKHVHWKUHHUHVHDUFKFHQWUHVRQO\LIWKDWUHVHDUFKZDVMRLQWO\SURSRVHGZLWKSULYDWHFRPSDQLHVZKLFKZRXOGDJUHHWRMRLQWO\ IXQGWKDWUHVHDUFKZLWK+'',

8QGHU167'$+'',IXQFWLRQHGZHOODVDUHVRXUFHSURYLGHUDQGDEURNHU+RZHYHU167'$FRQVLGHUHGWKDWWKHGHYHORSPHQW RIWKHLQWHUQDOFDSDELOLWLHVRIƄUPVZDVVHFRQGDU\WRLWVRZQUHVHDUFK$VDUHVXOW+'',pVEXGJHWKDVEHHQFXW Source: Doner et al., 2013; Intarakumnerd and Chaoroenporn, 2013.

C. GOVERNMENT Ministry of Science and Technology, established in 1979, is the main entity, but a number of its POLICIES: INITIATIVES initial responsibilities have been gradually given to AND SHORTCOMINGS other ministries or to independent agencies and councils. Several other ministries are involved in STI ,QVWLWXWLRQDODUUDQJHPHQWVDQG policymaking, including the Ministries of Education, QDWLRQDO67,SODQV ,&7 ,QGXVWU\ &RPPHUFH $JULFXOWXUH DQG +HDOWK Their ministers are members of a National STI Policy A number of ministries and agencies, operating in a Committee, nominally chaired by the Prime Minister, context of loose cooperation and coordination, are and assisted by a number of independent experts and involved in developing policies related to STI. The KLJKOHYHOFLYLOVHUYDQWV ƄJXUH}

)LJXUH 7KDLODQGpV1DWLRQDO6FLHQFH7HFKQRORJ\DQG,QQRYDWLRQ3ROLF\&RPPLWWHH

Prime Chair Minister

Minister of Science Vice-Chair and Technology

Members Minister of Minister of Minister Minister Agriculture Information & Minister Minister of the of of of Public of and Communication Health Industy Commitee Cooperatives Technology Commerce Education

Chairman, Secretary Assistant Secretary National Research 11 independent experts (Permanent secretary for (Secretary General Council Executive Science and Technology of STI) Board

Source: 'XURQJNDYHURMD CHAPTER II : THAILAND’S INNOVATION SYSTEM: CRITICAL OBSERVATIONS AND POLICY RECOMMENDATIONS 27

The Ministry’s National Science Technology and environmental sustainability. The STI strategy is very ,QQRYDWLRQ3ROLF\2IƄFH 167,32 HVWDEOLVKHGLQ FRPSUHKHQVLYH DLPLQJ WR IXOƄO PXOWLSOH JRDOV DQG WR has elaborated a 10-year STI strategy25 that conforms LQFOXGHQXPHURXVDFWRUV DQQH[ $PELWLRXVREMHFWLYHV WRWKHWKUHHSLOODUVLGHQWLƄHGLQWKHQDWLRQDOGHYHORSPHQW KDYHEHHQƄ[HGLQWHUPVRIQDWLRQDO5 'H[SHQGLWXUHV plan: economic competitiveness, social inclusion and 5 'SHUVRQQHODQGSULYDWH5 'HIIRUWV WDEOH}

7DEOH 6WUDWHJLFREMHFWLYHVRIWKH1DWLRQDO67,3ROLF\DQG3ODQŶ

R&D as a percentage of GDP R&D personnel per 10 000 population Private vs. public funding

0.24 9 38/62

1.00 15

2.00 25 70/30 Source: National STI Policy and Plan 2012-2021.

Past experiences in Thailand indicate, however, that particularly active (see below), the National STI Policy policies, which are often well designed, encounter Committee has not been fully operational. Moreover, serious obstacles in their implementation. A weak and there is a lack of understanding and awareness about fragmented governance structure and the absence innovation among policymakers and decision makers. RIDVWUDWHJLFGULYHUKDYHEHHQWZRPDMRUVWXPEOLQJ Although innovation encompasses R&D, science and blocks to the implementation of the National STI Policy. technology, and intellectual property, innovation policy The next section discusses in more detail the main is restricted to R&D or science and technology, or is governance issues that affect the overall functioning of viewed as a component of research policy and not the STI system and key STI-related policies. the opposite. The predominant role provided to MOST under the National STI Policy Committee, and the fact that the Committee’s secretariat (the National STI *RYHUQDQFHLVVXHV 3ROLF\2IƄFH LVXQGHUWKHDGPLQLVWUDWLRQRI0267KDV perpetuated the perception that innovation is mainly The institutional structure in which the STI policy about S&T research. system operates is rather fragmented, and much more complex than suggested by the organization $VHFRQGPDMRUSUREOHPLVWKHSUROLIHUDWLRQRIERGLHV of the National STI Policy Committee (ƄJXUH} ). in charge of R&D funding and management. At least The organization chart (annex 1) describes the six bodies are involved in its funding, with tasks and PDLQ ƅRZV RI DXWKRULW\ DQG IXQGLQJ GLVWLQJXLVKLQJ UHVSRQVLELOLWLHV WKDW SDUWO\ RYHUODS WDEOH} (YHQ between policymaking bodies, funding agencies and more problematic for the governance of STI is that LPSOHPHQWLQJRUJDQL]DWLRQV7KLVUHYLHZLGHQWLƄHVVL[ some agencies combine functions of policy guidance, governance issues. funding and even management of research, leading to 7KHƄUVWDQGPDLQJRYHUQDQFHLVVXHLVWKHDEVHQFHRI FRQƅLFWVRILQWHUHVWDQGSUHYHQWLQJDFFRXQWDELOLW\)RU a strategic driver of STI policy. This situation is partly due example, NSTDA combines functions of funding and to the ineffective functioning of the National STI Policy managing research. This unusual situation generates Committee. The Committee, which was established numerous problems: duplication, lack of a critical in 2008, comprises the key ministers involved in mass, competition for funding and responsibilities, and 67, DQG LV FKDLUHG E\ WKH 3ULPH 0LQLVWHU +RZHYHU lack of accountability. To partly address some of these since the Prime Minister rarely chairs the Committee LVVXHVWKHVL[ERGLHVKDYHUHFHQWO\MRLQHGWRJHWKHULQ meetings,26 they are chaired by the Minister of Science meetings, led by the NRCT, to harmonize their decisions and Technology (Vice-Chairman of the Committee). and interventions. As they meet regularly with the Prime This undermines any sense of ownership among other Minister, the group has become the de facto organ ministers – a typical but highly undesirable situation managing R&D policy, superseding, to a certain extent, given the cross-departmental nature of STI policies. WKHMRERIWKHLQHIIHFWLYH1DWLRQDO67,3&RPPLWWHH7KLV As another body (the National Research Council of tends to have the negative consequence of reducing Thailand) reporting also to the Prime Minister has been STI policy to a research policy. 28 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

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R&D budget share Main responsibilities EURDGHVWLPDWHV

National Research Council of Oversees the national R&D policy, reports directly to the Prime Minister. }SHUFHQW Thailand

Thailand Research Fund Main body in charge of non-institutional research budget and scholar- }SHUFHQW PRVWO\ ships, the Talent Mobility Program and the Golden Jubilee PhD Program. FRQWUDFWIXQGLQJ

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Agriculture Research and Responsible for agriculture research funding and related public }SHUFHQW Development Agency UHVHDUFKVWUXFWXUHV $OORFDWHV}SHUFHQWRILWVEXGJHWWRHQKDQFHWKH (institutional and research capacity of MOAC. FRQWUDFWIXQGLQJ

Health System Research Fund In charge of health research funding and related public research }SHUFHQW LQVWLWXWLRQDO structures. DQGFRQWUDFWIXQGLQJ

2IƂFHRIWKH+LJKHU(GXFDWLRQ Responsible for research in universities }SHUFHQW LQVWLWXWLRQDO Commission DQGFRQWUDFWIXQGLQJ

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A third problem is the process of budget allocations the R&D). This approach, which derives from a concern WR WKH 5 ' DQG LQQRYDWLRQ V\VWHP DQG LQVXIƄFLHQW to have “everyone on board”, prevents prioritizing action monitoring, control and evaluation of programmes. The DQGDQHIƄFLHQWXVHRIWKHOLPLWHGUHVRXUFHVDYDLODEOH Bureau of the Budget (Ministry of Finance) allocates $ ƄIWK SUREOHP LV WKDW WKH EXVLQHVV VHFWRU LV QRW the budget on a yearly basis. It is supposed to evaluate VXIƄFLHQWO\LQYROYHGLQWKHSROLF\HODERUDWLRQSURFHVV the budget requests of ministries and agencies (in and in making strategic decisions. Its representative principle, examined and approved by the National organs, such as the Federation of Thai Industries and 67,3FRPPLWWHH WRHQVXUHWKHVHDUHMXVWLƄHGDQGWKDW the Thai Chamber of Commerce, are not adequately the concerned organizations have the capabilities to FRQVXOWHG )RU LQVWDQFH WKH\ DUH QRW RIƄFLDOO\ carry out the proposed work. But the Bureau lacks the represented at the top level of the National STI Policy competences and resources to seriously undertake Committee (as is the case in other countries such as such evaluations. Generally, budgets increase every )LQODQGŸER[}). The involvement of the business 27 \HDUIRUPRVWLWHPVE\DƄ[HGSHUFHQWDJH DQGƄQDO sector in STI policy design or R&D programme design allocations tend to be substantially less than the initial is largely ad hoc and based on personal connections. demands. A tactic often used to secure a budget A sixth governance issue is the proliferation of increase is to propose the creation of a new centre government bodies and entry points in the innovation or programme. This practice has encouraged the system that creates confusion, opacity and expansion of new structures/ programmes without misunderstanding among stakeholders (see section 3 reviewing/eliminating existing ones. below). This impacts the business sector, which is less A fourth problem is the tendency to elaborate plans familiar with the government machinery, and particularly consisting of extensive lists of actions, without SMEs, which have fewer resources to understand prioritization, that are not implemented. Often, this is and navigate the system. Consequently, personal because there are too many actions to implement or connections play a critical role for gaining access to the modalities for their implementation have not been GHFLVLRQPDNHUVVRXUFHVRIƄQDQFLQJDQGYDULRXVNLQGV VXIƄFLHQWO\ VSHFLƄHG HJ 5 ' ƄHOGV PD\ EH LGHQWLƄHG of support, thus increasing the possibilities of distorted and budgeted but no organization designated to carry out competition and privilege-based allocations. CHAPTER II : THAILAND’S INNOVATION SYSTEM: CRITICAL OBSERVATIONS AND POLICY RECOMMENDATIONS 29

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)LQODQGLVJHQHUDOO\UHFRJQL]HGDVDQLQQRYDWLRQOHDGHUZKLFKLWRZHVODUJHO\WRDQHIƄFLHQWJRYHUQPHQWSROLF\%XLOGLQJ on a solid R&D infrastructure, a high quality education system and a dynamic business sector, a national innovation SROLF\ZDVƄUVWGHSOR\HGLQWKHVDQGKDVEHHQUHƄQHGVLQFHWKHQ.H\HOHPHQWVLQFOXGHDSRZHUIXOFRRUGLQDWLQJ PHFKDQLVPDVWURQJOHDGDJHQF\DQGDQHIIHFWLYHWUDLQLQJLQVWUXPHQWIRUQDWLRQDOOHDGHUVFRPELQHGZLWKVLJQLƄFDQW regional and local decentralisation of policy implementation.

The main coordination mechanism is the Research and Innovation Council, established in 1987 as the Science and Technology Policy Council, to coordinate S&T policy and stimulate the overall innovation effort at a time when the country was experiencing a serious slowdown with the collapse of the Soviet Union, its main trading partner. The Research and Innovation Council, under the chairmanship of the Prime Minister, comprises concerned ministers, including the ministers in charge of education, industry, trade, science and, most importantly, the Minister of Finance in charge of the State budget. The Council also includes high-level representatives of the science community, the business sector, the trade unions and civil society. The Council meets twice a month, under the effective chairmanship of the Prime Minister, to discuss and decide on strategic issues, budget allocations and institutional questions.

$VHFRQGPDMRULQVWUXPHQWHVWDEOLVKHGDOVRLQWKHHDUO\VLVWKH)LQQLVK,QQRYDWLRQ$JHQF\NQRZQDV7(.(6 Positioned at the core of the innovation system and entirely funded by the Government, its main role is to promote all forms of R&D and innovation efforts based on cooperation between universities, and the public and private sectors, thereby facilitating the mobilization of all actors engaged in promising technological developments, from academic researchers WRYHQWXUHFDSLWDOLVWV7RDFFRPSOLVKLWVPLVVLRQ7(.(6XVHVDGLYHUVLƄHGVHWRILQVWUXPHQWVQRWDEO\PDWFKLQJIXQGLQJ VFKHPHVZLWKSULYDWHVHFWRUƄQDQFLDOHQJDJHPHQW,Q7(.(6VXSSRUWHGƄUPVDQG572VZLWK}PLOOLRQHXURVLQ IXQGV2IWKLVWRWDO}PLOOLRQHXURVZHUHDOORFDWHGWRFRPSDQ\SURMHFWVZLWK}SHUFHQWWDUJHWLQJ60(V2QDYHUDJH 7(.(6KDVDQHVWLPDWHGLPSDFWIDFWRURIWKDWLVRQHHXURIURP7(.(6WRƄUPVSURYLGHVHXURVLQDQQXDOWXUQRYHU 7KHWKLUGPDMRULQVWUXPHQWtWKRXJKQRWGLUHFWO\FRQFHUQLQJLQQRYDWLRQSROLF\SHUVHEXWZKLFKKDVSOD\HGDPDMRUUROH in creating a climate favourable to reforms – is a training programme for parliamentarians, business leaders, civil servants DQGWUDGHXQLRQLVWVHVWDEOLVKHGLQWKHVE\6,75$WKH5 'ƄQDQFLQJDUPRIWKH)LQLVK3DUOLDPHQW7KHREMHFWLYH LVWRLQIRUPNH\OHJLVODWRUVSROLF\PDNHUVDQGRSLQLRQOHDGHUVDERXWDQGLQYROYHWKHPLQPDMRUPDFURHFRQRPLFLVVXHV and fundamental policy questions, including those relating to STI. Thousands of persons have attended these high- level training and discussion sessions, which have been instrumental in facilitating reform processes in Finland and the economy’s adaptation to global opportunities and external shocks and pressures. Finally, Finland’s innovation policy has always had a vibrant regional and local dimension. Innovation policy is built on a PRGHORIGHFHQWUDOL]HGLPSOHPHQWDWLRQDOWKRXJKƄQDQFLDOUHVRXUFHVDUHUHODWLYHO\FHQWUDOL]HG1DWLRQDODJHQFLHVKDYH regional branches which enlist local authorities (municipalities, provinces) in pilot programmes. Local technology forums FRQYHQHƄUPVXQLYHUVLWLHVDQGRWKHUDFWRUVWRLGHQWLI\RSSRUWXQLWLHVWRGHYHORSLQWHUQDWLRQDOO\FRPSHWLWLYHFOXVWHUV Source: 81&7$'EDVHGRQ'DKOPDQHWDO:RUOG%DQNZZZVLWUDƄHQDERXWVLWUDWUDLQLQJ

,QQRYDWLRQSURPRWLRQVFKHPHV The National Innovation Agency (NIA), established in 2003, supports the development and 0DMRUHIIRUWVKDYHEHHQPDGHWRLQWURGXFHSURJUDPPHV commercialization of new products and processes WKDW SURYLGH SXEOLF ƄQDQFLDO VXSSRUW IRU LQQRYDWLRQ SURSRVHGE\LQGLYLGXDOLQYHQWRUVDQGƄUPVWKURXJKD DFWLYLWLHV E\ SULYDWH ƄUPV 0RUH WKDQ VFKHPHV V\VWHPRIJUDQWV ZKLFKKDYHWREHUHSDLGLIWKHSURMHFW promote innovation in the business sector. Managed by LV VXFFHVVIXO IXQGLQJ XS WR } SHU FHQW RI SURMHFW half a dozen ministries (and a dozen agencies operating costs. NIA provides funding averaging $20,000 per under ministries), they address various issues faced by SURMHFW WR DERXW SURMHFWV DQQXDOO\ VLQFH innovators, and provide support in the form of subsidies $ERXW}SHUFHQWRIWKRVHSURMHFWVKDYHUHDFKHGWKH (reimbursable in case of success) and grants (for small commercialization stage. In addition to its 40 staff, NIA investments).28 As a whole, however, the schemes are also seeks specialized advice from experts. It has no too fragmented and uncoordinated. They have a limited UHJLRQDORIƄFHV,WVFXUUHQWEXGJHWRI}PLOOLRQEDKW impact on innovation, leveraging little R&D and private supports three priority programmes and the Innovation sector funding for innovation, and involving a relatively Coupon programme. This latter programme, launched VPDOO QXPEHU RI FRPSDQLHV 7KH PDMRU VFKHPHV DUH recently, gives potential innovators vouchers for described below. research and technological services (e.g. feasibility 30 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

studies, testing, prototypes) to be performed by SURMHFWVRIDWRWDOYDOXHRI}ELOOLRQEDKWZLWKDQ university or government laboratories. Coupons DSSURYDOUDWHRISHUFHQW6PDOOƄUPVLQSDUWLFXODU cover funds of up to 100,000 baht for feasibility have shown interest in this scheme accounting VWXGLHV EDKW IRU SURMHFW GHYHORSPHQW DQG IRU } SHU FHQW RI WKH DSSOLFDWLRQV IRU WKH 5 ' }SHUFHQWRISURMHFWFRVWV7KLVSURJUDPPHZKLFK tax incentive. Despite its generosity, the use of the EHQHƄWHGDERXWƄUPVRYHUWKHSHULRG scheme as a whole has been modest in terms of both has stimulated interest in innovation and helped build WKHQXPEHURIƄUPVWKDWKDYHWDNHQDGYDQWDJHRILW linkages between the industrial and academic worlds. DQGWKHYDOXHRIWKHSURMHFWVGHYHORSHG33 The Government intends to scale it up considerably. The Board of Investment, responsible for both The Industrial Technology Assistance Program foreign and domestic industrial investors, has offered (ITAP), administered by NSTDA, assists enterprises a tax incentive scheme since 2006 to encourage LQWHFKQRORJ\GHYHORSPHQWSURMHFWV0RGHOOHGRQWKH investment in training, R&D and university-industry Canadian Industrial Research Assistance Program collaboration in selected industries: fashion, and established 17 years ago, it provides enterprises automotives and ICT. There are certain minimal with technological expertise, links them to competent requirements of this scheme, known as the Skills, sources, including from overseas, supports R&D Technology and Innovation Program, depending DFWLYLWLHV RUJDQL]HV WUDLQLQJ DQG IXQGV SURMHFWV RQ RQ WKH LQGXVWULDO ]RQHV LQ ZKLFK WKH YDULRXV ƄUPV a 50/50 basis. It has 10 regional nodes located in are located. For example, R&D expenses should universities and science parks. Since its inception, the UHSUHVHQWPRUHWKDQRU}SHUFHQWRIDQQXDOVDOHV SURJUDPPHKDVEHQHƄWHGRYHUHQWHUSULVHVDWD 0RUH WKDQ } SHU FHQW RI WKH EHQHƄFLDULHV RI WKLV WRWDOFRVWRI}PLOOLRQ7KHQXPEHURIƄUPVVHUYHG VFKHPH DUH -DSDQHVH ƄUPV DQG DOPRVW } SHU annually has increased steadily, reaching 883 in 2011. FHQWRIWKHEHQHƄFLDULHVDUHLQWKHDXWRLQGXVWU\7KH Thai business leaders and innovation experts consider LQFHQWLYHKDVEHHQPRGHUDWHO\XVHG2QO\SURMHFWV the programme to be highly useful.29 The Ministry of YDOXHG DW } ELOOLRQ EDKW KDYH EHHQ DSSURYHG ,QGXVWU\ KDV OHG WUDLQLQJ SURJUDPPHV IRU ƄUPV RQ since the establishment of the programme. The intellectual knowledge infrastructure and productivity administrative procedure to determine the incentives management which have reached some 95,000 to be offered requires a thorough investigation, is employees directly or indirectly.30 UDWKHU FXPEHUVRPH IRU WKH ƄUPV UHTXLULQJ DW OHDVW six months for approval, and it is very costly to The Government has established several funds to administer. This might have discouraged potential SURPRWH YHQWXUH FDSLWDO WRWDOOLQJ PRUH WKDQ } ELOOLRQ investors from taking advantage of it. baht, while venture capital from the private sector has DPRXQWHGWROHVVWKDQ}ELOOLRQEDKW :RQJOLPSL\DUDW The Thai Government may wish to consider reviewing 2013). The impact of those public funds has been the use and, more importantly, the impact of current limited; for instance, the Venture Capital fund tax schemes to promote R&D and innovation. It may DGPLQLVWHUHG E\ WKH 2IƄFH RI 60(V 3URPRWLRQ ZLWK be advisable to pay particular attention to their use } ELOOLRQ EDKW FDSLWDO KDV VXSSRUWHG HQWHUSULVHV DPRQJ DQG LPSDFW RQ 60(V ZKLFK RIWHQ EHQHƄW RYHU WKH SHULRG Ÿ EXW WKH\ KDYH FUHDWHG OHVVIURPWKHVHVFKHPHV%\QDWXUH60(VƄQGLWPRUH OHVVWKDQMREV :RQJOLPSL\DUDW 7KHUHLVD GLIƄFXOWWRƄQDQFH5 'DQGLQQRYDWLRQLQDGYDQFHDQG ODFNRISRWHQWLDOO\SURƄWDEOHJRRGLQQRYDWLYHSURMHFWV to deal with the bureaucratic procedures involved. and of competent business angels and coaches to Simplifying administrative procedures would be a step help develop new ventures, and only a small private in the right direction. HTXLW\ƄQDQFLQJPDUNHW31 5 'SURJUDPPHV 7D[,QFHQWLYHV32 Various public research institutions have launched a The Revenue Department offers a substantial tax VLJQLƄFDQWQXPEHURI5 'SURJUDPPHV)RUH[DPSOH LQFHQWLYHIRU5 'D}SHUFHQWGHGXFWLRQRI5 ' NIA hosts three innovation-oriented programmes, H[SHQVHV IURP WD[DEOH LQFRPH ZLWK D } SHU FHQW LQ ELRSODVWLFV ER[} RUJDQLF DJULFXOWXUH DQG allowance for machinery and equipment depreciation). manufacturing design; NCRT has initiated R&D 2YHU WKH SHULRG Ÿ WKLV VFKHPH EHQHƄWHG programmes in new “niches” (e.g. medical equipment CHAPTER II : THAILAND’S INNOVATION SYSTEM: CRITICAL OBSERVATIONS AND POLICY RECOMMENDATIONS 31

and tourism) to be supported with matching funds from the Center of Excellence for Shrimp Molecular Biology the private sector; the Thailand Research Fund (TRF) and Biotechnology,34 established by Mahidol University has launched international research programmes (e.g. ZLWKWKHVXSSRUWRI%,27(&DQGLQFRQMXQFWLRQZLWK in chicken bacteria); and NSTDA supports agriculture a shrimp industry consortium, has developed virus R&D programmes (e.g. in agricultural genetics). Some testing kits and diagnostic training, which have programmes have resulted in the creation of new R&D resulted in fewer losses for the shrimp industry from FHQWUHV MRLQWO\ RSHUDWHG ZLWK LQGXVWU\)RU H[DPSOH YLUXVHV ER[}

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7KHVKULPSLQGXVWU\LVDPDMRU7KDLVXFFHVVVWRU\$IWHU7DLZDQpVVKULPSLQGXVWU\FROODSVHGLQWKHODWHV7KDLODQG became the world’s largest producer of cultivated (farmed) shrimp by the mid-1990s. Thai agro-industry groups, especially Charoen Phokpand, along with Japanese trading companies employing Taiwanese technicians, were critical to the transfer of shrimp farming technology to Thailand. The industry’s establishment and growth owe much to public SROLF\ VXEVLGL]HGƄQDQFLQJSURSHUW\ULJKWVDGMXVWPHQWVDQGVXSSRUWLQJLQIUDVWUXFWXUH DQGWRKLJKO\LQVWLWXWLRQDOL]HGDQG effective university-industry linkages.

7KHVHOLQNDJHVKDYHEHHQFUXFLDOLQƄJKWLQJWKHGLVHDVHVHQGHPLFWRWKHLQGXVWU\7KDLHGXFDWLRQDOLQVWLWXWLRQVHVSHFLDOO\ Mahidol University, helped reduce losses from viruses by developing DNA diagnostic probes. This effort was undertaken LQFRQMXQFWLRQZLWKDQLQGXVWU\FRQVRUWLXPWKH6KULPS&XOWXUH5HVHDUFKDQG'HYHORSPHQW&RPSDQ\DQGKDVEHFRPH well institutionalized. In 2001, Mahidol University, supported by BIOTEC, established Centex Shrimp (Center of Excellence for Shrimp Molecular %LRORJ\DQG%LRWHFKQRORJ\ ŸDPXOWLGLVFLSOLQDU\ODERUDWRU\WKDWDPDOJDPDWHGUHVHDUFKIURPDQXPEHURIWKHXQLYHUVLW\pV departments. In 2000, BIOTEC also helped establish the Shrimp Biotechnology Business Unit to commercialize R&D results (e.g. virus test kits and diagnostic training). Revenues from this unit are invested in further research by BIOTEC and Centex Shrimp.

6HYHUDO IDFWRUV VSHFLƄF WR WKH VKULPS LQGXVWU\ KDYH FRQWULEXWHG WR VXFFHVVIXO XQLYHUVLW\LQGXVWU\ OLQNDJHV )LUVW DQ RUJDQL]HGSULYDWHVHFWRUOHGE\DSRZHUIXOEXVLQHVVJURXSZDVDEOHWRDJUHHRQDFOHDUO\LGHQWLƄHGVHWRISUREOHPV Second, a cadre of laboratory scientists found those problems to be interesting challenges intellectually, but also in WHUPVRIFRQWULEXWLQJWRWKHLUFDUHHUREMHFWLYHV7KLUGWKHUHZDVVLJQLƄFDQWSXEOLFVHFWRULQWHUHVWLQSURPRWLQJDVHFWRU that demonstrated ample potential to generate export revenues. Fourth, intra-industry collective action did not pose DSUREOHPJLYHQWKHUHODWLYHO\ZHDNSRVLWLRQRIVPDOOVKULPSIDUPHUV LQFRQWUDVWWRUHFXUUHQWFRQƅLFWVEHWZHHQVXJDU JURZHUVDQGPLOOHUV )LQDOO\DKHOSIXOTXDVLSXEOLFIDFLOLWDWRU%,27(&SURYLGHGVWUDWHJLFƄQDQFLQJDQGFRRUGLQDWLRQ Source: Based on Brimble and Doner, 2007.

The elaboration and implementation of R&D a sustained focus on fewer research areas will be programmes involve, in general, various concerned necessary to develop a critical mass. As practically stakeholders (RTOs, researchers, funders, private no evaluations of programmes’ achievements were sector, relevant ministries), but in conditions that made available to the UNCTAD team,35 there is not a remain rather opaque and not well-structured VXIƄFLHQWEDVLVWRSURYLGHPRUHVSHFLƄFVXJJHVWLRQV and formalized. There is no evidence of clear and on how to rationalize R&D programmes. More open structured stakeholder involvement in programme and systematic monitoring and impact evaluation of monitoring and evaluation. Another problem is that R&D programmes and wider access to monitoring and the resources invested in each programme are rather evaluation results will be necessary in order to enhance small. Greater prioritization of research activities and the strategic contribution of R&D programmes.

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Thailand has a number of competitive advantages to develop a bioplastics industry. It is endowed with abundant raw materials (e.g. cassava) that can be used for bioplastics production; a well-established plastics industry, with over 3,000 ƄUPVSOXVPXOWLSOHƄUPVLQYROYHGLQPDQ\VWHSVRIWKHYDOXHFKDLQDQGDVROLGUHVHDUFKEDVHWRVXSSRUWWKHGHYHORSPHQW of new plant varieties and bioplastic products. 32 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

%R[ &RPSUHKHQVLYHVXSSRUWIRUWKHGHYHORSPHQWRIWKHELRSODVWLFVLQGXVWU\LQ7KDLODQG(continued)

The development of a bioplastics industry has been on the Government’s agenda since 2006, supported by NIA. The URDGPDSIRUWKHGHYHORSPHQWRIWKHELRSODVWLFVLQGXVWU\IRFXVHGRQIRXUEURDGVWUDWHJLHVGHYHORSLQJDVXIƄFLHQW supply of raw materials as bioplastic feedstock; developing new technologies; attracting and developing new businesses LQWKHVHFWRUDQGVHWWLQJXSDVXSSRUWLYHLQIUDVWUXFWXUH7RLPSOHPHQWWKLVWKH*RYHUQPHQWDOORFDWHG}ELOOLRQEDKW DQGGHVLJQDWHG1,$WRPDQDJHDQGPRQLWRULPSOHPHQWDWLRQ$VSDUWRIWKHURDGPDSDQ5 'SURJUDPPHKDVƄQDQFHG UHVHDUFKSURMHFWV7KH%XUHDXRI,QYHVWPHQWKDVSURYLGHGVSHFLDOLQFHQWLYHVWRƄUPVLQYHVWLQJLQELRSODVWLFVDQG DSSURYHGSURMHFWVIRUDWRWDOLQYHVWPHQWRI}ELOOLRQEDKW7HFKQLFDODQGƄQDQFLDOVXSSRUWKDVEHHQSURYLGHGWR7KDLƄUPV innovating in bioplastics. New compounding technology and products have been developed and commercialized and a 7KDL%LRSODVWLFV,QGXVWU\$VVRFLDWLRQKDVEHHQFUHDWHG$7KDL,QGXVWULDOVWDQGDUGIRUWKHVSHFLƄFDWLRQRIFRPSRVWDEOH SODVWLFVZDVSXEOLVKHGDQGWKUHHORFDOWHVWLQJODERUDWRULHVIRUFRPSRVWDEOHELRSODVWLFVZHUHFHUWLƄHGLQWHUQDWLRQDOO\ 7KHVHFRQGSKDVHRIWKHURDGPDS Ÿ IRFXVHVRQWKHFRQVWUXFWLRQRIDELRSODVWLFUHVLQSLORWSODQWWKURXJK public-private co-investment (30:70) and further supporting actions in the above-mentioned areas. Source: UNCTAD, based on information provided by Thailand’s National Innovation Agency.

6FLHQFHSDUNV technological and consulting services, product design centre, IP management) have been established.37 After The Government has built or initiated work on several three years, an assessment will determine whether science parks. The Thailand Science Park (TSP), universities would be ready to launch a science park. launched in 1996 in the northern suburb of Bangkok, At present both Khon Kaen University and Prince is the most advanced. It hosts four national high-tech of Songla Universities have passed the assessment research centres (Nanotec, Biotec, Mtec, Nectec) criteria and are in the transition period to start work where 1,800 researchers (including 480 with PhDs) on science parks in the north-east and southern work. It has 60 tenant enterprises with about 500 staff regions respectively. For each regional science park, PHPEHUV RIZKLFK}SHUFHQWDUH5 'SHUVRQQHO } ELOOLRQ EDKW KDYH EHHQ DSSURYHG +RZHYHU WKHLU 7HQDQWƄUPVDUHODUJHO\ZRUNLQJLQ5 'ƄHOGVUHODWHG development, after an initial pilot phase, has slowed to the activities of the four national research centres down, apparently due to a reorganization of national located in the park. Around one third of the tenants agencies (the programme, initially under the NSTDA, DUHHOHFWURQLFVDQGFRPSXWHUƄUPV}SHUFHQWDUH is now the responsibility of the agency in charge of ELRWHFKQRORJ\ƄUPVDQG}SHUFHQWDUHLQWKHPHWDOV industrial zones operating under the Prime Minister). and materials industry. The park also has a Business Various stakeholders (from the public administration Incubator Centre to facilitate the growth of small and public universities) interviewed in Bangkok and innovative businesses. This centre has incubated 74 in the north-east region expressed their continued VWDUWXSV DQG VXSSRUWHG 5 ' SURMHFWV LQ D QXPEHU interest in supporting the development of regional RIHVWDEOLVKHGƄUPV VHHFKDSWHU}IRUIXUWKHUGHWDLOV VFLHQFH SDUNV +RZHYHU SULYDWH VHFWRU LQWHUHVW DQG In addition, the science park offers innovation-related the level of public support are uncertain. Plans for services (e.g. IP management and technological other science parks (e.g. Krenovation Park of GISTDA, services) and is host to three universities and one Food Innopolis of Kasetsart University) are currently medical school. Phase II of the park opened in 2014, being developed. In addition, a private science park, EXW WKHUH DUH GLIƄFXOWLHV LQ DWWUDFWLQJ ƄUPV WR ORFDWH AMATA Science City, will be launched in 2015 at the there, as they prefer more central locations in Bangkok. Amata Nakorn industrial estate in the eastern region. TSP has been highly successful in providing Thailand with a well-developed physical R&D infrastructure, but +XPDQUHVRXUFHVHGXFDWLRQDQG less successful in supporting and attracting private 38 36 FXOWXUH 5 'HIIRUWVDQGLQLQFXEDWLQJ5 'ƄUPV There are plans to establish three science parks with Thailand has considerably expanded its educational some degree of technological specialization in three system, substantially increasing participation other regions of the country, close to universities and rates in primary, secondary and tertiary education FROOHJHV'XULQJDƄUVWSKDVHVHUYLFHVWKDWFRQQHFW through proactive education policies (Mounier and university and industry activities (business incubator, Tangchuang, 2010). Now, policy should aim to CHAPTER II : THAILAND’S INNOVATION SYSTEM: CRITICAL OBSERVATIONS AND POLICY RECOMMENDATIONS 33

increase the quality and relevance of education at all is being broadly considered, but the possible direction levels, and particularly beyond Bangkok. There are and support required is uncertain so far. The renewal VLJQLƄFDQWVKRUWDJHVRITXDOLƄHG6 7JUDGXDWHVDQG of teachers (40,000 of whom will retire by 2018) is trained technicians, as well as inadequate promotion the Government’s main concern. It rightly wants to of the entrepreneurial and innovation skills required by use this opportunity to boost TVET. The recruitment an innovative economy. of adequate teachers has become an uphill task as the status of teachers is not valued much and teacher $W WKH OHYHO RI KLJKHU HGXFDWLRQ D PDMRU SUREOHP LV the inability of institutions to produce S&T graduates training structures are underdeveloped. Two other with the skills and quality needed by the private areas requiring urgent attention are improving teaching sector. There is a shortage of S&T graduates in most methods and equipment. A number of policies and disciplines, notably engineering.39 Thai industries programmes have been put in place since the mid- 1990s to promote the training of science and maths RIWHQFDOOXSRQIRUHLJQJUDGXDWHVWRƄOOTXDOLƄHG6 7 positions. Making higher education more responsive teachers, but improving S&T teaching requires still to the requirements of industry is inhibited by the poor further action, in particular updating curricula, training linkages between universities and industry.40 Policy materials and learning opportunities that promote orientations41 to enhance the quality and relevance more practical learning and problem-solving, and that keep pace with the requirements of industry. RI KLJKHU HGXFDWLRQ KDYH QRW VXIƄFLHQWO\ LQƅXHQFHG university structures and behaviour, partly because of 7KHSURPRWLRQRIDVFLHQWLƄFDQGWHFKQRORJLFDOFXOWXUH inadequate coordination between research, education KDV UHFHLYHG VLJQLƄFDQW DWWHQWLRQ 7KDLODQG KDV D and industrial policies. Other reasons include science museum (established in 1992) with regional institutional reluctance to change, including among branches and an ambitious media programme, faculty and university managers, increased autonomy including a 24-hour TV channel (currently under JUDQWHG WR DFDGHPLF HVWDEOLVKPHQWV Ÿ ERWK SXEOLF development). The overall promotion programme has DQGSULYDWHŸDQGTXDVLDXWRPDWLFEXGJHWDOORFDWLRQV DWWUDFWHG}PLOOLRQYLVLWRUVDQQXDOO\ provided with limited government oversight. Private endeavours are increasingly contributing to the Consequently, the Government has focused its GHYHORSPHQWRI67,KXPDQUHVRXUFHV ER[} )RU instance, the PPT Group, Thailand’s State-owned oil DWWHQWLRQRQLQWURGXFLQJDVHULHVRIVFKHPHVWRƄOOWKH gaps in advanced S&T skills and to raise the quality of DQGJDVƄUPLVVHWWLQJXSDQDFDGHP\DQGDUHVHDUFK research personnel. These include, for example, the and training institute. Royal Golden Jubilee PhD Program, which provides &KDSWHU}GLVFXVVHVHDFKRIWKHVHLVVXHVLQJUHDWHU 300 fellowships annually for post-graduate studies; GHWDLOVDQGRIIHUVVSHFLƄFSROLF\SURSRVDOV the recently established Talent Mobility Scheme to facilitate the mobility of researchers from higher 3DWHQWVDQGOLFHQFHV education institutions and public laboratories to the industrial sector; and the Thai Advanced Institute 7KDLODQG KDV VLJQHG DOO WKH PDMRU SDWHQWUHODWHG RI 6 7 7+$,67 ZKLFK FRQQHFWV 7KDL HGXFDWLRQ international treaties42 and has a well-established and research institutions with foreign academic and LQWHOOHFWXDOSURSHUW\ ,3 DGPLQLVWUDWLRQERG\+RZHYHU UHVHDUFK LQVWLWXWLRQV DQG ƄUPV 7KH SRWHQWLDO LPSDFW a number of issues affect Thailand’s ability to generate of some of these schemes is limited by their lack of IP rights and, more notably, to commercialize IP. The institutionalization. For instance, universities have no latter is mostly due to the limited commercial value particular incentives to participate in the Talent Mobility of the IP created by Thai research institutions and scheme. XQLYHUVLWLHV VHHFKDSWHU} Technical vocational education and training (TVET) One problem is the considerable delay in examining tends to be weak for several reasons: the private patents deposited by national and foreign entities. sector demands higher levels of education to Currently, there is a backlog of 30,000 requests. A compensate for the inadequate skills of vocational large recruitment process for specialists has been graduates; access to higher levels of education launched and 30 examiners should be operational has been facilitated by policies supporting its rapid soon to reduce this backlog.43 The enforcement of expansion; and limited resources are provided for IP rights in case of infringement, which requires an vocational education. Reform of the existing system HIƄFLHQW MXGLFLDO V\VWHP LV DOVR DQ LVVXH 7KH FRVW 34 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

RI ƄOLQJ SDWHQWV SDUWLFXODUO\ LQ WKH SDWHQW RIƄFHV LQ sector (and not only from State enterprises with sizeable (XURSH-DSDQDQGWKH8QLWHG6WDWHVLVDVLJQLƄFDQW assets). The generous R&D tax incentives have yet to EDUULHUIRUXQLYHUVLWLHVDQGVPDOOHUƄUPV prove their ability to attract more private resources Another issue relates to the confusing and restrictive into innovation activities. Key mechanisms, such as IP regime of patents relating to publicly funded public procurement and public-private partnerships, for research. There are plans to introduce a scheme – stimulating the development of collective goods (e.g. pending parliamentary approval – that would facilitate transport, utilities) while promoting the technological the exploitation of such patents by researchers and FDSDELOLWLHV RI GRPHVWLF ƄUPV DUH QRW PXFK XVHG LQ universities in line with the Bayh-Dole Act in the 7KDLODQG ,I ZHOO PDQDJHG WKH\ FRXOG VLJQLƄFDQWO\ United States. LQFUHDVH WKH ƄQDQFLDO UHVRXUFHV DYDLODEOH LQ WKH system and promote the development of domestic technological capabilities. &RQFOXVLRQV The next section addresses the weaknesses of the A number of general conclusions can be drawn from STI system and offers a number of policy suggestions. this review of government institutions and actions to enhance Thailand’s STI system. D. POLICY Many of the plans are generally suitable and commendable. Some initiatives (for instance, at the RECOMMENDATIONS: tertiary level of education) are creatively addressing TEN STRATEGIC FRUHLVVXHV+RZHYHUWKHUHLVDODFNRIFODULW\UHJDUGLQJ THRUSTS FOR CHANGE institutional roles and responsibilities, a lack of clear and strategic orientations and a dispersion of resources on The critical review of the Thai innovation system PXOWLSOH XQFRRUGLQDWHG SURMHFWV ZLWK DQ LQVXIƄFLHQW VXJJHVWV WKDW LWV HIƄFLHQW IXQFWLRQLQJ LV LQKLELWHG E\ critical mass. These initiatives are unlikely to make an attitudinal and behavioural issues that permeate the impact on the scale that is needed to resolve the core whole system and concern all actors. These are challenges facing the Thai innovation system. induced by the overall context in which the actors operate – economic, political, institutional and The overall STI system tends to be dominated by ƄQDQFLDOtDQGWKHLQFHQWLYHVSURYLGHG7KHEXONRIWKH a science-supply approach, a linear concept that recommendations address these issues. perceives innovation as deriving directly from research. The policymaking process is overwhelmed by Changes in mentality and behaviour and deep research bodies. Users – representatives of business, transformations do not occur overnight. Nevertheless, consumers and farmers – are not adequately involved there are a number of actions that could serve short- in the design of STI policies and programmes. term economic and social needs, while stimulating )LQDQFLDO PHFKDQLVPV WR LQYROYH ƄUPV LQ LQQRYDWLRQ the attitudinal changes required for a long-term activities, such as matching funds, are scarcely used. improvement of the innovation system. In this context, programmes working at the interface between knowledge structures and businesses are 0RYLQJOHDGHUVDQGLQVWLWXWLRQVRXW much needed, and have been well appreciated when RIWKHLUFRPIRUW]RQH HIƄFLHQWO\ LPSOHPHQWHG 6LJQLƄFDQW PHDVXUHV KDYH been put in place for developing human resources at Probably the main reason for Thai decision makers not the tertiary and post-graduate levels in response to being more innovative is that they do not feel the need fundamental needs. Most of these, however, continue for it. The risk of being trapped in a state of economic to follow a supply-driven approach, and it would stagnation is not tangible enough. Thailand’s be important that programmes be redesigned with HPHUJHQFHIURPWKHŸ$VLDQƄQDQFLDOFULVLV stronger inputs from users and producers. and its resilience vis-à-vis the 2008-2009 global Overall investments, currently coming mostly from HFRQRPLF FULVLV KDV FUHDWHG D VHQVH RI FRQƄGHQFH JRYHUQPHQW VRXUFHV DUH LQVXIƄFLHQW WR WXUQ 7KDLODQG and complacency. The economy is performing into an innovation-driven economy. Public resources well for the time being, and operating at near to full should be increased, provided they are matched by employment. The business sector, particularly the more resources from a wider spectrum of the private SME segment, feels little pressure to innovate. On the CHAPTER II : THAILAND’S INNOVATION SYSTEM: CRITICAL OBSERVATIONS AND POLICY RECOMMENDATIONS 35

public sector side, accountability does not seem of RI QDWLRQDO SURMHFWV WKDW LQFOXGH WKH SDUWLFLSDWLRQ RI particular concern: organizations often receive higher society at large through representative bodies (e.g. budgets without careful monitoring and evaluation of parliament, unions, chambers of commerce) are also their performance. required in order to build and sustain consensus on the goals to be achieved and the investments to be In this situation, convincing leaders of the need to focus made. Thailand faces strong political divisions which more on STI for future economic growth is challenging. hamper the adoption and execution of policies. 7KHƄUVWVWHSVKRXOGEHWRVHQVLWL]HNH\DFWRUVDQGWKH Inclusive deliberations that consider the needs and public at large, about the threats to the economy and capabilities of different sectors of society as well as its competitiveness. The media could be mobilized to discussions based on evidence can help provide the support this process. Success stories should be widely consensus required. For this, policymakers must be publicized to create positive dynamics and promote provided with timely, clear and reliable STI data. FRQƄGHQFHLQWKHFRXQWU\pVDELOLWLHVWRLQQRYDWH An innovation-focused National Economic and Social Pressure for change could be achieved by increasing 'HYHORSPHQW3ODQ ER[} DVVXJJHVWHGE\167,32 accountability, mainly through the introduction of 'XURQJNDYHURM E FRXOG EH D JRRG VWDUWLQJ effective monitoring and evaluation systems and point for mobilizing stakeholders and resources for the through performance-related funding (see section 5) achievement of common goals, provided it is generated for all entities concerned with the public interest (e.g. with a real sense of ownership by a broad spectrum of public STI agencies, RTOs, universities and schools). Thai society. As part of broader discussions for national reform, a set of recommendations is being made to 0RELOL]LQJVWDNHKROGHUVIRU the National Reform Council for STI reform to support FRPPRQJRDOVDQGDVSLUDWLRQV LQQRYDWLRQEDVHG GHYHORSPHQW ER[} EDVHG RQ three pillars: an innovation-based development plan, a To truly engage actors and obtain clear commitments, review of STI governance, and budgeting for STI. The it is necessary for leaders and agents of change at WKUHHSLOODUVUHƅHFWNH\SULRULWLHVLGHQWLƄHGLQWKLV5HYLHZ various levels to gain a clear understanding of what is at (see, for example, recommendations 3, 4 and 5 below). stake, what innovation is all about and its relevance for ,WZLOOEHFUXFLDOWKDWWKHVSHFLƄFGHYHORSPHQWRIHDFK economic development. Only then can they develop of the three pillars adequately addresses key concerns, the types of policies, programmes and institutions that such as ensuring a broad sense of ownership by can promote a more innovative economy. Finland’s stakeholders, clear leadership for STI policy design and ORQJVWDQGLQJOHDGHUVKLSWUDLQLQJ ER[} LVDJRRG evaluation, a clear division of functions and hierarchy example of a mechanism that has created powerful DPRQJ67,LQVWLWXWLRQVZLWKVSHFLƄFUHVSRQVLELOLWLHVDQG dynamics and facilitated reform processes. Well- accountability lines, strong monitoring and evaluation organized consultation processes during the design and linking of budgetary allocations to performance.

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As part of broader discussions for national reform, a set of recommendations for STI reform to support innovation-based development are being proposed to the National Reform Council. Such reform would be based on three pillars:

1. An innovation-based development plan. 7KH1DWLRQDO67,3ODQIRUWKHQH[WƄYH\HDUVZLOOVXVWDLQWKHth National Economic and Social Development (NESD) Plan. The NESD plan should emphasize innovation-based development (covering the economic, social, environment and quality of life dimensions) with the aim of enhancing competitiveness, LQFOXVLYHQHVVDQGVXVWDLQDEOHGHYHORSPHQW7KH1(6'%RDUGDQGWKH67,3ROLF\2IƄFHVKRXOGJHQHUDWHDWHFKQRORJ\DQG innovation roadmap for strategic industries as part of the 12th NESD Plan. 2. Governance of innovation. The Prime Minister should further engage in STI policy by heading two new committees: WKH 6FLHQFH 7HFKQRORJ\ 5HVHDUFK DQG ,QQRYDWLRQ 3ROLF\ &RPPLWWHH D SROLF\PDNLQJ ERG\ DQG WKH &KLHI 6FLHQWLƄF $GYLVRU\ &RPPLWWHH DQ DGYLVRU\ ERG\ WR WKH 3ULPH 0LQLVWHU 7KH 67, 3ROLF\ 2IƄFH FXUUHQWO\ XQGHU 0267 VKRXOG EHFRPHWKH6FLHQFH7HFKQRORJ\5HVHDUFKDQG,QQRYDWLRQ3ROLF\2IƄFH 675,32 DVWDWXWRU\DJHQF\RSHUDWLQJDVDXQLW ZLWKLQWKH2IƄFHRIWKH3ULPH0LQLVWHU,WVKRXOGVHUYHDVDFRRUGLQDWRURIFRPPLWWHHVDQGPLQLVWULHVRQPDWWHUVRI67, policy. The role of STI-related agencies (including funding and operational agencies) should be reviewed in order to reduce GXSOLFDWLRQVDQGJDSVDQGLQFUHDVHHIƄFLHQF\ 36 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

%R[ 2QJRLQJGLVFXVVLRQVIRUUHIRUPRI67,LQ7KDLODQG(continued)

3. Budgeting for STI. A new STI budget linked to the 10-year National STI Policy and Plan should be introduced. The QHZEXGJHWVKRXOGSURYLGHIRUDOORFDWLRQVIRUƄYH\HDUV LQVWHDGRIDQQXDOO\ DQGVKRXOGEHPRUHFRQVLVWHQWZLWKQDWLRQDO REMHFWLYHV ,WV DOORFDWLRQV WR SXEOLF DJHQFLHV DQG 6WDWHRZQHG HQWHUSULVHV VKRXOG EH DVVHVVHG E\ WKH 1(6' %RDUG the Bureau of the Budget and STRIPO. Furthermore, the budget should be more inclusive and further decentralized to regional and local governments, local enterprises and industries.

Source: %DVHGRQDEULHƄQJE\WKH1DWLRQDO67,3ROLF\2IƄFH )HEUXDU\

%DODQFLQJVRFLDOHQYLURQPHQWDO in the world (Nicholls et al., 2008) to the negative DQGHFRQRPLFREMHFWLYHV HIIHFWV RI FOLPDWH FKDQJH ,QGHHG WKH ƅRRGV had a devastating economic and human impact. The To address economic and social inequalities, strategies Thailand Technology Needs Assessment reports for should be designed to counteract current trends of climate change 1DWLRQDO67,3ROLF\2IƄFHDQG81(3 increasing concentration of economic activity and 2012 and 2012b) provide the basis for determining the SRZHULQODUJHUƄUPVDQGLQ%DQJNRN$VVPDOOHUƄUPV kinds of policy efforts needed. Those reports identify farmers and citizens outside Bangkok become more priority technologies and actions needed to build the marginalized, Thai society risks becoming increasingly FDSDELOLWLHV DV ZHOO DV WKH ƄQDQFLDO DQG UHJXODWRU\ polarized. More inclusive innovation policies and conditions necessary for the appropriation of those programmes, along with other complementary policies technologies. As in other countries, those policy HJ ƄVFDO HGXFDWLRQDO KHDOWK DQG VRFLDO SROLFLHV actions need to be combined with the adoption and can play a key role in reversing inequalities. Inclusive enforcement of regulations in other areas (e.g. anti- innovation programmes are those that support SROOXWLRQ PHDVXUHV UHGXFWLRQ RI WUDIƄF FRQJHVWLRQ innovation both for and by marginal groups (Foster LQFOXGLQJWKURXJKWKHSURYLVLRQRIDSSURSULDWHƄQDQFLDO DQG +HHNV )RU LQVWDQFH VXFK SURJUDPPHV incentives. FRXOG ƄQDQFH VFLHQWLƄF DQG WHFKQRORJLFDO UHVHDUFK particularly translational research, in areas of interest 6WUHQJWKHQLQJ67,JRYHUQDQFHDQG to low-income groups (e.g. small-scale farmers, PDQDJHPHQW LQIRUPDOSURGXFHUVVPDOOƄUPV RUWKH\FRXOGLPSURYH the absorptive capacities of small-scale farmers. The organization and functioning of institutions in Other areas that require greater efforts include charge of overseeing and funding STI policies is SURPRWLRQ RI LQQRYDWLRQ LQ 60(V WKURXJK ƄQDQFLDO LQHIƄFLHQW $JHQFLHV ZLWK RYHUODSSLQJ UHVSRQVLELOLWLHV VFKHPHVWKDWVSHFLƄFDOO\WDUJHW60(V HJPDWFKLQJ have proliferated. Individual departments carry out grants), expanding business, technological and the incompatible roles of policy setting, funding and testing services beyond Bangkok, developing locally- implementation. There is only a narrow representation based sectoral innovation centres/actors that support of Thai society on advisory committees. Institutional SMEs and providing assistance for conducting or confusion and a lack of oversight and accountability subcontracting R&D. are resulting in poor management of bodies and of 2Q WKH HQYLURQPHQW IURQW D PDMRU SUREOHP IRU resources. This Review offers suggestions on how to Thailand is climate change and its effects. Bangkok enhance STI governance and management based on has been ranked the 7th most vulnerable port city widely accepted principles (ER[}).

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Basic and widely accepted principles for the effective design, implementation and evaluation of STI policy should underpin STI policy in Thailand, in particular: Principles for the design of policy instruments • ,GHQWLI\ VSHFLƄF LQQRYDWLRQ JDSV DQG QHHGV GHWHUPLQH LQQRYDWLRQ SROLF\ REMHFWLYHV LQ PDQ\ LQVWDQFHV WKURXJK political processes); and adopt a mix of policy instruments to achieve them (e.g. competitive collaborative funds to foster industry-academia collaboration or multidisciplinary research). CHAPTER II : THAILAND’S INNOVATION SYSTEM: CRITICAL OBSERVATIONS AND POLICY RECOMMENDATIONS 37

%R[ %DVLFSULQFLSOHVWRJXLGH67,SROLF\GHVLJQJRYHUQDQFHDQGHYDOXDWLRQLQ7KDLODQG(continued)

• The policy mix should address all types and sources of innovation, not only R&D. • Schemes should be simple to administer, making them more appealing and reducing opportunities for corruption. • 7KHSROLF\PL[VKRXOGWDUJHWDOOƄUPVQRWRQO\ODUJHURQHV • Financial schemes should stimulate additionality, i.e. incentives should be designed to increase private investment EH\RQGZKDWƄUPVZRXOGKDYHLQYHVWHGLQ5 'DQGLQQRYDWLRQZLWKRXWWKHP Principles for institutions • Separate the functions of policy design, funding and implementation. A clear distinction of roles and responsibilities allows more effective supervision and accountability. • ,QVWLWXWLRQDOUHSRUWLQJOLQHVVKRXOGEHHVWDEOLVKHGDFFRUGLQJWRDZHOOGHƄQHGKLHUDUFK\ • (YDOXDWLRQDQGPDQDJHPHQWIXQFWLRQVVKRXOGEHVHSDUDWHGWRDYRLGFRQƅLFWVRILQWHUHVW Principles for monitoring and evaluation (M&E) • 0 (DFWLYLWLHVVKRXOGPHDVXUHQRWRQO\LQSXWVEXWDOVRRXWSXWVDQGLPSDFWV HJLQQRYDWLRQVMREVƄUPFUHDWLRQ • M&E activities should be planned and budgeted for in the early stages of programme design. • Evaluations should be understood and used as a learning exercise, and not only as a compliance exercise. Learning derived from M&E activities should inform ongoing and future planning. • Evaluations should be performed by independent evaluators. International experts should participate in the evaluation RIVFLHQWLƄFDFWLYLWLHV6WDNHKROGHUV LQFOXGLQJƄQDOXVHUV VKRXOGSDUWLFLSDWHLQ0 (DFWLYLWLHV • The results of evaluations should be published. Source: UNCTAD.

There is need for a clear division of functions and it is broadly supported and from where wider high- hierarchy among institutions. The National STI level support for STI policies could be built. Policy Committee should be entrusted with a Among the bodies in charge of R&D, a clear distinction supervisory role, focusing on strategic issues and should be established between those that design the broad budget allocations, but should not be involved policies and monitor their implementation, and those in the implementation of measures; that should that fund programmes and organizations. Grouping be the responsibility of operational agencies. The and merging should help rationalize the structure. Prime Minister’s regular and active participation as The supervising body overseeing the R&D policy, chairperson of the Committee should be ensured ZKLFK ZRXOG EH WKH 15&7 Ÿ SRVVLEO\ HQODUJHG RU through various measures,44 and the Committee UHVKXIƅHGWRUHSUHVHQWDOORIWKHYDULRXV5 'IXQGLQJ should meet at least once a month. The Committee RUPDQDJLQJDJHQFLHVŸVKRXOGUHSRUWWRWKH1DWLRQDO should comprise the key relevant ministers,45 including, STIP Committee (duly strengthened as indicated imperatively, the Minister of Finance, and should be above), and not to the Prime Minister (as it currently enlarged to include high-level representatives of does). business organizations, trade unions, academics and FLYLOVRFLHW\7KH1DWLRQDO67,3ROLF\2IƄFH 167,32 Rationalization of the whole R&D structure should should continue in its role as the secretariat of the be considered by merging some entities (agencies, Committee, and focus on providing policy advice and, research centres and departments) whose functions increasingly, policy monitoring and evaluation. Ideally, overlap, suppressing the small ineffective entities it should not be involved in the implementation of STI ŸRUWKRVHWKDWKDYHRXWOLYHGWKHLUXVHIXOQHVVŸDQG programmes. To reinforce the cross-ministerial policy establishing new entities, as appropriate. The strengths reach of the National STI Policy Committee, NSTIPO, and weaknesses of the research system in Thailand currently administratively located under MOST, could VKRXOGEHDVVHVVHGWKURXJKDQDXGLWRIWKHVFLHQWLƄF be moved out of that Ministry once broad high- quality and effectiveness of its public research centres. level support for STI policies has been built. In the This audit should be conducted with the participation meantime, NSTIPO could remain under MOST, where of international experts. 38 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

,PSURYLQJUHVRXUFHPDQDJHPHQW by creating solid safeguards to prevent the misuse RI VXFK ƄQDQFLDO VXSSRUW &XUUHQW WD[ LQFHQWLYHV IRU Thailand’s overall investment in STI is inadequate. R&D and innovation should be carefully reviewed, Expenditure on R&D as a percentage of GDP is particularly their impact on SMEs, before proposing markedly low, and most of it comes from the public more generous tax incentives.46 sector. As indicated in the National STI Policy and $Q HIƄFLHQW XVH RI SXEOLF SURFXUHPHQW FDQ SURYLGH Plan, Thailand should aim at increasing investments a good vehicle for increasing the technological in R&D and innovation, particularly private sector FDSDELOLWLHV RI GRPHVWLF ƄUPV DV GHPRQVWUDWHG E\ investments. The country could also achieve more PDQ\ FRXQWULHV LQFOXGLQJ GHYHORSLQJ RQHV %R[} from taxpayers’ money through better management illustrates how Sri Lanka’s public procurement of its resources. Various ways to increase investment effectively expanded the domestic IT services sector. in STI and make more effective use of it are discussed The use of public procurement for promoting domestic below. innovation capabilities is particularly relevant for The tendency to spread resources among many large-scale programmes, such as Thailand’s railway GLIIHUHQW SURMHFWV DQG RUJDQL]DWLRQV t UHVXOWLQJ LQIUDVWUXFWXUHSURMHFW partially from a proclivity for bureaucratic tendency to overlook underperformance and largely from a lack The effective management of government resources of evaluation and oversight– needs to be reviewed. A for R&D and innovation requires sound mechanisms more cohesive approach that seeks to create critical for monitoring and evaluation of the outputs and mass as a matter of priority would be preferable. DFKLHYHPHQWVRISURMHFWVEHQHƄWLQJIURPJRYHUQPHQW spending. Outputs and impacts should be reported A good mechanism for expanding private sector and made public in a systematic manner.47 engagement in R&D and innovation efforts is the use RIPDWFKLQJIXQGVZKHUHE\DQHQWHUSULVHEHQHƄWLQJ Finally, budget allocations, rather than being quasi- IURP JRYHUQPHQW ƄQDQFLDO VXSSRUW IRU LQQRYDWLRQ automatically renewed annually, should be conditional contributes an equivalent sum of money. Generally upon compliance with policies and instructions set by WKLV PHFKDQLVP LV XVHG LQ SURMHFWV WR VWLPXODWH the supervising authorities – a practice that may help enterprise collaboration with universities or public DGMXVWWKHEHKDYLRXURIIRULQVWDQFHXQLYHUVLWLHV2Q research centres. While matching funds to promote the other hand, recipients of government funds should private sector innovation are commonly used in many EHDEOHWRIHHOPRUHFRQƄGHQWWKDWWKHLUIXQGLQJZLOOEH countries, in Thailand there is reluctance to use public VWDEOHRYHUWLPHSDUWLFXODUO\IRUODUJHUSURMHFWVZKHQ money for sponsoring the business sector because of these are implemented in accordance with stated corruption concerns. Such concerns could be allayed REMHFWLYHV

%R[ +RZ6UL/DQNDpVSXEOLFSURFXUHPHQWHIIHFWLYHO\H[SDQGHGWKHGRPHVWLFLQIRUPDWLRQWHFKQRORJ\ ,7 services sector

7KH*RYHUQPHQWRI6UL/DQNDXVHGWKHH6UL/DQNDLQLWLDWLYHDODUJHSURMHFWRI}PLOOLRQLQYROYLQJDFULWLFDOPDVVRI,7 related procurement, as an opportunity to promote the domestic IT services sector. The Information and Communication Technology Agency (ICTA), the national agency responsible for large e-government SURJUDPPHVSOD\HGDOHDGLQJUROHLQSURPRWLQJWKHGHYHORSPHQWDQGLQWHUQDWLRQDOL]DWLRQRIORFDO,7VHUYLFHVƄUPV$V PDQDJHURIODUJHHJRYHUQPHQWSURMHFWVDQGZLWKDEURDGPDQGDWH,&7$ZDVDEOHWRXQGHUWDNHDFRRUGLQDWHGVHWRI actions to promote the domestic IT sector through public procurement. As a result, of a sample of 13 key e-services SURFXUHGE\,&7$DOOEXWRQHLQFOXGHGDORFDOƄUPLQWKHZLQQLQJELG The public administration adopted transparent and open procurement practices to enable fair competition and facilitate the SDUWLFLSDWLRQRIVPDOOHUƄUPV,WDOVRGHYHORSHGDFORVHXQGHUVWDQGLQJRIWKHORFDO,7VHUYLFHVLQGXVWU\DQGFRRUGLQDWHGZLWK the IT sector to design appropriate support measures. Different instruments were deployed to increase the participation RIGRPHVWLFƄUPV)RUH[DPSOHWKHDOORFDWLRQRISUHIHUHQWLDOPDUNVWRGRPHVWLFELGGHUVSURPRWHGMRLQWYHQWXUHVEHWZHHQ LQWHUQDWLRQDODQGORFDOƄUPVZKLFKRYHUWLPHKDYHHQFRXUDJHGNQRZOHGJHWUDQVIHUDQGWHFKQRORJLFDOOHDUQLQJE\ORFDO ƄUPV,WDOVRHVWDEOLVKHGDPRGXODUHJRYHUQPHQWDUFKLWHFWXUHZKLFKUHVXOWHGLQLQYLWDWLRQVIRUVPDOOHUWHQGHUVZKLFK DUHPRUHVXLWDEOHIRU60(VDQGORFDOƄUPV,QDGGLWLRQWUDLQLQJRQSXEOLFSURFXUHPHQWZDVSURYLGHGIRUORFDOELGGHUV CHAPTER II : THAILAND’S INNOVATION SYSTEM: CRITICAL OBSERVATIONS AND POLICY RECOMMENDATIONS 39

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Experience from Sri Lanka and other developing countries indicates that leveraging public procurement for domestic sector development is a complex policy instrument and its successful application requires a certain level of capabilities (in the public and private sector) as well as good procurement practices. This necessitates the following strategic actions:

• (QVXULQJFHUWDLQIXQGDPHQWDOFRQGLWLRQVLQFOXGLQJDFULWLFDOPDVVRISXEOLFSURMHFWV • Creating a strong institutional framework with a lead agency.

• 3URYLGLQJWDUJHWHGSUHIHUHQWLDOWUHDWPHQWIRUORFDOVXSSOLHUV ZLWKRXWMHRSDUGL]LQJWKHTXDOLW\RIWKHVHUYLFHVSURYLGHG • ,QFUHDVLQJWKHRSWLRQVIRU60(VWRSUHVHQWELGVIRUH[DPSOHE\DOORZLQJWKHPWKHWHQGHULQJRIVPDOOHUSURMHFWV • 3URPRWLQJDZDUHQHVVDQGFDSDFLW\EXLOGLQJDPRQJORFDOƄUPVDQGLQUHOHYDQWSXEOLFDXWKRULWLHV Source: Adapted from UNCTAD, 2013b.

/LQNLQJLQQRYDWLRQDFWRUV RUJDQL]DWLRQVIRUVSHFLƄFVHFWRUVDQGXSJUDGLQJWKHLU capabilities to provide training in critical skills and A serious weakness of the Thai innovation system is initiate R&D programmes is also desirable.48 its fragmentation. Actors operate in silos and do not Linkages have also partly been discouraged by the interact with each other, which obstructs opportunities absence of incentives for researchers, teachers to learn, to address each other’s needs and concerns, and their institutions to collaborate with industry. and to generate synergies. Researchers’ participation in industrial research Despite good examples of collaboration (e.g. in the DQG LQ WKH SURYLVLRQ RI DGYLVRU\ VHUYLFHV WR ƄUPV hard-disk drive and shrimp industries), relationships should be formally recognized and valued as a between universities, public research organizations and means of advancing their careers. For instance, the industry are particularly weak (see, for example, Doner Talent Mobility Program should be strengthened by et al., 2013; Brimble and Doner, 2007; Intarakumnerd DGMXVWLQJ LQFHQWLYHV WR HQFRXUDJH XQLYHUVLWLHV DQG and Schiller, 2009). Academics and part of the public researchers to take part in the scheme. Equally, in their administration believe that innovation can be pushed performance assessments, universities and research by research; that is, that research may eventually trickle institutions should be evaluated on their ability to down to provide solutions for industry, society and collaborate with industry, provide services and transfer consumers. On the other hand, the business sector WHFKQRORJ\ 0RUH VSHFLƄFDOO\ LW LV UHFRPPHQGHG WR often behaves as if the research system only needs progressively impose on public research organizations to respond to market demands. Both viewpoints are WKH REOLJDWLRQ WR KDYH D VLJQLƄFDQW SHUFHQWDJH RI erroneous. Innovation takes places in a system as a their budgets funded through contracts with clients result of interactions among multiple actors. Greater (i.e. private or public sector), possibly to the tune of between 20 and 40 per cent, depending on the awareness about the systemic nature of innovation can nature of the research in which the organization is be built through campaigns and training (as suggested engaged (smaller for organizations mostly engaged HDUOLHU +RZHYHUDZDUHQHVVLVQRWHQRXJKSURDFWLYH in basic research and higher for those engaged in policies to stimulate linkages and incentives to support technological or industrial research). In this regard, their development are also needed urgently. the policy changes introduced by the Indian Centre The need to strengthen the linkages between actors IRU 6FLHQWLƄF DQG ,QGXVWULDO 5HVHDUFK WR WUDQVIRUP is abundantly demonstrated by the success of those its inward-oriented culture to one of collaboration VFKHPHV HJ ,7$3 DQG RUJDQL]DWLRQV HJ +'', with industry could serve as an inspiration. Finally, TAI, Thai Food Institute) that operate at the interface a clear IP policy for publicly funded research should between sources of knowledge and clients seeking provide incentives, or at least facilitate, industry-RTO knowledge. It is advisable to scale up those schemes collaboration. Researchers’ mobility should also be VLJQLƄFDQWO\ DQG SRVVLEO\ PDNH ,7$3 DXWRQRPRXV facilitated. First, restrictions on mobility in current from NSTDA to minimize bureaucracy and allow it to public scholarship programmes should be relaxed (i.e. become more agile. Promoting suitable intermediary by easing researchers’ mobility within public research 40 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

institutions and reducing the obligatory number of regarding ownership of IP resulting from research \HDUV WKDW EHQHƄFLDULHV RI SXEOLF VFKRODUVKLSV PXVW ƄQDQFHG E\ SXEOLF IXQGV DQG HQFRXUDJH UHVHDUFK spend in a public research institution). Second, processes that promote collaboration with industry support should be given to mobility programmes for and social partners from the outset and thus enable researchers (e.g. Researchers for Research in Industry the emergence of research with greater commercial or the Talent Mobility Program) and incentives for potential. Translational R&D funds and common UHVHDUFKHUVpPRELOLW\DGMXVWHG8QLYHUVLWLHVFRXOGDOVR scale-up facilities should be expanded. take the initiative to provide training that combines the More generally, it is recommended that mechanisms, TXDOLƄFDWLRQVDQGFRPSHWHQFHVQHHGHGIRULQQRYDWLRQ such as multi-stakeholder committees or mixed by offering, for instance, combined engineering and evaluation teams, be established that formally entrepreneurship courses. KMUTT’s experience in this involve users (e.g. business, farmers, consumers’ regard is a good example. representatives) in the design, implementation and Programmes that expose students, teachers and evaluation of R&D and innovation programmes. academics to working conditions in the business sector, such as dual vocational training, mobility programmes for researchers and combined studies, 6XSSRUWLQJGHFHQWUDOL]DWLRQ VKRXOGEHVWUHQJWKHQHGDQGH[SDQGHGVLJQLƄFDQWO\49 2YHUDOO QDWLRQDO DQG 67,VSHFLƄF LQYHVWPHQWV DQG Successful cooperative education programmes, such resources tend to go to more technologically developed DV WKH 0HFKDL 3DWWDQD 6FKRRO ER[} WKH SLORW areas, leading to a concentration of activities around work integrated learning, or the engineering practice Bangkok and other big cities. Infrastructure works, VFKRROVDW.0877 ER[} VKRXOGEHH[SDQGHGWR VXFKDVWKHUDLOZD\PHJDSURMHFWKHOSOLQNSHULSKHUDO UHDFKDFULWLFDOPDVVRIEHQHƄFLDULHV0DLQVWUHDPGXDO DUHDVWRWKHHFRQRPLFFHQWUHRIWKHFRXQWU\+RZHYHU YRFDWLRQDOWUDLQLQJUHTXLUHVDPDMRURYHUKDXOLQFOXGLQJ further investments in knowledge and technology WKH XSJUDGLQJ RI WHDFKHUVp TXDOLƄFDWLRQV WHDFKLQJ infrastructure are required to support the economic PHWKRGVDQGUHVRXUFHV VHHGLVFXVVLRQLQFKDSWHU} GHYHORSPHQW RI SHULSKHUDO DUHDV 67, RIƄFHV VKRXOG Thailand’s current capacity to promote entrepreneurship be established throughout the country, serving as and spin-offs in universities and research institutions one-stop shops for innovators and researchers. LV LQVXIƄFLHQW WR VWLPXODWH WKH HPHUJHQFH RI D VROLG Branches of important research centres can be set up 50 EDVH RI WHFKQRORJ\ DQG NQRZOHGJHEDVHG ƄUPV close to universities. Technology services (e.g. testing To overcome this weakness, three complementary and demonstration) should be developed also at the actions are recommended: providing universities local level, in line with demand. Regional S&T parks and RTOs with stronger mandates to promote should be extended beyond the pilot phase, provided entrepreneurship; more focused initiatives (i.e. reducing they have good development prospects. On the the number of university business incubators (UBIs) education front, primary, secondary and vocational and concentrating resources in strategic sectors), and schools should progressively be reformed, inspired by the professionalization of UBIs (e.g. by encouraging innovative approaches such as the Mechai Pattana them to adopt more business-like approaches and 6FKRRO 7KLV UHTXLUHV PDMRU UHIRUP DV ZHOO DV KLJK structures, and hiring staff with strong experience in OHYHOVXSSRUWDQGVXEVWDQWLDOUHVRXUFHV,QWKHƄHOGRI the private sector). DJULFXOWXUHOLQNVEHWZHHQFHQWUDORIƄFHVDQGUHJLRQDO Commercialization of research and IP management provincial/district and tambon (sub-district) levels is also underdeveloped in Thai universities.51 At should be strengthened. Mechanisms for agricultural present, as universities have limited research that can extension could also be reinforced following internal be patented, commercialized or transferred (largely dialogue in the MoAC about main barriers to, and because research is conducted in isolation from best mechanisms for, effective technology diffusion industry), and IP regulations regarding government- VHH FKDSWHU} &HQWUHV SURYLGLQJ LQIRUPDWLRQ funded research are unclear, the main priorities in this training and advisory services have been set up by area should be to create greater awareness about different ministries at the local level, but with little IP and the commercialization of research; promote communication among them. The review of these clear and coherent institutional IP policies among centres currently being carried out by NSTIPO could research institutions; agree on and approve legislation be valuable in helping to rationalize their organization CHAPTER II : THAILAND’S INNOVATION SYSTEM: CRITICAL OBSERVATIONS AND POLICY RECOMMENDATIONS 41

and encouraging more user-oriented (e.g. one-stop STI awareness and policy activities at the local level). centres), rather than ministry-directed centres. In addition, a mandate on STI should eventually be Most policymaking, notably STI policy, is concentrated provided to regional governments. The establishment in Bangkok. Efforts to decentralize STI policy by of regional STI councils composed of stakeholders from nominating deputy regional governors as chief regional local administration, industry and academia/training VFLHQWLVW RIƄFHUV KDYH QRW ZRUNHG )RU WKH HIIHFWLYH institutions could help develop awareness of local STI development of STI policies at the regional level, it will needs. Some middle-income countries, such as Peru, be necessary to develop local awareness and capacity- have built STI policymaking capabilities at the regional building for STI policymaking (based on a survey of OHYHOZKLFKRIIHUOHVVRQVIRU7KDLODQG ER[}

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Peru’s regional STI councils, decentralized versions of the national STI council, are formulating STI policies at the regional OHYHOVXSSRUWLQJWKHFUHDWLRQRIUHJLRQDO67,DJHQGDVDQGSURPRWLQJQHZVRXUFHVRIƄQDQFLQJIRU67, These organs of the regional governments – composed of government representatives, and representatives of sectoral R&D institutes, universities, companies and civil society – help create a consensus and empower the regions in STI matters. They have contributed to the development of STI capacities at the regional level by generating awareness among regional policymakers on the relevance of STI, promoting linkages among actors at the regional level, providing access to schemes that promote STI (e.g. innovation funds, training and research groups) and stimulating the creation and functioning of technology parks. Source: UNCTAD

([SDQGLQJLQWHUQDWLRQDO foreign and domestic businesses. Some countries, FRQQHFWLRQV such as Ireland and Malaysia, offer examples of business linkage programmes that have worked well. Thailand has developed multiple international .H\ DFWLRQV LQFOXGH FDUHIXO VHOHFWLRQ RI ORFDO ƄUPV connections to support the development of domestic WKDW FRXOG EHQHƄW IURP VXFK SURJUDPPHV WKURXJK technological capabilities, but at times these are rigorous assessment of their capabilities, and clear FRQWUDGLFWRU\ RU LQVXIƄFLHQW 2Q WKH RQH KDQG TNC engagement to support part of the programmes’ Thailand has collaborated actively with foreign sources costs. Business linkage programmes should have of knowledge (e.g. when designing tertiary education ZHOOGHƄQHGREMHFWLYHV*HQHUDOO\WKH\VKRXOGLQFOXGH VFKHPHV DQG KDV ƄQDQFHG WKH WUDLQLQJ DEURDG RI WHFKQLFDODVVLVWDQFHWUDLQLQJDQGFHUWLƄFDWLRQVHUYLFHV 53 IXWXUHSXEOLFDGPLQLVWUDWLRQRIƄFLDOVDQGUHVHDUFKHUV and should be given high visibility. which have enabled greater learning opportunities, In Thailand, there is a marked absence of foreign eval- access to international networks of knowledge and XDWRUVLQJRYHUQPHQWIXQGHGVFLHQWLƄFSURJUDPPHV the building of domestic capabilities. On the other except, of course, in bilateral and multilateral pro- hand, as foreign companies, mainly TNC, are seen grammes. Thailand should continue to strengthen as the main sources of new technology, policies have LWV SDUWLFLSDWLRQ LQ LQWHUQDWLRQDO VFLHQWLƄF QHWZRUNV often focused on attracting FDI to the detriment of WKURXJK WKH H[SDQVLRQ RI SURJUDPPHV WKDW VSHFLƄ- developing the technological capabilities of domestic cally support research networks in areas of national ƄUPVWKHUHE\SHUSHWXDWLQJDQXQVXVWDLQDEOHVLWXDWLRQ interest, such as the Golden Jubilee PhD Program of technological dependency.52 Thailand’s future cannot ER[} ZKLFKVHHPVWREHXVHIXOEXWFXUUHQWO\EHQ- depend on external drivers; its indigenous capabilities HƄWVRQO\DUHODWLYHO\VPDOOQXPEHURISHRSOH – which also condition the country’s absorptive capacity for increasingly sophisticated foreign 7DNLQJDGYDQWDJHRIPHJDSURMHFWV technologies – should be gradually strengthened. Measures for fostering those capabilities, as described 1DWLRQDOLQIUDVWUXFWXUHSURMHFWVEHFDXVHRIWKHLUVL]H earlier, can be complemented with policy measures offer unique opportunities to boost domestic innovative that promote technology transfer from foreign capabilities, if they are well designed and implemented. investors through the fostering of linkages between 7KDLODQGpVUDLOZD\PHJDSURMHFWFDQJHQHUDWHWHFKQRORJ\ 42 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

spillovers and support the development of trained should also highlight initiatives by industries (e.g. PTT), engineers as well as the acquisition of technological universities (e.g. KMUTT) and schools (e.g. Mechai FRPSHWHQFHVDPRQJORFDOƄUPV Pattana) that illustrate creativity and dynamism. Leadership courses on STI and national development An open, transparent, large-scale consultation could be organized to encourage the mobilization of process would ensure that the development of human private and public sector leaders around common resources and the generation of technology spillovers goals. In addition, a few straightforward measures are an integral part of the programme. For this, it may (such as reviewing institutional key performance be necessary to create greater awareness among indicators and research careers, and clarifying IP actors of the potential that public procurement offers policy for publicly funded research) could rapidly help IRU JHQHUDWLQJ WHFKQRORJLFDO H[WHUQDOLWLHV +XPDQ enhance much-needed collaboration among actors. UHVRXUFHV GHYHORSPHQW +5' DQG WKH EXLOGLQJ RI In parallel, the Government should pledge support to GRPHVWLF FDSDELOLWLHV WKURXJK HIƄFLHQW WHFKQRORJ\ transfer from foreign contractors should be an explicit 67,DWLWVKLJKHVWOHYHOVDQGWDNHVSHFLƄFPHDVXUHV to demonstrate its commitment, including addressing REMHFWLYH RI WKH UDLOZD\ SURJUDPPH DQG VKRXOG EH the functioning of the National STI Committee, using DFFRPSDQLHGE\ZHOOGHƄQHGDFWLRQVUHVSRQVLELOLWLHV more inclusive consultation processes and conducting and monitoring mechanisms. This will be key to an independent evaluation of STI institutions. successfully developing Thailand as a transport services hub for South East Asia. Second, Thailand could expand the impact of its innovation efforts by replicating existing effective 3ULRULWL]LQJWKHDJHQGD6KRUW SURJUDPPHV DQG VFDOLQJ XS XVHIXO SLORW SURMHFWV WHUPSHUVSHFWLYHVDQGORQJWHUP For example, it could consider replicating successful GHYHORSPHQWV cooperative education models, expanding the ITAP PRGHO DQG GHYHORSLQJ IRXU IXOO\ƅHGJHG LQFXEDWLRQ The policy proposals presented earlier aim at overcoming programmes outside Bangkok. These initiatives several tensions or biases affecting the Thai innovation demand substantial efforts at a high level, but offer system, such as: remaining in the comfort zone even greater prospects of accomplishing broader and while aiming to escape the middle-income trap; the longer lasting change. tendency to create additional institutions instead of Third, to support strategic and durable advancement, rationalizing existing structures; providing autonomy it would be vital to work on a new law that provides while maintaining control; moving on from a linear D ZHOOGHƄQHG IUDPHZRUN IRU WKH ZKROH 67, SROLF\ understanding of innovation towards more systemic ZLWK D ORQJWHUP SHUVSHFWLYH ,W VKRXOG LQFOXGH ƄUP approaches; and exploiting more internal drivers, in engagements on budget allocations, well-designed addition to external ones, to achieve productivity gains. reorganizations of institutions in charge of STI and An additional tension is the desire for visible results R&D policies and programmes, the introduction of in the short term in an area that requires long-term new policy instruments (e.g. matching funds, public investments and persistent action. Smart approaches procurement), and robust monitoring and evaluation to strategic reform in change-resistant countries mechanisms combined with various rewards and generally consist of gradual processes in which quick- VDQFWLRQV7KHRYHUDOOREMHFWLYHLVWRDGMXVWEHKDYLRXUDO win initiatives create a climate more open to change SDWWHUQVWRPDNHWKHZKROH67,V\VWHPPRUHHIƄFLHQW and help prepare the ground for greater reforms. Given and capable of managing the challenges faced by WKHVSHFLƄFFRQWH[WRI7KDLODQGWKUHHFRPSOHPHQWDU\ Thailand. Another pressing goal should be to build lines of actions should be implemented without delay. support for much-needed educational reform. Such reform should focus on, among others, promoting First, quick-win initiatives could be taken to critical thinking skills and innovation-friendly attitudes, demonstrate the innovation capabilities of Thai society and building stronger linkages between educational as well as the Government’s commitment to making institutions and the economy. STI central to its national development strategy. Awareness campaigns could be launched to showcase Box 2.11 provides an overview of the key strategic promising innovations supported by ITAP and NIA, as thrusts, and the suggested lines of action for ZHOO DV VLJQLƄFDQW LGHDV DQG WHFKQRORJLHV HPHUJLQJ achieving them. A number of the actions suggested from Thailand’s R&D networks. Such campaigns DUHGLVFXVVHGLQFKDSWHUV}DQG CHAPTER II : THAILAND’S INNOVATION SYSTEM: CRITICAL OBSERVATIONS AND POLICY RECOMMENDATIONS 43

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1.1. Increase awareness on the danger of staying in the comfort zone and the systemic nature of innovation • Launch awareness campaign showcasing innovative initiatives • Build commitment for STI education and training reform (particularly VTET, innovation skills & industry linkages) 1.2. Increase accountability through effective evaluation and conditional budget allocation (see actions 5.4, 5.5)

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2.1 Provide training for policymakers and other stakeholders • 'HOLYHUƄUVWWUDLQLQJFRXUVHVIRUSROLF\PDNHUV • Establish an STI policy training institute 2.2 Strengthen STI consultation processes • Include high-level representatives of business organizations, trade unions, academia and civil society in the National STI Policy Committee • Enhance the timely provision of clear and reliable STI data and make that data public 2.3 Agree on a common agenda for reform of STI education and training • Launch national reform of existing TVET • Launch a national initiative (comprehensive set of policies and programmes) to promote entrepreneurship • Agree on a set of actions to encourage industry linkages with research, education and training institutions (see thrust 6) • Expand business and farmers’ associations’ mandates to include the promotion of technological upgrading 2.4 Develop a long-term vision for agriculture • Articulate an innovation roadmap to address: land-holding fragmentation, water supply, soil quality and human resources • Develop a long-term soil improvement strategy, including actions to reduce chemical inputs and encourage precision farming • Promote adoption of a national biosafety regime, following multi-stakeholder discussions

6WUDWHJLFWKUXVW%DODQFHVRFLDOHQYLURQPHQWDODQGHFRQRPLFREMHFWLYHV

'HVLJQ67,LQFHQWLYHVWREHQHƄWGLVDGYDQWDJHGJURXSV VPDOOHUƄUPVIDUPHUVUHJLRQVRXWVLGH%DQJNRN • Set an inclusive innovation agenda to promote innovation by and for local communities (e.g. social enterprises) • ([SDQGWKHXVHRIƄQDQFLDOLQVWUXPHQWVIRUVXSSRUWLQJ60(LQQRYDWLRQLQFOXGLQJPDWFKLQJIXQGV • Develop locally based sectoral innovation centres/actors that support SMEs • Increase the percentage of funds for translational research • Expand businesses, technological and testing services beyond Bangkok (see action 7.1) 3.2 Follow up on the actions suggested in Thailand’s climate change technology needs assessment reports • Set up a national, cross-ministerial committee to take the actions forward 3.3 Develop a strategy for STI in agriculture that focuses on the poor • Strengthen extension services (or other means of technological knowledge transfer to/from farmers) • Encourage linkages between central and regional/local actors (see action 6.6) • Ensure that agriculture-related R&D investments help small-scale farmers (see action 5.6) 44 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

6WUDWHJLFWKUXVW6WUHQJWKHQ67,JRYHUQDQFHDQGPDQDJHPHQW

4.1. Strengthen the role of the National STI Policy Committee • Consider measures to ensure the Prime Minister’s regular and effective participation in the Committee • Expand the Committee to include the Minister of Finance, and high-level representatives of business organizations, trade unions, academia and civil society. • The NRCT should report to the Committee 4.2. Separate policy advice from programme implementation • Review mandates of NSTDA (to focus on carrying out research), NSTIPO (to focus on innovation policy design and evaluation) and NRCT (to focus on R&D policy) 4.3. Rationalize the structures of R&D institutions, following an independent evaluation of STI institutions • Conduct an independent evaluation of STI institutions to guide rationalization efforts • Based on the evaluation, rationalize the structure of R&D institutions 4.4 Enhance coordination between research, education and industry • Set up a formal coordination mechanism (for example, under the National STI Policy Committee) • Develop a robust labour market information system 4.5 Review educational quality assurance and quality enhancement systems • Strengthen measures to address underperforming educational institutions • Over time, raise the performance standards of all higher education institutions • Progressively link budgets to performance • Review the quality and relevance of skills development training, and take measures to improve them

6WUDWHJLFWKUXVW,PSURYHUHVRXUFHPDQDJHPHQW

5.1 Prioritize resources: Build a critical mass

8SGDWHWKHPL[RIƄQDQFLQJLQVWUXPHQWVIRUVXSSRUWLQJLQQRYDWLRQ • Promote the use of matching innovation funds • Review the impact of current tax incentives for R&D and innovation before proposing more generous tax incentives

8VHSXEOLFSURFXUHPHQWWRGHYHORSWHFKQRORJLFDOFDSDELOLWLHVRIGRPHVWLFƄUPV(see thrust 9) 5.4 Introduce effective monitoring and evaluation systems • 3URYLGHWKH1DWLRQDO67,3ROLF\2IƄFHZLWKDVWURQJPDQGDWHIRUPRQLWRULQJDQGHYDOXDWLQJ67,SROLFLHV • Develop strong M&E guidelines that encourage the measuring of outputs and impact, institutional learning, HQJDJLQJRILQGHSHQGHQWHYDOXDWRUVVWDNHKROGHUSDUWLFLSDWLRQLQ0 (DFWLYLWLHVDQGSXEOLFDWLRQRIWKHƄQGLQJV of M&E activities • Provide training on M&E to STI policymakers and programme managers 5.5 Budget allocation processes to be transparent, based on performance • Link STI budget allocations to performance • 5HYLHZEXGJHWLQJSURFHVVHVWRLQFUHDVHFRQƄGHQFHLQWKHDYDLODELOLW\DQGGLVWULEXWLRQRIIXQGVIRUPXOWL\HDU programmes that perform according to plan 5.6 Strengthen the impact of R&D programmes on raising opportunities for, and productivity of, small-scale farmers • Review the impact of past R&D programmes • Review the process of decision-making on research topics and for assigning grants CHAPTER II : THAILAND’S INNOVATION SYSTEM: CRITICAL OBSERVATIONS AND POLICY RECOMMENDATIONS 45

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6.1 Expand schemes at the interface between the sources and the demand for knowledge • Expand ITAP and consider making it autonomous from NSTDA. • Upgrade the capabilities of intermediate organizations to offer training in critical skills and to start R&D programmes • Build support for the three regional science parks (in the north, north-east and south) 6.2 Review incentives for mobility and collaboration • Review institutional key performance indicators to evaluate university and research institutions on their ability to collaborate with industry, provide services and transfer technology • Progressively increase the proportion of research organizations’ budgets to be funded from contracts • )RUPDOO\YDOXHSXEOLFUHVHDUFKHUVpSDUWLFLSDWLRQLQLQGXVWULDOUHVHDUFKDQGLQSURYLGLQJDGYLVRU\VHUYLFHVWRƄUPV • Adopt a clear IP policy for publicly funded research • Relax restrictions on mobility in public scholarship programmes • Support researchers’ mobility programmes (e.g. Researchers for Research in Industry, Talent Mobility) by DGMXVWLQJLQFHQWLYHVWRPRELOLW\ 6.3 Promote cooperative education • Expand successful cooperative education models (e.g. Mechai Pattana, work integrated learning, KMUTT practice schools) • 2YHUKDXOPDLQVWUHDP79(7XSJUDGHWHDFKHUVpTXDOLƄFDWLRQVWHDFKLQJPHWKRGVDQGUHVRXUFHV • Conduct an independent evaluation of non-formal TVET (skills development programmes) and take measures to enhance the quality of the training 6.4 Strengthen business incubation programmes and support research spin-offs and commercialization • (VWDEOLVKIRXUIXOO\ƅHGJHGLQFXEDWLRQSURJUDPPHVRXWVLGH%DQJNRN • Strengthen mandates for entrepreneurship and technology transfer in universities and RTOs • 3URIHVVLRQDOL]H XQLYHUVLW\ EXVLQHVV LQFXEDWRUV DQG WHFKQRORJ\ OLFHQVLQJ RIƄFHV SURPRWH EXVLQHVVOLNH approaches and appoint staff with extensive private-sector experience to lead them), and provide further training on technology transfer to managers and researchers • Support commercialization of research: expand translational R&D funds and common scale-up facilities 6.5 Strengthen formal participation of a wider range of stakeholders in programme design, implementation and evaluation • Train researchers and their managers on how to include users in the design of R&D programmes • Support research processes that promote collaboration with industry and social partners (expand the use of FROODERUDWLYHPDWFKLQJJUDQWVSURYLGHVXSSRUWDQGPDWFKLQJVHUYLFHVWRIDFLOLWDWHMRLQWUHVHDUFK • Establish mechanisms (e.g. multi-stakeholder management committees and evaluation teams) to formally involve users in R&D and innovation programme design, implementation and evaluation 6.6 Strengthen linkages in agriculture • Review incentives for collaboration between MOAC central research deptartments and other publicly funded research institutions • 6WUHQJWKHQ OLQNDJHV EHWZHHQ FHQWUDO RIƄFHV DQG UHJLRQDO SURYLQFLDOGLVWULFWVXEGLVWULFW OHYHOV EDVHG RQ D study of best practices • Strengthen the mechanisms for agriculture extension, following MOAC internal dialogue • Develop mechanisms to solicit inputs to decision-making from agricultural coops, and local and provincial authorities • Increasingly support access to and use of e-government and agriculture 46 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

6WUDWHJLFWKUXVW6XSSRUWGHFHQWUDOL]DWLRQ

7.1. Expand STI infrastructure and networks in the regions • (VWDEOLVKPRUHRQHVWRS67,RIƄFHV • Offer increasing technological services in the regions (in line with demand) • Build support for the three regional science parks (in the north, north-east and south) 7.2. Develop STI policymaking capacities at the regional level • Conduct a survey of STI awareness and policy activities at the local level • Set up regional STI policy councils • As local capacities develop, increase regional mandates for STI policies 7.3. Expand school models that promote innovation and local development • Support adoption of the Mechai Pattana School model in other districts 7.4. Reinforce agricultural extension services • Devise a strategy and earmark funds to strengthen local agricultural STI capacities and enable farmer-driven innovation

Strategic thrust 8: Expand international connections

%XLOGEXVLQHVVOLQNDJHVEHWZHHQ71&VDQGORFDOƄUPV • (VWDEOLVKDSURJUDPPHXQLWWRVXSSRUWEXVLQHVVOLQNDJHVEHWZHHQ71&VDQGORFDOƄUPV 8.2 Engage international experts on STI policies and programme design and evaluation • Engage international experts in the evaluation of STI institutions 8.3 Maximize international collaboration and mobility • Continue supporting international research and training networks, particularly on topics of national interest • Facilitate work permits for highly skilled labour (reviewing employment restrictions) • Continue supporting language skills to further Thailand’s integration in teaching and research networks • &RQVLGHUDSURJUDPPHWRDWWUDFWIRUHLJQH[SHUWVWRƄOOVSHFLƄFVNLOOVJDSVDQGHQODUJHLQWHUQDWLRQDOFRQQHFWLRQV

Strategic thrust 9: Take advantage of megaprojects

9.1 Ensure that human resources development (HRD) and the generation of technology spillovers are an integral part of the railway project • 6HWVSHFLƄFDLPVDQGREMHFWLYHVIRU+5'DQGWHFKQRORJ\VSLOORYHUVLQWKHPDLQUDLOZD\SURMHFWSODQ • 6HWDVSHFLƄFEXGJHWDOORFDWLRQIRU+5' IRUH[DPSOH}SHUFHQWRIWRWDOSURMHFWEXGJHW • 0DNHDPRUHGHWDLOHGDVVHVVPHQWRI+5'QHHGVDQGLGHQWLI\GRPHVWLFLQGXVWULDODUHDVZLWKGHYHORSPHQW potential 9.2 Make technology transfer an explicit objective of public procurement for the railway project • ,QIRUPSROLF\PDNHUVDQGƄUPVRIWKHRSSRUWXQLWLHVIRUWHFKQRORJ\WUDQVIHURIIHUHGE\SXEOLFSURFXUHPHQW • ,QFOXGHWHFKQRORJ\WUDQVIHUFRQVLGHUDWLRQVLQSXEOLFSURFXUHPHQW HJORFDOFRQWHQWSURYLVLRQVWKDWIDYRXUMRLQW YHQWXUHVZLWKORFDOƄUPVUHTXLUHPHQWVIRUWKHWUDLQLQJRIORFDOHQJLQHHUVDQGWHFKQLFLDQV CHAPTER II : THAILAND’S INNOVATION SYSTEM: CRITICAL OBSERVATIONS AND POLICY RECOMMENDATIONS 47 and R & D and institutes extension MOD others Dept Revenue MOF incentives Fiscal R & D NRCT NRCT Office Private sector PM Office TRF Firms and farms PM and S & T institutes NSTDA and other R & D 16 Agencies MOST NESDB HSRI R & D and institutes extension QQRYDWLRQSROLF\V\VWHPRI7KDLODQG MOPH CABINET MOST MOF = Ministry of Science and Technology MOPH MOD = Ministry of Finance = Ministry of Public Health NSTDA SIPA = Ministry of Defense = National Science and Technology Development Agency TRF HSRI = Software Industry Promotion Agency ARDF = Thailand Research Fund = Health Systems Research Fund DIP = Agricultural Research and Development Fund = department of Intellectual Property DIP Agency NITC MOC IP Protection SIPA BUDGET BUREAU Support institutes MICT STIPC and Support MOI programs institutes ARDF R & D and institutes extension MOAC STI (Secretariat) Policy flow Budget flow STI PM STIPC = National Science Technology and Innovation Policy Office NESDB = Prime Minister = National Science Technology and Innovation Policy Committee NRCT = National Economic and Social Development Board NITC = National Research Council of Thailand MOE MOAC = National Information Technology Committee MOI = Ministry of Education = Ministry of Agriculture and Cooperatives MICT MOC = Ministry of Industry = Ministry of Information and Communication Technology = Ministry of Commerce schools colleges, MOE Universities, Level I (National policy-making) Level II (Ministerial policy-making) Level III (Policy-executing) Level IV (Operation/Utilization) 'XURQJNDYHURMD $QQH[ 2UJDQL]DWLRQDOVWUXFWXUHRIWKHVFLHQFH WHFKQRORJ\ DQGL Source: 48 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

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Mission and objectives 1. Development of science, technology and innovation for building a quality society that is immune to changes • To promote public health and well-being • To support the development of a knowledge- based society • To strengthen local communities through capacity development, thus reinforcing an effort to promote decentralization and inclusive growth 2. Development of science, technology and innovation for improving the quality and stability of economic growth with connectivity to regional and global economy • To increase productivity and value added to manufacturing and service sectors • To support the green and value creation of products and services • To support the improvement of standards of products and services to overcome trade barriers 3. Development of science, technology and innovation for confronting climate change • To develop models for natural resource and environmental forecasting • To adapt to and mitigate climate change • To support balanced management of natural resources and environment 4. Development of science, technology and innovation human resources to confront demographic changes • To support the reform of science education and technical education • 7RUDLVHWKHQXPEHUDQGFDSDFLW\RIVFLHQWLƄF and technical workforce that meets the needs of the economy and society 5. Development of STI infrastructure and enabling factors to enhance national competitiveness • To build and decentralize STI infrastructure • 7RFUHDWHƄVFDODQGƄQDQFLDOWRROVPDUNHWODZ CHAPTER II : THAILAND’S INNOVATION SYSTEM: CRITICAL OBSERVATIONS AND POLICY RECOMMENDATIONS 49

NOTES

1 See, for example, Felipe, 2012

2 See, for example, Freeman, 1987; Lundvall, 1992; Nelson, 1993; see also UNCTAD (2011) for a description of the systemic approach to innovation that underpins the STIP Review process.

3 +XPDQUHVRXUFHVLVVXHVDUHGLVFXVVHGLQGHWDLOLQFKDSWHU}

4 7KHLQGXVWULDOVHFWRUUHSUHVHQWV}SHUFHQWRIWKHYDOXHDGGHGRIWKHHFRQRP\ :RUOG%DQN:RUOG'HYHORSPHQW Indicators)

5 %DVHGRQGDWDIURP6FLPDJR-RXUQDODQG&RXQWU\ 6&- UDQNLQJV KWWSZZZVFLPDJRMUFRP

6 7KHVHLQGXVWULHVKDYHWKHODUJHVWVKDUHRIƄUPVFRQGXFWLQJ5 'LQKRXVH 1DWLRQDO67,3ROLF\2IƄFH

7 7KH7KDL60(3URPRWLRQ$FW FODVVLƄHV60(VGHSHQGLQJRQWKHLUVHFWRU6PDOOƄUPVDUHWKRVHZLWKOHVV WKDQHPSOR\HHVRUOHVVWKDQ}PLOOLRQEDKWLQƄ[HGDVVHWVDQGPHGLXPƄUPVWKRVHZLWKŸHPSOR\HHVRU EHWZHHQDQG}PLOOLRQEDKWLQƄ[HGDVVHWV+RZHYHUWKHVHSDUDPHWHUVDUHGLIIHUHQWIRUZKROHVDOHUDQGUHWDLOHU ƄUPV 2(&'

8 $FFRUGLQJWR*(0HWDO }SHUFHQWRIHDUO\VWDJHHQWUHSUHQHXUVDQG}SHUFHQWRIHVWDEOLVKHGEXVLQHVV owners exclusively serve the domestic market.

9 60(VpH[SRUWVE\YDOXHDFFRXQWHGIRURQO\}SHUFHQWRIWKHLU*'3FRPSDUHGZLWK7KDLODQGpVRYHUDOOH[SRUWV ZKLFKDFFRXQWHGIRU}SHUFHQWRIWKHQDWLRQDO*'3 260(3

10 On this indicator Thailand ranking is 66 as opposed to 48 in the overall Global Innovation Index.

11 ,QIRUPDWLRQSURYLGHGE\ƄHOGLQWHUYLHZVGXULQJWKH81&7$'PLVVLRQLQ2FWREHU

12 %DVHGRQƄHOGLQWHUYLHZVGXULQJWKH81&7$'PLVVLRQV 2FWDQG-XQH DQGDURXQGWDEOHGLVFXVVLRQ with business incubators in February 2014.

13 See, for example, Chunhavuthiyanon and Intarakumnerd (2014) for a discussion on the need to update the role of the National Food Institute to adequately respond to the new strategies and capability requirements of Thai food exporters.

14 $VUHSRUWHGGXULQJƄHOGLQWHUYLHZVLQ2FWREHU

15 $VUHSRUWHGGXULQJƄHOGLQWHUYLHZVLQ2FWREHU

16 Oral communication with TISTR’s management.

17 6HHFKDSWHU}IRUDPRUHGHWDLOHGDQDO\VLVRI7KDLODQGpVHGXFDWLRQV\VWHP

18 %DVHGRQGDWDSURYLGHGE\WKH67,3ROLF\2IƄFH

19 7KH\ FRPSULVH SXEOLF XQLYHUVLWLHV DXWRQRPRXV XQLYHUVLWLHV RSHQ DGPLVVLRQ XQLYHUVLWLHV 5DMDEKDW XQLYHUVLWLHV XSJUDGHGWHDFKHUWUDLQLQJFROOHJHV 5DMDPDQJDOD WHFKQLFDODQGFRPPHUFLDOFROOHJHV DQGSULYDWH colleges and universities.

20 ,QWKHƄYHLQVWLWXWLRQVWKDWSXEOLVKHGWKHPRVWVFLHQWLƄFDQGWHFKQRORJLFDOSDSHUVZHUH0DKLGRO8QLYHUVLW\ (1,317 papers), Chulalongkorn University (1,252 papers), Chiang Mai University (700), Kasetsart University (473 SDSHUV DQG3ULQFHRI6RQJNOD8QLYHUVLW\ ZLWKDFLWDWLRQUDWLRDYHUDJLQJŸSHUSXEOLFDWLRQ 1DWLRQDO67, 3ROLF\2IƄFH

21 $VQRWHGLQLQWHUYLHZVZLWKWKHSULYDWHVHFWRUDQGFRQƄUPHGE\WKH2IƄFHRIWKH9RFDWLRQDO(GXFDWLRQDO&RPPLVVLRQ (OVEC).

22 Intermediary organisations may perform a plethora of functions including: foresight, information scanning and processing, knowledge processing and combination, brokering, testing and training, accreditation, regulation, IP, FRPPHUFLDOL]DWLRQWHFKQRORJ\DVVHVVPHQW +RZHOOV

23 See, for example, Brimble and Doner, 2007; and Chunhavuthiyanon and Intarakumnerd, 2014.

24 )RUIXUWKHUGHWDLOVVHHFKDSWHU}

25 The National Science Technology and Innovation Policy and Plan 2012-2021. 50 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

26 At the time of the interviews (October 2013) the Prime Minister had not chaired any of its meetings for two years

27 Interviews by UNCTAD’s STIP Review team point to an increase of 10 per cent.

28 For a detailed description and analysis of some existing schemes, see Intarakumnerd et al., 2011.

29 As reported in interviews in October 2013.

30 Information provided by the Ministry of Industry.

31 7KHSULYDWHHTXLW\PDUNHWLQ7KDLODQGLQDPRXQWHGWR}PLOOLRQFRPSDUHGZLWK}PLOOLRQLQ6LQJDSRUH (see Wonglimpiyarat, 2013)

32 The data on tax incentives presented in this section are drawn from Intarakumnerd et al., 2011.

33 %\ZD\RIFRPSDULVRQWKH)UHQFKWD[LQFHQWLYHWKHODUJHVWDPRQJ2(&'FRXQWULHVDPRXQWVWRDWRWDORI}ELOOLRQ euros/year (OECD, 2014b)

34 See: www.sc.mahidol.ac.th/research/shrimp.htm.

35 This is mainly because often such evaluations are not available, but also because there is widespread reluctance to share the results of evaluation studies.

36 %DVHGRQLQWHUYLHZVZLWKVWDNHKROGHUVLQ2FWREHUDQGRQ167'$HYDOXDWLRQpVH[HFXWLYHVXPPDU\ Ÿ

37 For instance, the North Eastern Science Park does not yet have a dedicated infrastructure. The Park has a staff of 15 that support business incubation services, technology consulting services (through ITAP, and a technology OLFHQVLQJRIƄFH DQGDSURGXFWGHVLJQFHQWUH$PLOOLRQEDKWSURSRVDOIRUEXLOGLQJLQIUDVWUXFWXUHIRUDVFLHQFH SDUN LQFOXGLQJ VSDFH IRU Ÿ ƄUPV ODERUDWRULHV DQG D SLORW SODQW IRU IRRG DQG SKDUPDFHXWLFDOV KDV EHHQ submitted to MOST. The private sector is not participating in this proposal.

38 6HHFKDSWHU}IRUDGHWDLOHGDQDO\VLVRI67,UHODWHGKXPDQUHVRXUFHV

39 As pointed out in OECD, 2013b.

40 6HHFKDSWHU}IRUPRUHGHWDLOVRQXQLYHUVLW\LQGXVWU\OLQNDJHV

41 )RULQVWDQFHWKH1DWLRQDO(GXFDWLRQ$FWRIDQGWKH1DWLRQDO67,3ROLF\DQG3ODQŸ

42 The Berne Convention (in force since 1931), the Agreement on Trade-related Aspects of Intellectual Property Rights (TRIPS, 1994), the Paris Convention (August 2008), the Patent Cooperation Treaty (December 2009) and the WIPO Convention (1989), and is preparing to sign up to the Madrid protocol.

43 $VUHSRUWHGGXULQJƄHOGLQWHUYLHZVLQ2FWREHU

44 )RUH[DPSOHJHQHUDWLQJVXSSRUWWKURXJKKLJKOHYHOEULHƄQJVWRWKH3ULPH0LQLVWHU

45 Additional ministers may be invited on an ad hoc basis. For example, the Minister of Labour should be invited when issues of international mobility of high-skilled labour and labour permits are to be discussed.

46 ,Q'HFHPEHUDPRUHJHQHURXVWD[GHGXFWLRQUDWHRI}SHUFHQWRI5 'FRVWVZDVEHLQJFRQVLGHUHG

47 The scarcity of basic statistics relating to institutional budgets, human resources, activities, outputs and impacts for the elaboration of this report is a worrying indication of the lack of sound and transparent monitoring and evaluation systems.

48 For detailed discussions on the role of intermediary organizations in Thailand and suggestions for policy actions to strengthen them, see Intarakumnerd and Chaoroenporn, 2013.

49 7KHVHDQGRWKHUSURJUDPPHVDUHGLVFXVVHGLQFKDSWHU}

50 )RUDIXOOGHVFULSWLRQRI7KDLODQGpVEXVLQHVVLQFXEDWRUVVHHVHFWLRQLQFKDSWHU}

51 )RUDGLVFXVVLRQRQFRPPHUFLDOL]DWLRQRIUHVHDUFKLQ7KDLODQGVHHVHFWLRQLQFKDSWHU}

52 )RULQVWDQFHDVLQGLFDWHGE\7KDLODQGpVLQFUHDVLQJGHƄFLWLQWKHWHFKQRORJLFDOEDODQFHRISD\PHQWV VHHFKDSWHU}

53 For a brief description of the Irish linkages programme (put in place in the late 1980s) see World Bank, 2010: 239; IRUWKH0DOD\VLDQH[DPSOHVHHVHFWLRQLQFKDSWHU} III

Smallholder farming in Thailand’s agricultural innovation system 52 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

A. INTRODUCTION DURXQG}SHUFHQWRIWKHUXUDOSRSXODWLRQLQWKHV %URRNV WR}SHUFHQWLQ 81'3 Agricultural development in Thailand in the past 50 +RZHYHUVPDOOKROGHUKRXVHKROGVFROOHFWLYHO\DFFRXQW years is considered, in many respects, a development IRUWKHPDMRULW\RIWKHSRRU4 Therefore, to continue to success story (Leturque and Wiggins, 2011; Brooks, DFKLHYHVLJQLƄFDQWDQGVXVWDLQDEOHSRYHUW\UHGXFWLRQ 2010). From the 1960s to the early 1980s, the the underlying structural problems in small-scale sector was the country’s engine of growth, growing agriculture will need to be addressed. E\ DURXQG } SHU FHQW DQQXDOO\ DV D UHVXOW RI WKH continuous incorporation of land and low-cost labour,1 Thailand’s agricultural landscape is likely to undergo and agricultural exports (rice in particular) were heavily VLJQLƄFDQW FKDQJHV RYHU WKH FRPLQJ GHFDGHV taxed to support industrialization(Leturque and Land has become increasingly fragmented due Wiggins, 2011). From the 1980s onwards, agricultural to inheritance of small farms by multiple heirs, but JURZWK VORZHG GRZQ WR Ÿ} SHU FHQW SHU \HDU DV also because relatively few younger people wish to labour left agriculture to work in other sectors and it continue to farm. Agricultural land may either be lost EHFDPHKDUGHUWRH[SDQGODQG+RZHYHUWKURXJKD or consolidated into larger-sized farms. Corporate WUDQVIRUPDWLRQSURFHVVRIFURSGLYHUVLƄFDWLRQ ZLWKWKH IDUPLQJ PD\ LQFUHDVH ZKHUH ODUJH SURGXFHU ƄUPV introduction of new important crops such as rubber buy large numbers of small holdings, and land reform DQG FDVVDYD LQWHQVLƄFDWLRQ WKURXJK D JUHDWHU XVH programmes may be implemented that change land of fertilizers and machinery) and the introduction of ownership patterns. In addition, prevailing agricultural varietal improvements, land and labour productivity production patterns are facing threats from the impacts has improved markedly since the early 1990s of global climate change, including hydrological (Leturque and Wiggins, 2011). changes, increases in ambient temperatures, seasonal shifts, and more frequent and severe climate events 7KDLODQGLVQRZDPDMRUIRRGH[SRUWLQJFRXQWU\5LFH VXFK DV ƅRRGV $GDSWDWLRQ WR DQG PLWLJDWLRQ RI LV WKH PDLQ VWDSOH DQG DOVR D PDMRU H[SRUW LWHP ,Q climate change impacts are prominent on the policy 2008, Thailand was the largest exporter of rice in the agenda in Thailand.5,WLVGLIƄFXOWWRSUHGLFWWKHOLNHO\ ZRUOG ZLWK D } SHU FHQW VKDUH RI WKH LQWHUQDWLRQDO impacts of climate change on Thailand’s agriculture market (Isvilanonda, 2009). In the same year, it was sector. The results of a climate modelling exercise also the largest exporter of rubber, cassava, canned LQGLFDWHGWKDWWKHOLNHO\LPSDFWRQPDMRUFURSVZRXOG pineapple, and processed shrimp and chicken; the YDU\VLJQLƄFDQWO\EHWZHHQFURSVDQGEHWZHHQUHJLRQV second largest exporter of sugar cane; and the third 6 RI WKH FRXQWU\ 7DQJZLVXWLMLW Another study largest of palm oil (Isvilanonda, 2009; FAO, 2011). FODVVLƄHGWKHQRUWKHDVWHUQUHJLRQDVWKHPRVWKLJKO\ While agricultural output has continued to increase, its vulnerable, and the northern, eastern and southern VKDUHLQ*'3IHOOIURP}SHUFHQWLQWR}SHUFHQW regions as vulnerable (Supnithadnaporn et al., 2011). LQ WDEOH} ŸDW\SLFDOLQGLFDWLRQRIDPDWXULQJ Further uncertainty about the future agricultural LQGXVWULDOL]LQJFRXQWU\+RZHYHUWKHSURSRUWLRQRIWKH landscape has to do with the ageing farmer population DJULFXOWXUDOODERXUIRUFHKDVGHFOLQHGDWDVLJQLƄFDQWO\ and the lack of young people entering the sector, either lower rate,2DQGDURXQG}SHUFHQWRIWKHODERXUIRUFH as farmers or as agricultural engineers or scientists. is still dependent on this sector (NSO, 2014). Labour Fewer young people are engaged in agriculture in productivity is lower in agriculture than in other sectors, 7KDLODQGWKDQHYHUEHIRUH7KHPDMRULW\RI7KDLIDUPHUV as evidenced by the high proportion of employment (70 to 80 per cent7) are low-income smallholders with in agriculture but the small contribution of agricultural no formal education beyond elementary school. As output to GDP.3 The sector is still largely characterized educational levels have increased in rural areas in recent by labour-intensive farming on smallholdings and rain- decades, younger generations have become less likely fed crop production, as discussed later. to follow their parents into farming, preferring to seek Agricultural development and overall economic opportunities in other sectors. Vocational schools, and development have contributed to a drastic fall in agricultural colleges in particular, have seen a decline rural poverty, as farmer households have found LQQHZVWXGHQWQXPEHUVDQGXQLYHUVLWLHVƄQGLWKDUGWR HPSOR\PHQW LQ RWKHU VHFWRUV RU GLYHUVLƄHG WKHLU attract good students to agriculture-related courses. income sources (e.g. through family remittances The average age of farmers in Thailand is now 51 years DQG UXUDO QRQIDUP MREV 3RYHUW\ KDV GHFOLQHG IURP (Tanticharoen, 2011), and the sector may face serious CHAPTER III : SMALLHOLDER FARMING IN THAILAND’S AGRICULTURAL INNOVATION SYSTEM 53

labour shortages in the future, as landholding farmers unfavourable economies of scale and an increasing retire and are not replaced by the next generation. shortage of agricultural labour. Innovation at the level Even today, many low-income farmers cannot afford of smallholdings is essential not only to increase the cost of seasonal wage labourers and have already productivity, but also to raise farm incomes. Small- lost unpaid family labour as the younger members scale farmers collectively represent a large share of seek work away from the rural areas. the population whose welfare could improve through STI-driven growth. Improving access to technology Finally, the international markets for agricultural (i.e. knowledge) that meets their needs is an important and agriculture-related products are undergoing a challenge for public policy. Introducing innovation in SHULRG RI LQVWDELOLW\ DV D UHVXOW RI PDMRU FURS ORVVHV other agriculture-related areas (e.g. natural resource GXHWRH[WUHPHFOLPDWHUHODWHGHYHQWVLQVRPHPDMRU management or the processing and marketing of producer countries, the long-term effects of the 2007- agricultural commodities) and in other aspects of JOREDO ƄQDQFLDO FULVLV RQ 7KDLODQGpV WUDGLWLRQDO agriculture (e.g. water management, the use of native export markets, the emergence of new markets in varieties) is also key to agricultural development, but is fast-growing economies such as China, and growing beyond the scope of this study. competition in some areas8 that affect Thailand’s short- and long-term positions as an agricultural The remainder of the chapter considers two key exporter. Progressive economic integration in the questions: ASEAN community is likely to create both threats and • What are the main challenges for STI policy in the opportunities for Thai agricultural production. context of the existing policy environment? Thailand Vision 2027, which aims to achieve national • +RZHIIHFWLYHLVWKHQDWLRQDODJULFXOWXUDOLQQRYDWLRQ food and energy security, and environmentally-sound system in supporting innovation at the farm level? SURGXFWLRQ V\VWHPV UDLVHV VLJQLƄFDQW FKDOOHQJHV for the development of the agricultural sector. The 11th National Economic and Social Development B. OVERVIEW OF 3ODQ Ÿ UHFRJQL]HV WKDW D WUDQVIRUPDWLRQ AGRICULTURAL in Thai agriculture is needed to ensure that Thailand PDLQWDLQVDQGHQKDQFHVLWVSRVLWLRQDVDPDMRUZRUOG PRODUCTION food producer, and to ensure energy security, promote $URXQG}SHUFHQWRIODQGLQ7KDLODQGLVXVHGIRU environmental sustainability, and reduce existing agricultural production. The north-east is the most inequalities between regions, and between the rich LPSRUWDQWDJULFXOWXUDOUHJLRQRIWKHFRXQWU\ ƄJXUH} and the poor. Such a transformation will depend on the effective implementation, over the medium )LJXUH 3HUFHQWDJHRIWRWDODJULFXOWXUDOODQGE\ to long term, of a diverse set of well-designed and UHJLRQ complementary policies9 by different ministries. The Plan also explicitly recognizes the importance of S&T. For example, one guiding principle for the agricultural sector is to “utilize science, technology, innovation and creativity as fundamental elements in economic Southern Central UHVWUXFWXULQJr 1(6'% $ PDMRU FKDOOHQJH 14.5 19.4 for restructuring in agriculture will be to address competing demands on STI resources. The focus of this chapter is on small-scale individually Northern North-Eastern 21.5 RZQHGRUWHQDQWHGIDUPVZKLFKSURGXFHWKHPDMRULW\ 44.6 of the key crops in respect of food and energy security: rice, sugar, cassava, palm oil and rubber. Increasing productivity in these and other economically important crops depends crucially on smallholders’ abilities to make their production systems more HIƄFLHQW DQG HQYLURQPHQWDOO\ VXVWDLQDEOH LQ WKH face of challenging agro-environmental conditions, Source: 1DWLRQDO6WDWLVWLFDO2IƄFH 54 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

Thailand has four distinct geographical regions growing • The central region, which has moderate humidity GLIIHUHQWW\SHVRIFURSV ƄJXUH} DVIROORZV10 and the most fertile soils, is the historical rice basket of the country, with much irrigated land. In • The northern region is mostly high altitude, growing fertile, irrigated areas, two or three rice crops are predominantly rice and fruit. In the lowlands, rice is harvested annually, along with soybeans, peanuts, the main crop. sweet potatoes and other vegetables. This region • In the north-east, which is cool and dry, with low has high agricultural productivity but the lowest share of agriculture in its economy. fertility, shallow and sandy soils, rice is the main crop, though various other crops are also grown. • The south is humid, but has poor quality soils and It has the largest proportion of farmers but also LQVXIƄFLHQW VXQOLJKW WR SURYLGH KLJK FURS \LHOGV the lowest agricultural productivity and the highest Rubber is the most important crop, but oil palm, incidence of rural poverty. coconut and fruit trees are also grown.

)LJXUH $JULFXOWXUDOODQGXVHE\FURSW\SHDQGUHJLRQ

30 Central Northern North-eastern Southern 25

5 Percentage of total cultivated land 0 Rice Permanent crops Field crops, Pasture Other vegetables, flowers, ornamentals

Source: NSO, 2012.

7KHPDMRUƄHOGFURSVLQ7KDLODQGDUHVXJDUFDVVDYD the main permanent crops in the northerly regions. maize, and soybeans. Several other crops are also Sugar and cassava are the two most important grown, including sorghum, cotton, tobacco and sweet field crops, grown mainly in the central and north- potato. Permanent crops include, most importantly, eastern regions. Cassava is produced mainly for rubber, oil palm and fruit trees; coconut and eucalyptus export, but is a potentially important source of are also grown. ethanol for fuel production. Sugar is grown for food for the domestic and export markets, and is Over half of the country’s agricultural land is under increasingly important as an energy crop. Other rice cultivation. Rice is grown in all the provinces, crops include maize, vegetables, coffee and chilli EXWWKHKLJKYDOXHMDVPLQHULFHLVJURZQRQO\LQWKH peppers. north-east. Rubber, found mainly in the southern region, is the second most important product, in There are three broad types of farm holdings in terms of agricultural production value, land use and Thailand: number of farms. Efforts are under way to expand its • Large corporate farms owned by large private production in the north-east. The southern region ƄUPVZKLFKDUHHQJDJHGLQSURFHVVLQJWKHLURZQ dominates in oil palm production. Fruit trees are DJULFXOWXUDO FRPPRGLWLHV 7KHVH ƄUPV GRPLQDWH CHAPTER III : SMALLHOLDER FARMING IN THAILAND’S AGRICULTURAL INNOVATION SYSTEM 55

particularly in shrimps and livestock products for Major challenges for small-scale farming H[SRUW 7KHUH LV DOVR RQH YHU\ ODUJH ƄUP LQ WKH :KLOH LW LV GLIƄFXOW WR GUDZ JHQHUDO FRQFOXVLRQV DERXW rubber sector. the diverse agro-environmental areas and different • Individually-owned medium-sized farms, which are DJULFXOWXUDO FRPPRGLWLHV VRPH PDMRU FRPPRQ typically engaged in the cultivation of fruit trees, challenges for small-scale farming in Thailand are ƅRZHUVDQGRUQDPHQWDOVSODQWV evident. Most agricultural areas face both regular water shortages in the dry season and periodic droughts. Only • Small-scale farms, which grow the bulk of the }SHUFHQWRIWKHWRWDODUHDRIDJULFXOWXUDOODQGLVLUULJDWHG PDMRU FURSV LQFOXGLQJ ULFH VXJDU FDQH UXEEHU 3HUUHW HW DO EXW WKHUH DUH VLJQLƄFDQW UHJLRQDO palm oil and cassava, as well as other crops. variations. In the north-eastern region, for example, only DURXQG}SHUFHQWRIWKHDJULFXOWXUDODUHDLVLUULJDWHG Most agricultural production in Thailand is carried 6LULSRUQSLSXO 2QWKHRWKHUKDQGƅRRGVSUHVHQW out on small farms. According to data from a further threat to agricultural production in many areas. the National Statistical Office (NSO, 2012), the The period 2008–2010 experienced an annual average average farm holding decreased between 1983 RIVL[ƅRRGLQJRFFXUUHQFHV 162 and 2008 from 3.52 hectares (22 rai) to 2.37 There are also problems with soil quality in most areas. KHFWDUHV UDL 7KH PDMRULW\ RI VPDOOKROGHUV Shallow soil and sandy soil are especially problematic own their own land, and most small-scale farmers for agriculture in the northern and north-eastern also engage in other income-generating activities UHJLRQVDQGVRLOVDOLQLW\LVDOVRDVLJQLƄFDQWSUREOHP RXWVLGHWKHLUKROGLQJV,QRQO\}SHUFHQW in the north-east. Soil erosion is the most serious of farming households were engaged in full-time problem in terms of land area affected, with the farming (NSO, 2003). Farming households in the QRUWKHUQUHJLRQDFFRXQWLQJIRUDURXQG}SHUFHQWRI north-east relied the most on outside sources of WKHWRWDO}PLOOLRQKDDIIHFWHG$IXUWKHU}PLOOLRQKD income and had the lowest average level of debt. KDVLQRUJDQLFVRLORIZKLFKPRUHWKDQ}PLOOLRQKDDUH The central region had the highest proportion of in the north-eastern region. Efforts to rehabilitate soil in full-time farmers, but also the highest average level agricultural areas have had limited success in tackling of debt per household. VRLOSUREOHPVRQVXFKDODUJHVFDOH WDEOH}

7DEOH $UHDVRISUREOHPVRLODQGDYHUDJHDQQXDOUHKDELOLWDWHGDUHDVŶ

7RWDODUHDZLWKSUREOHPVRLOV oKD $QQXDOUHKDELOLWDWLRQ ŶDYHUDJH Erosion soil 17 424 83 Inorganic soil 15 792 226 Saline soil 3 472 6 Acid sulfate soil 848 8 Total Source: NSO, 2012.

7DEOH $YHUDJHUDWHRIFKHPLFDOIHUWLOL]HU The use of chemical fertilizers continues to rise, and DSSOLFDWLRQE\UHJLRQDQG WKHLULPSRUWVLQFUHDVHGE\DERXW}SHUFHQWRYHUWKH SHULRG Ÿ DFFRUGLQJ WR 02$& GDWD 2YHU Growth this period, the total amount of land on which chemical .JKD .JKD 3HUFHQW IHUWLOL]HUV ZHUH DSSOLHG JUHZ E\ } SHU FHQW DFURVV Central 356 381 7 the country, with the northern and southern regions Northern 269 294 10 accounting for most of this increase. At the same North-eastern 200 219 11 time, the intensity of chemical fertilizer application Southern 300 375 25 JUHZ E\ } SHU FHQW RYHUDOO WDEOH} 7KH FHQWUDO Total 11 and southern regions record the most intensive use of Source: NSO, 2012. chemical fertilizer per hectare. 56 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

&KHPLFDO IHUWLOL]HUV DFFRXQW IRU DURXQG } SHU FHQW in terms of poor water availability and soil quality, of the total tonnage of imported chemical inputs for and global climate change has introduced a high DJULFXOWXUH DURXQG } SHU FHQW RI WKH WRWDO YDOXH degree of unpredictability for farming operations. The with chemical pesticides accounting for the remainder use of imported chemical fertilizers and pesticides is (NSO, 2012). Of the different chemical pesticides JHQHUDOO\KLJKDQGWKH\DUHRIWHQDSSOLHGLQHIƄFLHQWO\ used, the increasing use of herbicides is of most There is a serious labour shortage and an ageing concern in terms of their environmental impact and farming population, and the levels of smallholding increased costs for farmers. Chemical herbicides are mechanization are considered low. Many of the barriers a labour-saving technology (reducing the need for to innovation for small-scale farmers relate to economies weeding by hand), and, given the prospective labour RIVFDOH7KHVHWRJHWKHUZLWKWKHGLIƄFXOWLHVLQKHUHQWLQ shortages in agriculture, their use is likely to increase information and technology diffusion to large numbers further. Organic agriculture still accounts for only a of farmers, present policy challenges that differ from low percentage of the total agricultural area, and it is those for medium and large-scale farming operations. LQFUHDVLQJRQO\YHU\VORZO\ HJIURPWR}SHU cent from 2005 to 2009 (FAOSTAT, 2013). C. THE POLICY &KHPLFDO LQSXWV DUH RIWHQ DSSOLHG LQHIƄFLHQWO\ ,Q WKH case of fertilizers, farmers most often purchase ready- ENVIRONMENT blended formulas, which may not be optimal for the soil 7KH 1DWLRQDO 67, 3ROLF\ DQG 3ODQ Ÿ conditions and crops of their particular farms. A more highlights a number of agricultural products as priorities HIƄFLHQW IHUWLOL]HU LV RQH WKDW LV EOHQGHG DQG DSSOLHG for future STI efforts. This policy framework requires DFFRUGLQJWRVSHFLƄFQHHGVXVLQJVHSDUDWHO\SDFNDJHG IXUWKHUGHYHORSPHQWWRWUDQVODWHSROLF\REMHFWLYHVLQWR N, P and K fertilizers. Technologies are available to carry workable programmes and plans. For this, it is useful out soil analysis at the farm level, and are already used to consider STI policy for agriculture, and especially WR VRPH H[WHQW +RZHYHU VPDOOVFDOH IDUPHUV KDYH for smallholder agriculture, in the context of the wider been reluctant to blend their own fertilizers; for small policy environment. areas of cultivation, the additional labour input, plus the )LJXUH .H\SROLF\DUHDVIRUDJULFXOWXUDO potential extra costs of unused N, P and/or K, does not innovation always bring them adequate returns. Fertilizers have also been underapplied, in an attempt to save costs, or overapplied, either because the recommended National Development Policy GRVDJHLVQRWRSWLPDOIRUWKHVSHFLƄFORFDOFRQGLWLRQV or in the belief that a larger amount of fertilizer will further increase yields. Chemical pesticides have also been overapplied for similar reasons. Some of these LQHIƄFLHQFLHVKDYHEHHQIDFLOLWDWHGE\WKHIDOOLQJFRVWV of chemical inputs (in real terms), but also by MOAC’s Agriculture practice of distributing free insecticides to farmers in the event of pest outbreaks. In the face of a labour shortage in agriculture, increased mechanization of farming will be a priority for the Environment Bio- Energy development of smallholder agriculture. Demand for ICT tech DJULFXOWXUDOPDFKLQHU\LVLQFUHDVLQJ2QHVXSSOLHUƄUP for example, reported that the company’s annual sales STI KDGULVHQE\DQDYHUDJHRI}SHUFHQWDQQXDOO\RYHUWKH SDVWƄYH\HDUV6RPHVPDOOVFDOHIDUPVDUHUHSRUWHGWR be fully mechanized, and harvesters are used (owned, RUUHQWHGRXW E\PRVWIDUPHUV+RZHYHUPHFKDQL]HG Education, training, R&D land preparation and planting is much less common. In summary, many or most small-scale farmers are working in poor environmental conditions, particularly Source: UNCTAD. CHAPTER III : SMALLHOLDER FARMING IN THAILAND’S AGRICULTURAL INNOVATION SYSTEM 57

)LJXUH} SUHVHQWV DQ RYHUDOO SHUVSHFWLYH RI WKH including sugar, rubber, cassava and rice. Annual key related policy areas for agricultural innovation,11 price-setting for sugar was introduced after global showing the most important relationships between sugar prices dropped sharply in the 1980s (Oxford the different areas. The National Development Policy Business Group, 2013). Government price support for provides the starting point for the development of FDVVDYDZDVLQWURGXFHGLQŸDQGFRQWLQXHG sectoral policies and action plans. The use of STI for WKURXJK Ÿ ,Q WKH *RYHUQPHQW agricultural development in Thailand will depend not introduced a subsidy for rice production through the only on agricultural policy and/or STI policy, but also on Rice Pledge scheme, which was continued in 2013. energy policy and environmental policy. Furthermore, Pricing systems and subsidies have implications for STI successful implementation of policies in these areas in agriculture, in that they tend to act as disincentives must be underpinned by capacity-building through for increasing productivity through investment in complementary policies in education, training and innovation. Furthermore, these schemes effectively 12 R&D. divert substantial amounts of public resources away from other agricultural development activities. 1DWLRQDOGHYHORSPHQWSROLF\ At the time of the STIP Review team’s interviews in October 2013 and June 2014, the only clear policy The current 11th National Economic and Social mechanism to promote fundamental change in the 'HYHORSPHQW 3ODQ Ÿ LQFOXGHV WKUHH NH\ agricultural production system was the plan for crop REMHFWLYHVIRUDJULFXOWXUH zoning. It aims not only to promote the cultivation • To empower the agricultural sector to become an of crops best suited to local agro-environmental HIƄFLHQW SURGXFWLRQ EDVH WKDW FDQ SURGXFH IRRG conditions, but also to address problems of oversupply and energy with value, quality and high standards, (rice) and undersupply (sugar). As the policy has not and remain environmentally sound; yet been implemented to any great extent, its impacts • 7R LPSURYH WKH TXDOLW\ RI OLIH MRE VHFXULW\ DQG FDQQRW EH DVVHVVHG +RZHYHU FURSVZLWFKLQJ income in the agricultural sector. inherently implies the discarding of some existing technological capabilities and a need for new learning. • To promote the participation of farmers and local communities to support food and energy security The agriculture sector lacks a clear overall long-term and be self-reliant. policy and plan for restructuring small-scale farming. The overarching principles of sustainable agriculture The Plan also provides numerous and wide-ranging DQG D qVXIƄFLHQF\ HFRQRP\r DV KLJKOLJKWHG LQ WKH JXLGHOLQHVIRUWKHDFKLHYHPHQWRILWVREMHFWLYHV7KH QDWLRQDODJULFXOWXUDOSROLF\DUHQRWVXIƄFLHQWWRJXLGH guidelines often imply the need for one or more the design and formulation of appropriate plans and ambitious and costly development programmes. policy instruments. Moreover, the set of guidelines 0RUHRYHU QHLWKHU WKH REMHFWLYHV QRU WKH JXLGHOLQHV IRUDJULFXOWXUDOGHYHORSPHQWLQWKHFXUUHQWƄYH\HDU for their achievement are prioritized. Therefore, while National Economic and Social Development Plan are WKH3ODQUHƅHFWVDFRPSUHKHQVLYHDZDUHQHVVRIWKH too wide-ranging and ambitious to be tackled across QHHGVRIWKHVHFWRUWKHFKRLFHRISULRULW\REMHFWLYHV the board. Policies for different areas of agriculture and policy measures for implementation is normally are often drafted at the level of MOAC departments.14 made at the ministerial level. This has the advantage that policies formulated by key implementing agencies may be better (or at $JULFXOWXUDOSROLF\ least, more realistically) designed, but the potential disadvantage that policies may favour the status quo Government support for farmers since 1961 has over substantive change, which is a common issue largely involved the provision of subsidized credit and with other areas explored in this Review. Moreover, direct transfers, rather than interventions in commodity without a clear long-term plan, there is the risk of markets (Warr, 2008). Support has included the lack of cohesion, or possibly even contradiction, provision of subsidized planting materials, fertilizers and between different areas of policy. It is unlikely that technical assistance.13+RZHYHUWKH*RYHUQPHQWKDV transformation in agriculture, particularly in respect also intervened in markets in response to large drops of small-scale farming, will succeed without a clear in world prices for key Thai agricultural commodities, articulation of the problems that exist, and a cohesive 58 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

long-term programme to bring about fundamental &KDQJH0DVWHU3ODQtXQGHUWKH2IƄFHRI change. Such a programme would be likely to Climate Change Coordination in the Ministry of Natural incorporate policies that provide incentives for Resources and Environment (MNRE). farmers to innovate (such as reducing market price In respect of the environmental sustainability of land support), create new markets for small producer and water resources, and biodiversity, there are outputs and increase farm sizes, as well as policies overlapping responsibilities. The National Biodiversity that build and deploy the innovative capacity needed 6WUDWHJ\DQG$FWLRQ3ODQVLQFOXGHWKHREMHFWLYHq7R to transform agricultural production. conserve agricultural ecosystems in order to minimize deterioration of agro-biodiversity”, and are under the (QHUJ\SROLF\ mandate of the MNRE. This Ministry’s mandate also FRYHUVFRQWDPLQDWHGODQG+RZHYHUUHVSRQVLELOLW\IRU Thailand’s 20-year development vision includes an managing and improving the quality of agricultural land REMHFWLYH WR H[SDQG HQHUJ\ FURSV 7KH 5HQHZDEOH comes under the mandate of the Land Development and Alternative Energy Policy Development Plan Department of the MOAC. Ÿ JLYHV HPSKDVLV WR WKH SURGXFWLRQ :DWHU PDQDJHPHQW LV D PDMRU LVVXH LQ DJULFXOWXUDO of ethanol from sugar cane and cassava, and the development. Scarcity of water is to a large extent production of biodiesel from palm oil. Such production responsible for the low productivity of many crops.15 has already been taking place in Thailand for some For example, in one area in the north-eastern region, years, and infrastructure and enabling factors are also the average maximum yield of sugar cane grown under in place to facilitate expansion of the domestic markets irrigation was estimated to be 125 tonnes/ha, but for these products. The key issues for STI therefore without irrigation it was 56 tonnes/ha.16 At the same UHODWH WR LQFUHDVLQJ HIƄFLHQF\ LQ PDQXIDFWXULQJ DQG WLPH VSRUDGLF ƅRRGLQJ KDV UHVXOWHG LQ PDMRU FURS increasing crop production and productivity to ensure a losses in recent years (Supnithadnaporn et al., 2011). consistent supply of raw materials in a sustainable way. The efforts of the MOAC’s Royal Irrigation Department One report has highlighted a division in the north-east to increase the area of agricultural production under between farmers who are engaged in the cultivation irrigation are progressing slowly. In many parts, further of energy crops for ethanol production, and other progress will depend on long-term initiatives for water farmers whose production is adversely affected by the capture, storage and management that are currently negative environmental impacts from this (MoI/UNDP/ under way under the Master Plan on Water Resource 81(3 ,WDOVRƄQGVWKDWHWKDQROSURGXFWLRQLQ Management (Strategic Committee for Water the region has resulted in increased pollution of rivers, 5HVRXUFH 0DQDJHPHQW 7KLV PDMRU ORQJ which has affected inland aquaculture activities. term Master Plan, which is supported by a detailed Furthermore, the general principle in Thailand is that policy and plan, considers a number of potential STI food security must take priority over the development solutions,17 embraces cooperation between ministries, of energy crops, as articulated in the current National and receives support at the Cabinet level. The Plan is Economic and Social Development Plan. On the other a good example of STI integration into policy planning. hand, based on information provided during interviews 2WKHU 67,UHODWHG SROLF\ DUHDV ZRXOG EHQHƄW IURP D with stakeholders, there is also a drive to expand the similar approach. area of agricultural land under energy crop cultivation, particularly in respect of sugar to meet the demand 67,SROLFLHV for ethanol. 7KH 1DWLRQDO 67, 3ROLF\ DQG 3ODQ Ÿ18 (QYLURQPHQWDOSROLF\ LGHQWLƄHV WKH SULQFLSDO VHFWRUV DQG DUHDV IRU SULRULW\ attention in respect of STI capacity-building in There are two main long-term broad national agriculture, including selected key crops and the environmental policies now in effect that are especially development of value added from these crops. relevant to agricultural development: the National +RZHYHULWGRHVQRWLQGLFDWHKRZWKHSROLF\ZLOOEH Policy and Prospective Plan for the Enhancement further developed in the area of agriculture, and how and Conservation of National Environmental Quality it dovetails with the STI aspects of other policies (e.g. 1997–2016 (AECEN, 2004), and the Thailand Climate agricultural, biotechnology or ICT policies). CHAPTER III : SMALLHOLDER FARMING IN THAILAND’S AGRICULTURAL INNOVATION SYSTEM 59

Biotechnology policy is so ambitious and wide-ranging, some obstacles to implementation are inevitable. At present, human The National Biotechnology Policy, approved by the resource development in ICTs is the main hindrance, Cabinet in 2004, is an important instrument for guiding in general and also in agriculture. Promoting and knowledge-intensive agricultural research in Thailand. supporting the use of the Internet and smart phones None of its six goals or their associated strategies by farmers and building farmers’ competencies in the DQGSULRULW\PHDVXUHVVSHFLƄFDOO\WDUJHWVDJULFXOWXUDO collection and management of local agricultural and 19 production or small-scale farming. It might be useful environmental information needs a sustained effort in the planning process for the next implementation over the long term. plan of the policy to review the existing and potential role of biotechnology in applications that are most Research policy needed by small-scale farmers. These applications are likely to include, for example, plant-breeding for National research policy is under the overall mandate LPSURYHG GURXJKW ƅRRG DQG VDOLQLW\ WROHUDQFH DQG RIWKH15&7+RZHYHUZLWKLQWKHEURDGSDUDPHWHUVVHW the development of bio-fertilizers and their production by it (NRC, 2011), the choice and design of research (including testing and quality control). Some R&D is activities is commonly determined according to already under way in these areas, but R&D efforts priorities set by ministries, research organizations and/ need to be coordinated and concentrated on key, or funding bodies. MOAC’s own budget funds most of well-articulated priorities. the R&D undertaken by its departments, though each One obvious policy gap is the lack of a national UHVHDUFKSURJUDPPHDQGSURMHFWKDVWREHDSSURYHG biosafety regime. A draft national biosafety policy for by the Bureau of the Budget, and funding is approved Thailand was produced and submitted to Parliament on an annual basis. MOAC also receives funding from a few years ago, but has not been passed into law. ARDA for the purpose of enhancing research capacity 7KH GHEDWH DURXQG JHQHWLFDOO\ PRGLƄHG RUJDQLVPV within the Ministry. It is not clear how the whole body (GMOs) at the international level in the late 1990s was RIDJULFXOWXUDO5 'ƄWVWRJHWKHURUKRZSROLF\PDNHUV very controversial and divisive, and Thailand, like other HQVXUH WKDW UHVHDUFK UHVXOWV EHQHƄW HQGXVHUV RI countries, took a cautious wait and see approach to WHFKQRORJ\LQFOXGLQJIDUPHUV,WDSSHDUVWKDWVSHFLƄF this area of biotechnology. Now, more than 15 years problems and the potential solutions that require R&D, later, more evidence is available about the impact of are not clearly-articulated and prioritized at a national GMOs,20 there is a wider range of experiences on how level. In the absence of a National Agricultural Research these can be handled, and science has progressed System, there is no single institutional mechanism to further. Moreover new areas of science (e.g. synthetic JXLGH SURMHFW IXQGLQJ WR PXOWLSOH SURMHFWV ZLWKLQ D 22 biology) have emerged, and it would now be cohesive programme of development. As highlighted appropriate to review these issues and revise the draft LQFKDSWHU} VHFWLRQ}& DZLGHUHYLHZRIUHVHDUFK biosafety policy before its resubmission to Parliament. policy (not only relating to agriculture) as well as systematic monitoring and impact evaluation of R&D ICT policy programmes are needed for rationalizing R&D efforts.

21 Thailand’s Smart Agriculture programme aims to 6WUHQJWKHQLQJSROLFLHVWRSURPRWH develop databases and knowledge management LQQRYDWLRQLQDJULFXOWXUH systems, including a consolidated national agricultural information system and a system to provide useful The country’s long-term vision for food and energy GDWD WR IDUPHUV LQ VSHFLƄF ORFDOLWLHV DQG IRU VSHFLƄF security, and environmentally friendly production agricultural products. There are also plans to set up depends crucially on the large number of small-scale online communities of farmers and others to exchange farmers engaged in the production of rice, sugar and knowledge and information. RWKHUPDMRUFURSV7KHUHIRUHDORQJWHUPSHUVSHFWLYH There is some policy cohesion in this area of STI and commitment to STI for small-scale agriculture is development for agriculture. For instance, MOAC needed in addition to policy responses for medium- is integrating ICT development into its policies and and large-scale farming and for the agro-industry departmental plans based on the ICT Framework and (where overcoming the fewer barriers to technology 0DVWHU3ODQ+RZHYHUZLWKDGHYHORSPHQWSROLF\WKDW DEVRUSWLRQPD\HQDEOHEHQHƄWVWREHUHFRXSHGPRUH 60 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

easily and in the shorter term). Policies targeted at technologies, although this occasionally happens, for smallholders will often differ from those targeted at example where farmers also breed new varieties of crops.24 large-scale farm undertakings due to their different +RZHYHUIDUPHUVDFFXPXODWHDJUHDWGHDORIWHFKQRORJLFDO characteristics, namely the barriers to innovation knowledge through years of practical experience, that is, related to economies of scale, the large number of “learning by doing”, and use this learning, together with small-scale farmers and the complexities of diffusing their stock of traditional knowledge,25 to select, adopt new information and knowledge to them. and often adapt new technologies from outside. Access to information (e.g. about new technologies, emerging The development of STI capabilities involves the opportunities in markets, new pest outbreaks) is also design and implementation of long-term plans that important for farmers to enable them to adapt or take up require a good understanding of new technological new technologies. developments, the systemic nature of innovation and the impact of policy implementation so as to make WKH QHFHVVDU\ DGMXVWPHQWV 67, SROLF\ DQDO\VWV FDQ )DUPHUVDQGIDUPHUVpRUJDQL]DWLRQV contribute to effective policy planning for STI in areas related to agriculture by Farmers in Thailand organize themselves into informal and formal groups and cooperative organizations, Carrying out, or coordinating, technology • supported by MOAC. One reason for forming a group assessment and/or foresight exercises; is to register for MOAC’s extension services. Some • Monitoring and evaluating the impacts of R&D groups may also form an enterprise to add value to activities; and their produce, for example through processing and packaging activities. MOAC also contracts with groups • Applying an innovation systems approach to the of farmers to undertake seed multiplication, and they analysis. can be extremely important channels for technology It will be important to analyse innovation systems diffusion in small-scale agriculture. from the perspective of small-scale farming in order 2YHU } PLOOLRQ IDUPHUV DUH PHPEHUV RI DJULFXOWXUDO to design the appropriate STI policies for the sector. cooperatives,26 another type of farmers’ organization, promoted and overseen for many decades by D. THE AGRICULTURAL MOAC. Cooperatives are essentially business units that provide access to credit27 and other services INNOVATION SYSTEM (e.g. supplying seeds from MOAC, and selecting and An agricultural innovation system is composed of ordering fertilizers and pesticides from commercial the actors, institutions, organizations and policies suppliers) for their members. Some cooperatives that together support innovation in agriculture, along own and manage rice mills, and engage in other with the necessary infrastructure and mechanisms income-generating activities. Cooperatives are more (UNCTAD, 2010a). The key stakeholder groups in such formally instituted than other types of farmer groups. D V\VWHP DUH IDUPHUV ƄUPV VXSSOLHUV GLVWULEXWRUV They have to meet strict criteria to be registered SURFHVVLQJ ƄUPV 5 ' RUJDQL]DWLRQV HGXFDWLRQDO with MOAC, and are audited by that Ministry. The institutions, government ministries and other public cooperative system was not designed to act as bodies, and, often, non-governmental organizations a channel for technology diffusion, though it is an (NGOs) and inter-governmental organizations (IGOs). important channel for disseminating information to The effectiveness of the innovation system depends on individual farmers. the innovative activities of these stakeholders, but also As the use of ICTs expands in Thailand, the role on the linkages within and between them that facilitate of agricultural cooperatives in the diffusion of new WKH GLIIXVLRQ RI qEHVWƄWr WHFKQRORJLHV WR HQGXVHUV knowledge and technology-related information is This section presents a broad analysis of Thailand’s likely to grow. They are well-placed institutionally agricultural innovation system from the perspective of to facilitate the collection and collation of local small-scale farmers as end-users of technology,23 but agricultural and agro-environmental data from farmers also as innovators themselves. and to feed it into relevant databanks, as well as to Small-scale farmers are rarely “forerunner innovators” facilitate the use of newly developed applications in the sense of creating novel, commercially applicable for farmers. The Department for Promotion of CHAPTER III : SMALLHOLDER FARMING IN THAILAND’S AGRICULTURAL INNOVATION SYSTEM 61

Cooperatives aims to build their capacity to carry IDUPPDFKLQHU\PD\EHVKDUHG+RZHYHUDWSUHVHQW out these data management activities, and a pilot there are few channels for interaction between farmers model is under development. The Department also in different areas.28 launched a strategy in 2013 to improve the business model of cooperatives, designed to, among others, 0DMRUVRXUFHVRIQHZNQRZOHGJH boost their capacity to facilitate market access for DQGLQIRUPDWLRQIRUVPDOOVFDOH their members. IDUPHUV Technology and innovation linkages between farmers at the local level (within tambons and districts) are Figure 3.4 presents a schematic view of a local strong. Farmers’ groups elect a representative to agricultural innovation system in Thailand, showing liaise with technology and information providers, and farmers’ direct links with various sources of technology that person diffuses new knowledge and information at the local and national levels. The technological to other group members. Farmers also exchange capacity of the different sources and their linkages are knowledge informally. Some resources, particularly assessed in this section.

)LJXUH )DUPHUVpOLQNDJHVZLWKLQWKHDJULFXOWXUDOLQQRYDWLRQV\VWHP

Direct “knowledge transfer” links with farmers at the local level* Links between different types of organizations at the local level Links between non-local and local level organizations, including farmers Links between different types of non-local (national) organizations Lines with dashes indicate that links are generally weak, or inconsistent * feedback links from farmers to sources of technology transfer also exist, but vary widely in strength and consistency/frequency Agricultural vocational LOCAL LINKAGES schools and colleges

Suppliers Farmers Royal and Projects and NGOs/IGOs distributors Farmers’ groups and cooperatives Firms outside the local area Processing Extension firms services MOAC (contract (HQ) farming)

Research stations and Universities district Universities (local) and research offices organizations outside the local area

Source: UNCTAD. Note: )RUWKHVDNHRIFODULW\WKHƄJXUHVLPSOLƄHVZKDWLVLQUHDOLW\DPRUHFRPSOH[SLFWXUH,QSDUWLFXODULWVKRXOGEHQRWHGWKDW the unidirectional arrows from sources of technology to farmers is not intended to indicate that farmers are merely passive recipients; in most cases, there is a two-way interaction between farmers and the other stakeholder groups. 62 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

The Ministry of Agriculture and Cooperatives between the Department of Agricultural Extension Services (DAES) and other departments at MOAC In Thailand, MOAC has historically been the most headquarters seem to be weakening. When DAES was important source of new knowledge for farmers. It has set up as a separate department, new technologies specialized departments (for rice, rubber, other crop developed for farmers by all other departments were DJULFXOWXUH VLOYLFXOWXUH ƄVKHULHV ODQG GHYHORSPHQW VXSSRVHGWREHFKDQQHOOHGWKURXJK'$(6+RZHYHU and irrigation) that undertake research, development some departments are now working directly with and diffusion (RD&D) activities. Crop-breeding for the IDUPHUV $ FRPPRQ YLHZ LV WKDW H[WHQVLRQ RIƄFHUV FRXQWU\pV PDMRU FURSV LV DOVR XQGHUWDNHQ PDLQO\ E\ JHQHUDOO\ GR QRW KDYH VXIƄFLHQW WHFKQLFDO H[SHUWLVH MOAC.29 to diffuse specialist knowledge from all the different The Department of Agriculture (DOA) carries out MOAC departments. At the same time, extension R&D and technology transfer activities for crops RIƄFHUV DUH FRQFHUQHG WKH\ KDYH OLWWOH WR RIIHU DV other than rice, offers testing and advisory services, WKH\ DUH QRW UHFHLYLQJ VXIƄFLHQW QHZ NQRZOHGJH is in charge of enforcing several regulations on IURP 5 ' DFWLYLWLHV DW WKH 0LQLVWU\pV FHQWUDO RIƄFHV safety and quality standards, administers Thailand’s In addition, in some cases links to feed information Plant Breeders’ Rights regime and is responsible and knowledge from farmers in local areas back to for the expansion of farm mechanization. The Land MOAC headquarters are weak. The use of ICTS by Development Department (LDD) is responsible for H[WHQVLRQRIƄFHUVWRFRQQHFWWRKHDGTXDUWHUVDQGWR improving and maintaining the quality of agricultural H[WHQVLRQRIƄFHUVLQRWKHUDUHDVPD\KHOSDPHOLRUDWH land. MOAC’s Royal Irrigation Department is an this situation. E-learning has already been instituted engineering department tasked with expanding the for sub-district agents, and DAES has applications area of agricultural land under irrigation. Some MOAC on mobiles. MOAC is actively developing and departments have local representation in some expanding its use of ICTs for exchange of information DJULFXOWXUDO DUHDV LQ WKH IRUP RI ORFDO RIƄFHV DQGRU and knowledge. The development of applications for research stations and seed multiplication facilities. The farmers’ direct use is constrained at this time by the Department of Rice, for example, has 27 rice research relatively low level of ICT use by farmers.32 FHQWUHVDQGULFHVHHGFHQWUHV/''DOVRKDVƄHOG MOAC has a policy on smart farms, and collaborates RIƄFHV DFURVV WKH IRXU DJULFXOWXUDO UHJLRQV DQG KDV both at the national and local levels with the Smart built up a large network of around 55,000 volunteer Farm programme of the National Electronics and farmers (soil doctors) to carry out soil testing at the &RPSXWHU 7HFKQRORJ\ &HQWHU 1(&7(& +RZHYHU farm level. In addition, MOAC has a central department as noted by an existing collaborator, where ministerial of agricultural extension and a countrywide network departments are involved, funding commitment for RIH[WHQVLRQRIƄFHV$OOtambons in agricultural areas PXOWL\HDU SURMHFWV LV D SUREOHP DV WKH PLQLVWULHVp KDYHDQH[WHQVLRQRIƄFHDQGLQVRPHWKHRIƄFHLVWKH SURMHFW IXQGLQJ LV DSSURYHG RQ DQ DQQXDO EDVLV E\ farmers’ sole link with MOAC. the Bureau of the Budget. When several ministries, Agricultural extension services, often considered such as MOST, Ministry of ICT (MICT) and MOAC, outdated, are still important channels of knowledge FROODERUDWHRQDŸ\HDUSURJUDPPHWKH\KDYHWR diffusion to farmers in Thailand. At the local level, DOLJQWKHLUUHVHDUFKDFWLYLWLHVWRƄWEXGJHWVFKHGXOHV H[WHQVLRQRIƄFHUVW\SLFDOO\PDLQWDLQLQIRUPDOOLQNDJHV MOAC’s activities are largely funded through the ZLWKUHOHYDQWƄUPVXQLYHUVLW\GHSDUWPHQWVDJULFXOWXUDO Ministry’s regular budget. In addition, ARDA, which FROOHJHVDQGZKHUHWKHVHDUHQHDUE\WKHORFDORIƄFHV is administratively part of MOAC but operates as an RI RWKHU 02$& GHSDUWPHQWV 7KH H[WHQVLRQ RIƄFHUV DXWRQRPRXV IXQGLQJ DJHQF\ DOORFDWHV } SHU FHQW undertake testing and carry out demonstrations of its annual budget to MOAC for the purpose of for farmers, and they also organize training courses LQFUHDVLQJWKH0LQLVWU\pVUHVHDUFKFDSDFLW\ WDEOH} RQ VSHFLƄF WRSLFV VXFK DV FXVWRPL]LQJ IHUWLOL]HUV Some of MOAC’s RD&D activities also receive at the tambon level, in collaboration with staff from WHFKQLFDO VXSSRUW DQG RWKHU QRQƄQDQFLDO UHVRXUFHV ORFDO XQLYHUVLWLHV DQG DJULFXOWXUDO FROOHJHV +RZHYHU from international organizations. Overall, MOAC’s farmers do not seem to be using the extension resources are extremely stretched, given its remit. services as much as before,30 partly because they MOAC also has problems in recruiting new staff with obtain information and knowledge through various DSSURSULDWH TXDOLƄFDWLRQV RZLQJ WR DQ LQDGHTXDWH other channels (e.g. mass media31). Furthermore, links VXSSO\RIJUDGXDWHVLQDJULFXOWXUDOVXEMHFWV CHAPTER III : SMALLHOLDER FARMING IN THAILAND’S AGRICULTURAL INNOVATION SYSTEM 63

Public sector research institutions GISTDA is using remote sensing (particularly satellites) and geographic information systems (GIS) to produce Outside MOAC, a number of public sector research data and high-resolution images that can be used organizations are engaged in agricultural or agriculture- to monitor the condition of agricultural land (at the related R&D activities, including NSTDA (particularly VXUIDFH LGHQWLI\ZKDWLVJURZQLQVSHFLƄFDUHDVDQG %,27(&DQG1(&7(& 7,675+$,,DQG*,67'$ make forecasts about harvesting schedules. It also The agricultural R&D of NSTDA and its institutes carries out R&D to develop user applications for the covers the whole range of the R&D continuum, from data gathered, targeting use by government agencies basic/strategic research (e.g. in genomics) to the (national and local) rather than small-scale farmers; development and commercialization of products. but there is potential for developing products for large Numerous activities relate directly to farm-level groups of farmers, such as farmers’ cooperatives. LQQRYDWLRQ LQFOXGLQJ 5 ' RQ ƅRRG GURXJKW DQG GISTDA has also developed a demonstration system saline-resistant rice varieties, R&D to breed higher for an Agricultural geographic information portal to yielding varieties of energy crops such as oil palm and allow different types of data (e.g. on soil, water and MDWURSKD5 'RQVHHGLPSURYHPHQWWHFKQRORJ\DQG land titles) to be shared amongst different public 1(&7(&pV6PDUW)DUPSURMHFW agencies. It does not collaborate on the Smart Farm SURMHFW35 but closer links are likely to be fostered in the 7KH H[WHQW RI OLQNDJHV EHWZHHQ SURMHFWV DQG VPDOO near future.36,WDOVRKDVLQIRUPDOOLQNVZLWK+$,, scale farmers depends primarily on the type of R&D undertaken. NSTDA’s Food and Agriculture Cluster +$,,KDVLQWHJUDWHGGDWDVHWVRQZDWHUIURPƄYHDJHQFLHV focuses on food safety and standards, which has into a data warehouse, and developed the data to be less direct relevance for small-scale farmers.33 Much XVHG LQ D ƅRRG ZDUQLQJ V\VWHP 'DWD PDQDJHPHQW of BIOTEC’s R&D that is directly relevant to farmers activities continue, but the institute is now also is pre-development research. Some researchers work developing community water management systems. ZLWKIDUPHUVRQƄHOGWULDOVEXWRWKHUW\SHVRIOLQNDJHV 7KHVHZDWHUSURMHFWVKDYHKDGGLUHFWLPSDFWVRQORFDO such as farmers’ inputs into problem formulation small-scale farmers, allowing more effective planning of HDUO\LQWKHUHVHDUFKGHVLJQDUHUDUH3URMHFWVDUHQRW IDUPDFWLYLWLHVDQGHQDEOLQJFURSGLYHUVLƄFDWLRQ$URXQG routinely evaluated or monitored for their impacts on 200 villages are part of the programme, and more than farmers. 50 have developed capabilities to expand their own water distribution networks. 1(&7(&pV 6PDUW )DUP SURMHFW LV D ODUJHVFDOH long-term initiative that involves hundreds of in- 7KHUHLVDFHUWDLQGHJUHHRIRYHUODSLQWKHREMHFWLYHV house researchers who collaborate extensively with and areas of activity of TISTR and NSTDA, both of other agencies (including MOAC’s departments) which aim to commercialize the outcomes from R&D in the areas of renewable energy, food and bio- DFURVVWKHFRXQWU\7KHSURMHFWpVUDWHRISURJUHVVLV constrained by the extent and rate of ICT infrastructure products. TISTR carries out research on bio-fertilizers expansion, and the take-up of ICT technologies by and bio-pesticides, but no products have been farmers, as well as farmers’ varying abilities to use commercialized so far. TISTR is based on the outskirts and manage the data effectively.34 NECTEC has of Bangkok and has research stations in the north- been working with farmers’ associations at three eastern region. learning sites to build capacity at the local level for All the key research organizations are located around data collection and management. Building trust and Bangkok, far from most of the small-scale farming eliciting local tacit knowledge to incorporate into the areas (with the exception of TISTR research stations). data has required several years. This suggests that Some researchers work directly with local communities UROOLQJRXWWKH6PDUW)DUPSURMHFWHYHQRQFHWKH and farmers’ groups, but it may take several years to ICT infrastructure is in place, is likely to take some build an effective understanding between researchers WLPHDQGUHTXLUHVLJQLƄFDQWUHVRXUFHV3ROLF\VKRXOG and farmers. Some university researchers have links ensure that current or future institutional structures with local university researchers, either informally (e.g. at the district and tambon OHYHOV DUH VXIƄFLHQW WR with former students, classmates or colleagues) or as facilitate this rolling out, that appropriate resources SDUWRIIRUPDOUHVHDUFKSURMHFWVDQGVRPHPDLQWDLQ are allocated, and that targets are set and reviewed OLQNVZLWKORFDO02$&RIƄFHVDQGUHVHDUFKHUVEXWWKH periodically. effectiveness of these linkages is unclear. 64 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

University R&D • Distributors of agricultural commodities to domestic and international markets. Thailand has an important specialized agricultural university (Kasetsart University), whose main campus Seeds, other than those supplied by MOAC, and is located on the outskirts of Bangkok. In addition, also chemical inputs are mostly imported. These are 38 each agricultural region has at least one national turnkey technologies, QRW GHVLJQHG VSHFLƄFDOO\ IRU research university, where agricultural R&D with a Thai farming. Knowledge about the use of seeds and PRUH UHJLRQDOVSHFLƄF IRFXV LV XQGHUWDNHQ 7KH chemical inputs in Thai agro-environmental conditions following are some general observations: 37 Ÿ DQG QRW RQO\ DFFHVV WR WKHP Ÿ LV LPSRUWDQW IRU innovation at the farm level. Extension services are • The extent and nature of linkages with smallholder important in this respect, together with subsequent farmers depends on the nature of the R&D, and farmer experience and experimentation.39 perhaps also on the approach to R&D of individual research leaders (who may have few incentives to $JULFXOWXUDO PDFKLQHU\ ƄUPV LQFOXGH GLVWULEXWRUV RI work closely with farmers). LPSRUWHG HTXLSPHQW PDQXIDFWXUHUV DQG ƄUPV WKDW are both distributors and manufacturers. Large • R&D activities are carried out as relatively short- equipment (e.g. combine harvesters) is imported. WHUP GLVFUHWH SURMHFWV ZKHUH WKH H[SHFWHG Some agricultural experts have noted that much of the RXWFRPHVDUHRIWHQDUWLFOHVIRUVFKRODUO\MRXUQDOV LPSRUWHGIDUPPDFKLQHU\QRZLQXVHLVRYHUVSHFLƄHG and/or (increasingly) applications for IPRs. These IRUVPDOOVFDOHDJULFXOWXUHDQGZKLOHORFDOƄUPVFDQ two outcomes are the most important key develop more basic/appropriate technologies, these performance indicators for academic research and ƄUPVIDFHGLIƄFXOWLHVHQWHULQJWKHPDUNHW

IRUUHVHDUFKHUVpFDUHHUVEXWGRQRWEHQHƄWIDUPHUV 40 or agricultural innovation directly. 3URFHVVLQJ ƄUPV LQFOXGH ODUJH ƄUPV DQG 60(V :KHUHODUJHSURFHVVLQJƄUPVFRQWUDFWVPDOOVFDOH • 3URMHFW GHVLJQ LV PRVW RIWHQ GHWHUPLQHG E\ farmers to cultivate agricultural commodities, researchers, and is rarely demand-driven, in WKH ƄUPV DFW DV LPSRUWDQW VRXUFHV RI SURGXFWLRQ the sense of potential end-users of the results technology. Where this is not the case, the requesting or commissioning the research. UHODWLRQVKLS EHWZHHQ ƄUPV DQG IDUPHUV LV RIWHQ Moreover, the research is not necessarily part of a limited, but may involve the diffusion of information wider programme of R&D that is intended to lead and new knowledge about quality standards. The to the diffusion of innovations. FRQWUDFWLQJƄUPVWKDWSDUWLFLSDWHGLQWKLV5HYLHZDUH • 3URMHFWVPD\EHFDUULHGRXWZLWKIXQGLQJDOORFDWHG engaged in sugar production and processing. They DWWKHXQLYHUVLW\OHYHORUZLWKSURMHFWJUDQWVIURP have their own R&D departments, and company funding agencies such as ARDA, NSTDA and H[WHQVLRQ RIƄFHUV ZRUN FORVHO\ ZLWK WKH IDUPHUV TRF, but these organizations do not monitor the to transfer new knowledge and information. Links are also maintained with their local universities and SURMHFWVpLPSDFWVDIWHUFRPSOHWLRQ with Kasetsart University, as well as with MOAC’s $V GLVFXVVHG LQ FKDSWHU} WKHVH LVVXHV DUH QRW local extension services and research stations. VSHFLƄFWRDJULFXOWXUDO5 ' 7KHƄUPV41 also supply fertilizers and pesticides to their contracted farmers, and act as guarantors for 3ULYDWHVHFWRUƂUPV low-interest credit from the Bank for Agriculture and Agricultural Cooperatives so that farmers can Various kinds of technology and information are acquire farm machinery or make farm improvements provided to small-scale farmers by the following types (e.g. pond installation). RIƄUPV Many farmers sell raw products to agents at the farm • Suppliers and distributors of agricultural technology gate. For others, their cooperative acts as an agent products (e.g. seeds, fertilizers, pesticides and (and, sometimes, as a processor (e.g. rice milling)). agricultural machinery); Where farmers’ groups undertake some processing at • 3URFHVVLQJ ƄUPV VRPH RI ZKLFK DUH DOVR the local level and sell value-added products through engaged in cultivation, either on corporate farms distributors or directly to wholesalers and retailers, this or through contracting arrangements with small- is likely to lead to an exchange of information that is scale farmers; and useful to support farmer innovation. CHAPTER III : SMALLHOLDER FARMING IN THAILAND’S AGRICULTURAL INNOVATION SYSTEM 65

)DUPHUV DQG IDUPHUVp JURXSVp LQWHUDFWLRQV ZLWK ƄUPV 0DQ\ SURMHFWV LPSOHPHQWHG E\ 1*2V DQG ,*2V even if limited to the purchase of commercially available DUH UHSRUWHG WR KDYH D VLJQLƄFDQW LPSDFW LQ EXLOGLQJ seeds, or equipment and/or the sale of farmers’ technological capacity at the farm level. Some produce, are important. For example, through these SURMHFWV KDYH LQWURGXFHG QHZ W\SHV RI FURSV WR local linkages, suppliers of agricultural technologies farmers, engaged farmers in research and/or helped receive information about farmers’ needs and feedback local communities develop new value-added products on the performance of their technology, which are IURPDJULFXOWXUH8VXDOO\WKHSURMHFWVDLPWRSURPRWH useful for future corporate R&D. For instance, the R&D VXVWDLQDEOH OLYHOLKRRGV LQ VSHFLƄF FRPPXQLWLHV $QG GHSDUWPHQW RI D ODUJH DJULFXOWXUDO HQJLQHHULQJ ƄUP while these could provide more widely applicable interviewed for this Review has a special interdisciplinary OHVVRQVIRUIXWXUHGHYHORSPHQWSURMHFWVPDQ\KDYHQR research team to understand the production process further plans to extend the impact outside the original at the level of farm production. This unit has links with communities involved. A more detailed assessment MOAC departments, including the extension services of the existing and potential contributions of these department, agricultural vocational colleges, and SURMHFWV WR ORFDO DQG QDWLRQDO DJULFXOWXUDO LQQRYDWLRQ JURZHUƄUPVDQGJURZHUVpDVVRFLDWLRQV systems could provide recommendations on how their learning and impact may be multiplied. 2YHUDOOSULYDWHƄUPVKDYHHIIHFWLYHWHFKQRORJ\WUDQVIHU linkages with farmers at the local level, and links with Educational institutions national and/or international sources of technology. /DUJHSULYDWHƄUPVVRPHWLPHVFDUU\RXW5 'DFWLYLWLHV A system of agricultural vocational schools and in the agricultural regions in which they operate, and colleges has been established for many decades. usually maintain informal links with MOAC extension +RZHYHUWKHVHLQVWLWXWLRQVDUHQRZƄQGLQJLWGLIƄFXOW RIƄFHV DQG UHVHDUFK VWDWLRQV DQG ZLWK XQLYHUVLW\ to recruit students. Potential students, or their parents, researchers. No evidence of formal research links are not attracted to careers in agriculture. There are EHWZHHQ SULYDWH ƄUPV DQG SXEOLF VHFWRU UHVHDUFK also obstacles to progression to university education institutions was found at the local level. for graduates of vocational schools.42 Besides, in WKHVHPRUHVFLHQWLƄFDOO\DQGWHFKQRORJLFDOO\FRPSOH[ $W WKH QDWLRQDO OHYHO ODUJHVFDOH SURFHVVLQJ ƄUPV WLPHVDJULFXOWXUDOH[WHQVLRQRIƄFHUVDUHH[SHFWHGWR largely rely on their own R&D departments, although be educated to at least degree level. collaboration with public sector researchers is becoming more common, particularly in respect of Agricultural schools and colleges are still linked with food safety and quality, which has less direct relevance small-scale farming, as some students become for farmers. farmers themselves, and agricultural colleges carry out, or participate in, demonstration activities for Local development projects: Royal projects, NGOs IDUPHUV LQ WKHLU ORFDO DUHDV +RZHYHU LW LV XQFOHDU and IGOs how well linked the schools are to new sources of knowledge, especially in respect of teaching staff. A wide range of development activities take place Other teaching approaches and focuses also require at the level of local communities, instigated and consideration. For example, the younger generation coordinated by various local, national and international PD\ƄQGWUDLQLQJLQHQWUHSUHQHXULDOIDUPLQJ LHWUDLQLQJ actors. in entrepreneurial, in addition to agricultural, skills) 5R\DO 3URMHFWV DUH FRPPXQLW\EDVHG GHYHORSPHQW more relevant and attractive. SURMHFWVXQGHUWDNHQXQGHUWKHSDWURQDJHRI+LV0DMHVW\ University departments specializing in agricultural .LQJ %KXPLERO $GXO\DGHM 7KHVH SURMHFWV IRFXV RQ VXEMHFWVDUHDOVRƄQGLQJLWLQFUHDVLQJO\GLIƄFXOWWRUHFUXLW environmentally sound technologies for small-scale VWXGHQWVDQGOHFWXUHUVŸDSDUWLFXODUO\DFXWHSUREOHP agriculture and on the improvement of livelihoods, and DVPDQ\RIWKHODWWHUZLOOUHWLUHZLWKLQDIHZ\HDUV+LJK KDYH EHQHƄWHG DQG RIWHQ WUDQVIRUPHG PDQ\ ORFDO quality agricultural education is provided at Kasetsart communities. Their outcomes are well documented University and at most of the other national research and the lessons learned have been taken up by universities, as well as at more teaching-focused others. For example, MOAC has adopted the New XQLYHUVLWLHV DFURVV WKH UHJLRQV +RZHYHU WKRVH Theory on Managing Agricultural Land and the use of interviewed by the STIP Review team emphasized vetiver grass to prevent soil erosion. the need for upgrading the skills of researchers on 66 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

modern techniques and to encourage multidisciplinary DJULFXOWXUDO 5 ' WR EH XVHG PRUH HIƄFLHQWO\ FOHDUHU approaches (i.e. developing farmers’ skills beyond only RYHUDOOJXLGDQFHRQSULRULW\QHHGVDQGVSHFLƄFUHVHDUFK agricultural skills). There are particular concerns that questions is needed, based on well-articulated long- too few agricultural researchers are being produced to WHUP REMHFWLYHV IRU DJULFXOWXUDO GHYHORSPHQW )XUWKHU meet the country’s future needs. stricter proposal criteria and evaluation and monitoring mechanisms should be designed to ensure that R&D 6XPPDU\RIOLQNDJHVDQGNQRZOHGJHƃRZVLQ activities are more demand-oriented and result in real agricultural innovation EHQHƄWVIRUVPDOOKROGHUV

Within local areas of agricultural production, there Second, activities to support and promote innovation is a relatively effective informal innovation system, in agriculture should be better linked to long-term ZLWK VLJQLƄFDQW LQIRUPDWLRQ ƅRZV DQG NQRZOHGJH planning, and should build an effective enabling transfer between farmers, farmer groups, MOAC environment for STI activities at the farm level. This local representatives and research stations, and may include institutional innovations at the local ƄUPV+RZHYHUGLUHFWOLQNVEHWZHHQIDUPHUVIDUPHUVp level to address the problems related to small farm organizations and university researchers seem to be sizes. One example of this type of long-term planning weaker. for structural change in agriculture is the case of Japan’s 1999 New Basic Law on Agriculture, which At the national level, many agricultural institutions and is implemented by means of a Basic Plan for Food, activities are concentrated around Bangkok, where Agriculture and Rural Areas (OECD, 2009).42 organizations collaborate formally, if at all. Despite the physical proximity between MOAC’s central research Finally, there is a concentration of STI resources in and departments and Kasetsart University, linkages between around the capital, and a lack of effective channels them seem to be weak. Some public sector researchers IRU WKH GLIIXVLRQ RI EHQHƄWV IURP 67, UHVRXUFHV WR around Bangkok link directly with farmers or local small-scale farmers in the regions, and, in the reverse UHVHDUFKHUVEHFDXVHWKLVLVUHTXLUHGIRUSURMHFWIXQGLQJ direction, for feeding planners and researchers with RUWKH\KDYHSHUVRQDOFRQWDFWV+RZHYHUPDQ\DFWLYLWLHV information on farmers’ needs, technological learning seem to bypass local researchers and extension services. and experiences. At the local level, the system of As in other sectors, there is limited formal collaboration linkages works relatively well. between industry and research institutions.

.H\LVVXHVIRUSROLF\ E. RECOMMENDATIONS Based on these three key issues, this review makes a 7KUHHPDLQUHODWHGƄQGLQJVIURPWKLVVWXG\DULVHIRU number of recommendations. Several other important policy in respect of agricultural innovation. issues require detailed investigation before other appropriate policy recommendations can be made. 7KHƄUVWLVWKDWLQWKHDEVHQFHRIDIRUPDOO\FRQVWLWXWHG national agricultural research system, there is no central policy or institutional mechanism to direct, support 3ROLF\UHFRPPHQGDWLRQV and ensure the effectiveness and cohesion of R&D (or, RD&D) activities in Thailand. Within a broad set Articulate an “innovation roadmap” for transformation of parameters laid out in the National Economic and of the agriculture sector Social Development Plan and the areas of application prioritized by the National Research Council, it seems that The “innovation roadmap” should address the research departments within MOAC and other relevant IRXU PDMRU ORQJWHUP DJULFXOWXUDO FKDOOHQJHV ODQG ministries, R&D institutions and university researchers fragmentation, inadequate water supply and are generally acting independently. Moreover, there are management, poor and deteriorating soil quality and few controls in place to evaluate or monitor the impacts lack of human resources. STI, including institutional of R&D results on end-users, and particularly on small- innovation, are crucial to tackling these challenges. scale farmers. As a result, R&D efforts cover many The current medium- to long-term vision needs to be disparate areas, with limited opportunities to build more clearly articulated in order to guide innovation synergies and strategically address complex problems SROLF\ SODQQLQJ GLUHFW 67, UHVRXUFHV PRUH HIƄFLHQWO\ DQG GHYHORSPHQW REMHFWLYHV )RU SXEOLF IXQGLQJ IRU and stimulate new interest in the sector. CHAPTER III : SMALLHOLDER FARMING IN THAILAND’S AGRICULTURAL INNOVATION SYSTEM 67

The roadmap should be supported at the highest 3ROLF\UHVHDUFKQHHGV level of government, and pay special attention to the needs of small-scale farmers. To inform the design of STI programmes and policies, further research is required on the following. A long-term soil improvement strategy Raising awareness and engagement in STI at the The future viability of the agricultural sector, however provincial, district and tambon levels. UHVWUXFWXUHG LV OLNHO\ WR GHSHQG WR D VLJQLƄFDQW extent on improved environmental conditions, The STIP Review team was unable to carry out a particularly water and soil. Despite the efforts of wide survey of STI awareness and policy activities at MOAC’s Land Development Department (LDD) WKHSURYLQFLDOGLVWULFWRUVXEGLVWULFWOHYHOV+RZHYHU to rehabilitate problem soil, soil quality remains a stakeholders noted that the authorities at these PDMRUFRQVWUDLQWRQSURGXFWLYLW\DQGPRUHVXSSRUW levels usually have a weak understanding of STI, in LVQHHGHGIRUWKHDFKLHYHPHQWRI/''pVREMHFWLYHV general, and of the potential role of STI in agricultural A cross-sectoral long-term programme for water development, in particular. As a result, the public management already exists, and a similar approach resources allocated to local agricultural needs are should be taken to develop and implement a long- likely to be inadequate. It is therefore recommended term strategy for soil improvement. A combination that the NSTIPO undertake further research on this of a wide range of technologies – both low-tech topic, perhaps from a more general STI perspective (e.g. production and application of green manure, than simply STI in agriculture. cultivation of vetiver grass) and high-tech (e.g. GPS and nanosensors for soil analysis) – may be Local focal points for major national STI-related appropriate, and research and academic institutions programmes could support the LDD in carrying out technology MOAC has an established structure of local focal assessments. At the same time, the problem of points for its activities, including in extension services, the increasing use of chemical inputs, particularly ORFDO RIƄFHV RI GLIIHUHQW 02$& GHSDUWPHQWV fertilizers, should be addressed, either as part research stations and agricultural cooperatives. of planning for soil improvement, or as part of a Other programmes related to agriculture (e.g. water separate policy planning activity. management, ICT) also engage with stakeholders at the local level. It was beyond the scope of this A national biosafety regime study to determine the nature of these relationships – who is involved, and whether the links are formal The lack of appropriate biosafety regulations at the or informal – or their role in ensuring the success of national level constrains the useful development and the programmes. NSTIPO should collaborate with deployment of biotechnology in key areas such as NECTEC, and the Ministries of ICT, and Natural health and agriculture, and in some areas it may act Resources and the Environment, as well as other as a disincentive to inward investment. At present, appropriate programme coordinators, to identify, R&D on GMOs is allowed, but their release is collate, analyse and disseminate examples of best prohibited. A forum on biosafety has already been practice in establishing local links to improve the proposed, and this should be followed through as a participation of farmers, and enhance knowledge and ƄUVWVWHSLQWKHSRWHQWLDOUHYLVLRQDQGUHVXEPLVVLRQ LQIRUPDWLRQ ƅRZV EHWZHHQ SURGXFHUV DQG XVHUV RI of a new set of biosafety guidelines for Parliament’s various technologies. consideration. Wide stakeholder participation will be critical to the success of a new biosafety regime, but Agricultural extension the different levels of understanding of the science between different stakeholder groups may present It might be an appropriate time for MOAC to review GLIƄFXOWLHV7KHUHIRUHWKLVIRUXPVKRXOGEHFRQYHQHG its provision of agricultural extension, which is seen as at least initially, as a series of meetings and/or an outdated model of technology transfer, especially seminars, to allow different stakeholder groups to in the light of new opportunities afforded by the use engage and familiarize themselves with this topic at of ICTs. It is therefore recommended that MOAC set an appropriate level. up an internal dialogue between relevant departments 68 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

WR LGHQWLI\ WKH PDMRU EDUULHUV WR HIIHFWLYH WHFKQRORJ\ • $ UHODWHG VXUYH\ RI 5 ' SURMHFW OHDGHUV WR diffusion and consider alternative solutions. The views HVWDEOLVKWKHRULJLQDOLPSHWXVIRUHDFKSURMHFWLH of different local communities regarding the utility and ZKR GHFLGHG WKDW WKH VSHFLƄHG 5 ' VKRXOG EH impact of extension services should also be collected undertaken, and on what basis; and to inform that dialogue. • A survey of university-held patents and other types of IPR, to determine to what extent they have Evaluation and monitoring of agricultural R&D facilitated innovation. undertaken outside MOAC Results and analyses from these studies might usefully $ VLJQLƄFDQW DPRXQW RI SXEOLFO\ IXQGHG DJULFXOWXUDO be collated and distributed for further discussion R&D is undertaken in other public sector research among government funding bodies. institutions and universities. Demand-driven R&D has The above recommendations propose a number of had some success at the downstream end of the areas in which STI efforts could further contribute to agricultural supply chain (e.g. research collaboration increasing productivity in small-scale agriculture. The ZLWK ƄUPV HQJDJHG LQ IRRG SURGXFWLRQ EXW DW WKH upstream end, the “science push” linear model of contribution of STI will largely depend on addressing a innovation persists. QXPEHURIVWUDWHJLFDUHDVDOVRLGHQWLƄHGLQWKHJHQHUDO DVVHVVPHQWRIWKHQDWLRQDOLQQRYDWLRQV\VWHP FKDSWHU} Moreover, evaluation of R&D is still most commonly including: (i) realizing the need for fundamental change EDVHG RQ WKH QXPEHU RI MRXUQDO DUWLFOHV SXEOLVKHG in the agriculture sector; (ii) mobilizing national leaders and IPRs. The utility of such R&D activities in terms around common goals (which requires a clear, long-term of supporting agricultural development, and farmers DJULFXOWXUDOSROLF\WRDGGUHVVIRXUNH\FKDOOHQJHV LLL MRLQWO\ in particular, is likely to be limited. The promotion of UHDOL]LQJHFRQRPLFVRFLDODQGHQYLURQPHQWDOREMHFWLYHV R&D activities that support agricultural development, (iv) strengthening governance and management of STI and in particular small-scale farmers, should be a in agriculture (including the adoption by consensus priority in the further development of STI policy. It is of a national biosafety regime); (v) improving resource therefore recommended that the following studies be management through the independent monitoring and FDUULHG RXW HLWKHU E\ WKH 67, 3ROLF\ 2IƄFH RU E\ DQ evaluation of agricultural R&D, training and extension independent organization, with the collaboration of programmes, particularly their impacts on farmers; ARDA and other funding bodies: and (vi) further linking agricultural innovation actors – • $VXUYH\RISDVWSURMHFWSURSRVDOVDQGƄQDOUHSRUWV SDUWLFXODUO\ FHQWUDO RIƄFHV DQG ORFDO SOD\HUV DV ZHOO RQ SXEOLFO\ IXQGHG DJULFXOWXUDO 5 ' SURMHFWV WR as MOAC central research departments and other LGHQWLI\ WKH QDWXUH RI WKHLU ƄQDO RXWSXWV DQG WKHLU public research organizations, including through the impacts; strengthening of extension services and ICT use. CHAPTER III : SMALLHOLDER FARMING IN THAILAND’S AGRICULTURAL INNOVATION SYSTEM 69

NOTES

1 %\RYHU}SHUFHQWRIWKHODERXUIRUFHZDVHPSOR\HGLQDJULFXOWXUH

2 2YHU WKH SHULRG Ÿ DJULFXOWXUHpV RXWSXW VKDUH GHFOLQHG DW DQ DYHUDJH DQQXDO UDWH RI SHU FHQW FRPSDUHGZLWKDQDYHUDJHDQQXDOGHFOLQHRI}SHUFHQWLQLWVHPSOR\PHQWVKDUH %ULRQHVDQG)HOLSH

3 Bosworth (2005) attributes Thailand’s low labour productivity in agriculture to underemployment, as the sector has DQXQGHUHPSOR\HGUHVHUYHRIVHDVRQDODQGXQSDLGIDPLO\ODERXUDQGWKHPDMRULW\RIIDUPHUVZRUNRQO\SDUWWLPHLQ agriculture.

4 Nearly half of the population living in poverty can be found in the north-east region, with most of the remainder in the border mountain provinces in the northern region, and in the four southernmost provinces (FAO, 2011).

5 3DUWLFXODUO\VLQFHWKHƅRRGVZKLFKGDPDJHGRYHU}PLOOLRQKHFWDUHVRIODQGXQGHUFURSFXOWLYDWLRQtPRVWO\ rice – with adverse impacts on 1,280,000 farming households (Supnithadnaporn et al., 2011)

6 For example, the study predicted that, under a particular scenario of the Intergovernmental Panel on Climate Change (IPCC), cassava production would be severely affected but productivity of rain-fed rice and sugar cane PLJKWDFWXDOO\VHHLQFUHDVH 7DQJZLVXWLMLW

7 ,QWHUYLHZZLWK$5'$RIƄFLDOV

8 )RUH[DPSOH7KDLODQGORVWLWVVWDWXVDVWKHZRUOGpVWRSULFHH[SRUWHULQŸGXHWRJRYHUQPHQWVWRFNSLOLQJ of rice. India and Viet Nam both gained ground in export shares as a result. Moreover, average yields of paddy rice per hectare in China, India, Indonesia, and Viet Nam are all higher than in Thailand (World Bank, 2012a), although LWVKRXOGEHQRWHGWKDW7KDLODQGpVKLJKYDOXHMDVPLQHULFHLVLQKHUHQWO\ORZ\LHOGLQJ

9 Including agricultural, environmental, energy and STI policies.

10 This section draws on Chainuvati and Athipanan, 2001 and Leturque and Wiggins, 2011.

11 Some other important related areas, such as industrial policy, have been omitted in order to avoid overcomplexity.

12 1DWLRQDOSROLFLHVIRUKXPDQUHVRXUFHGHYHORSPHQWDUHGLVFXVVHGLQFKDSWHU}

13 Previously, support policies included the provision of credit and subsidies to farmers to facilitate wider use of fertilizers, but at present, government support is limited to credit provision through the Bank for Agriculture and Agricultural Cooperatives (Poapongsakorn and Aroonkong, 2013).

14 For example, the rice and fertilizer policies.

15 $UHFHQWSDSHURQDJULFXOWXUHLQ7KDLODQGLGHQWLƄHGWKHOLPLWHGH[WHQWRILUULJDWLRQDVRQHRIWKHPDMRUFDXVHVRIORZ productivity (Yoovatana, 2013).

16 'DWDSURYLGHGE\DODUJHƄUPEDVHGRQWKH\LHOGVIURPWKHLURZQFRQWUDFWHGIDUPHUVLQWKHVDPHDUHD,WLVUHDVRQDEOH WRDVVXPHWKDWRWKHUIDFWRUV HJPRUHIHUWLOHVRLOV GLGQRWYDU\VXIƄFLHQWO\WRDFFRXQWIRUWKHODUJHGLIIHUHQFHLQ\LHOG

17 ,QFOXGLQJHQJLQHHULQJSURMHFWVIRUH[DPSOHIRUGDPUHKDELOLWDWLRQJURXQGZDWHUGULOOLQJDQGFRQVWUXFWLRQRISXPSLQJ VWDWLRQVUHPRWHVHQVLQJ*,6DQGGDWDEDVHGHYHORSPHQWDQGPDQDJHPHQWRIHDUO\ƅRRGZDUQLQJV\VWHPVDQG R&D, for example to better understand the natural mechanism through which saline soil is formed (Siripornpipul, 2014).

18 See annex 2 (only an executive summary of the policy document is available in English.

19 Though biotechnology R&D that is relevant to small-scale agriculture is certainly undertaken in universities and in BIOTEC.

20 7KHHYLGHQFHVKRZVERWKSRVLWLYHDQGQHJDWLYHƄQGLQJV VHHIRUH[DPSOH*LOEHUW EXWVRPHXQFHUWDLQWLHV KDYH DW OHDVW EHHQ UHVROYHG VXIƄFLHQWO\ IRU LQIRUPHG GHFLVLRQPDNLQJ 7KH :RUOG +HDOWK 2UJDQL]DWLRQ DQG )$2 SURYLGH JXLGDQFH RQ JHQHWLFDOO\ PRGLƄHG *0 IRRGV VHH IRU H[DPSOH :+2 7KH &RGH[ $OLPHQWDULXV Commission (Codex) developed principles for human health risk analysis of GM foods in 2003.

21 :KLFKLVJXLGHGE\WKH7KDLODQG,QIRUPDWLRQDQG&RPPXQLFDWLRQ7HFKQRORJ\3ROLF\)UDPHZRUN Ÿ

22 That is, where several different R&D activities are needed to dovetail with each other (for example, where the results IURPRQHSURMHFWDUHQHHGHGLQRUGHUWRFDUU\RXWDVHFRQGUHODWHGSURMHFW RUWRDGGUHVVDVSHFLƄFDSSOLFDWLRQRU REMHFWLYH 70 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

23 Technologies for farmers consist of hard technologies (agricultural machinery, seeds and other planting materials, fertilizers and pesticides), and also soft technologies/techniques (systems of intercropping, fertilizer application and planting methods).

24 One Thai example is that of a small-scale farmer who has developed two new varieties of glutinous rice (Chinvarakorn, 2010).

25 Traditional knowledge in respect of farming is tacit knowledge that has been accumulated by, and passed down through, previous generations of farmers/country dwellers.

26 In 2012, there were 3,768 agricultural cooperatives, with an average membership of 1,652 farmers.

27 The cooperative takes out the loan from the Bank for Agriculture and Agricultural Cooperatives, and uses it to supply credit to its members.

28 A National Farmers Union was set up by an Act of Parliament in 2010, but it has only around 80,000 members to date.

29 In the past, MOAC also supported the development and growth of Thailand’s seed industry, which imports seeds for a wide variety of minor crops grown in the country.

30 $FFRUGLQJWRFRPPHQWVPDGHGXULQJƄHOGLQWHUYLHZVLQ-XQH

31 Mass media, even if not included as a stakeholder in this study, can often be very effective channels for diffusion of knowledge and information relevant to farmers. In fact, the Bank for Agriculture and Agricultural Cooperatives SURGXFHV79SURJUDPPHVIRUIDUPHUV+RZHYHUPDQ\UXUDODUHDVLQWKHUHJLRQVODFN79RUUDGLRWUDQVPLVVLRQVWKH central region is the only agricultural region with good coverage (as reported during interviews in June 2014).

32 $FRRSHUDWLYHEDVHGLQDQDUHDZLWKUHODWLYHO\JRRGFRQQHFWLYLW\HVWLPDWHGWKDWDERXW}SHUFHQWRILWVPHPEHUV KDYHPRELOHSKRQHVEXWRQO\}SHUFHQWKDYHVPDUWSKRQHV,QWKHUHJLRQVRQO\DERXW}SHUFHQWRIWKHSRSXODWLRQ XVHVWKH,QWHUQHW FKDSWHU}

33 The current focus, is on meeting safety and quality standards for food exports, is less relevant for most small- scale farmers as they mostly sell to the domestic market. As domestic standards continue to be strengthened, for H[DPSOHWRLQFOXGHJRRGDJULFXOWXUDOSUDFWLFHVDQGWUDFHDELOLW\FULWHULDWKHVHPD\EHFRPHDVLJQLƄFDQWEDUULHUWR market access for small-scale farmers.

34 The development and content of the “apps.” is reported not to be problematic.

35 At least until June 2014.

36 The Director of GISTDA has recently been appointed to the Executive Board of NECTEC.

37 Time constraints prevented a broader survey of agricultural R&D activities carried out in universities, but a number of general observations could be drawn from the interviews held in October 2013 and June 2014.

38 Turnkey technologies are those developed to be sold, ready-to-use, to any buyer, as opposed to customized WHFKQRORJLHV WKDW KDYH EHHQ GHYHORSHG WR UHVSRQG WR VSHFLƄF QHHGV RU WHFKQRORJLHV DQG PD\ EH FXVWRPL]HG further after delivery.

39 Sriboonchitta and Wiboonpongse (2008) found that information about fertilizers and other chemical inputs was the single most important knowledge requirement cited by their sample of small-scale farmers.

40 Processing SMEs were not surveyed as part of this review.

41 7KHVHƄUPVDUHNHHQIRUIDUPHUVWRLQFUHDVHSURGXFWLYLW\DVVHFXULW\RIVXSSO\RIUDZVXJDUIRUSURFHVVLQJLVDQ LVVXHDFURVVWKHFRXQWU\EXWRQHƄUPQRWHGWKDWWKHFXUUHQWSULFLQJV\VWHPDFWVDVDGLVLQFHQWLYHIRUIDUPHUVLQWKLV respect.

42 Under the present system, students may progress to advanced vocational education to gain a vocational degree WKUHH\HDU SURJUDPPH RU YRFDWLRQDO GLSORPD WZR\HDU SURJUDPPH +ROGHUV RI D YRFDWLRQDO GLSORPD QHHG WR undertake a further two-year course of study at a university in order to gain an academic degree. Progression from a vocational school directly to university is not possible.

43 In recent years, the Basic Plan has emphasized the need to increase farm sizes by introducing the concept of “core IDUPHUVrZKRZLOOGULYHDJULFXOWXUDOWUDQVIRUPDWLRQLQ-DSDQ&RUHIDUPHUVLQFOXGHFHUWLƄHGIDUPHUVDQGFRPPXQLW\ based farming cooperatives that have, or are able to, consolidate small farm holdings into large business farms (OECD, 2009). I

Enhancing the availability and quality of human resources in STI 72 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

To support its aim to transform its economy into an economy. Thus, it encompasses the development of innovation-based one and escape the middle-income FRPSHWHQFLHV LQ VFLHQWLƄF DQG WHFKQRORJLFDO DUHDV trap, Thailand needs to enlarge its human resource (natural sciences, engineering and technology, medical base for STI activities and ensure that the level and sciences, agricultural sciences and social sciences) as range of skills adequately respond to the country’s well as of entrepreneurial, managerial and innovation needs. There is growing demand for STI-related skills.1 It considers training and education at the human resources, from vocational to doctorate technical and vocational levels as well as at the higher levels, and certain technical skills and entrepreneurial education levels, along with skills development in the competences are particularly scarce. Raising the workplace. It also considers additional mechanisms quality of its STI training and education has become beyond education and training systems that DPDMRUFKDOOHQJHIRUXQOHDVKLQJ7KDLODQGpVSRWHQWLDO contribute to the development of STI skills, including those that providing learning opportunities, interaction This chapter examines the extent to which the existing between teaching/research institutions and the private training and education systems provide the STI skills sector (e.g. mobility of teachers and researchers), that industry, academia and the Thai economy at the contribution of TNCs to the development of large require, and suggests a number of policies and concrete actions to be considered by policymakers, WHFKQRORJLFDO FDSDELOLWLHV LQ GRPHVWLF ƄUPV DQG WR training, as well as the opportunities provided by educational institutions and industry. Most of the international and regional collaboration and mobility. key concerns for STI-related human resources GHYHORSPHQW +5' KLJKOLJKWHGKHUHDUHFORVHO\OLQNHG to broader national educational issues, which deserve .H\HGXFDWLRQWUHQGV in-depth examinations, but are beyond the scope of Thailand has experienced a steady and substantial this study. increase in student participation at all educational levels as a result of explicit public policies (World Bank, 2009; Mounier and Tangchuang, 2010). In 2012, A. THE CONTEXT WKHUHZHUH}PLOOLRQVWXGHQWVHQUROOHGLQYRFDWLRQDO OF STI-RELATED HGXFDWLRQDQG}PLOOLRQLQKLJKHUHGXFDWLRQ*URVV HUMAN RESOURCE enrolment ratios have substantially increased in the ODVWGHFDGH t IURP}SHUFHQWWR}SHU DEVELOPMENT FHQWLQVHFRQGDU\HGXFDWLRQDQGIURP}SHUFHQWWR 2 +XPDQ UHVRXUFHV LQ 67, DUH HVVHQWLDO LQSXWV IRU WKH }SHUFHQWLQWHUWLDU\HGXFDWLRQ Tertiary enrolments development and diffusion of knowledge and for the exceed the expected level for Thailand’s per capita formation of an indigenous capacity for innovation. income (World Bank, 2012b). Public educational This analysis covers the development of human institutions are the main providers of education resources in STI needed for an innovation-driven WDEOH}

7DEOH 1XPEHURILQVWLWXWLRQVWHDFKHUVDQGVWXGHQWVDWHDFKHGXFDWLRQDOOHYHO

Institutions Teachers Students

Per cent Per cent Per cent Per cent Per cent Per cent Education level Total in Total in Total in of public of public of public Bangkok Bangkok Bangkok

Basic/general education 34 378 90.7 2.5 506 598 79.1 7.4 9 120 556 80.5 7.0

Vocational 874 48.2 12.1 43 476 58.1 13.4 1 007 468 65.6 13.4

Higher education 150 52.7 30.7 58 694 82.3 41.7 2 196 859 88.0 44.6

Source: Ministry of Education, 2012. CHAPTER IV : ENHANCING THE AVAILABILITY AND QUALITY OF HUMAN RESOURCES IN STI 73

Public expenditure on education has more than age children, on average, display unsatisfactory GRXEOHGLQWKHSDVWGHFDGHWR}PLOOLRQEDKW performance in analytical and synthesizing abilities }ELOOLRQ LQDQGUHPDLQVDVWDEOH}}SHU as well as in critical and creative thinking (Ministry cent of GDP (Ministry of Education, 2012). of Education, 2012). The results of international +RZHYHULWVVKDUHLQWKHQDWLRQDOEXGJHWIHOOIURP assessments, such as PISA3 and TIMSS,4 indicate WR } SHU FHQW GXULQJ WKH SHULRG t that the average Thai student’s performance in 0LQLVWU\ RI (GXFDWLRQ 2YHU } SHU basic education is relatively poor. For instance, cent of the education budget has been allocated in 2012, the PISA mean scores for Thailand in to personnel and other recurrent expenditures, mathematics, reading and science were well below whereas the proportion of investment expenditure the OECD average, and half of Thai students were has declined over the past five years, and was only ORZ SHUIRUPHUV LQ PDWKHPDWLFV Ÿ EHORZ OHYHO } SHU FHQW RI WKDW EXGJHW LQ 0LQLVWU\ RI WDEOH} 2(&' D ,Q DGGLWLRQ WKHUH LV Education, 2012). disparity in learning achievement between Bangkok While Thailand’s educational policies and and areas outside Bangkok, which is attributable investments have resulted in much greater access to differences in the quality of education children to education, there needs to be considerable UHFHLYH DQG QRW MXVW WR WKHLU VRFLRHFRQRPLF improvement in learning performance. School- background (World Bank, 2011).

7DEOH 3,6$UHVXOWVRIVWXGHQWSHUIRUPDQFHLQPDWKHPDWLFVUHDGLQJDQGVFLHQFHVHOHFWHG$VLDQFRXQWULHV

Mathematics Reading Science

Share of low Share of top Mean achievers in performers in $QQXDOL]HG Mean $QQXDOL]HG Mean $QQXDOL]HG PISA mathematics mathematics change in PISA change in PISA change in score /HYHO /HYHORU score points score score points score score points 3HUFHQW 3HUFHQW

OECD average 494 23.0 12.6 -0.3 496 0.3 501 0.5

Shanghai-China 613 3.8 55.4 4.2 570 4.6 580 1.8

Singapore 573 8.3 40.0 3.8 542 5.4 551 3.3

Rep. of Korea 554 9.1 30.9 1.1 536 0.9 538 2.6

Viet Nam 511 14.2 13.3 m 508 m 528 m

Thailand 1.0 1.1

Malaysia 421 51.8 1.3 8.1 398 -7.8 420 -1.4

Source: OECD, 2014a. 74 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

2YHUYLHZRIWKHHGXFDWLRQV\VWHP

,Q } PLOOLRQ VWXGHQWV ZHUH HQUROOHG LQ IRUPDO the school-age population studying in the formal DQG QRQIRUPDO HGXFDWLRQ ZLWK } SHU FHQW RI education system (Ministry of Education, 2012).

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$JH

24 Doctoral degree PhD/advanced professional degree

Master’s degree 22-23 199 437 students (approx. 175 000 master’s Master’s degree DQG3K'VWXGHQWV

20-21 Undergraduate Higher vocational Bachelor’s degree 1 651 599 students 321 705 students 18-19 Diploma SHUFHQW SHUFHQW

8SSHUVHFRQGDU\JHQHUDO Vocational secondary 15-17 1,424,476 students 716 813 students SHUFHQW SHUFHQW Lower secondary 12-14 VWXGHQWV SHUFHQW Basic education/ YRFDWLRQDOFHUWLƂFDWH Primary 6-11 Compulsory education VWXGHQWV SHUFHQW Pre-primary 3- 5 VWXGHQWV SHUFHQW Source: Ministry of Education, 2012; World Bank, 2009. 1 *URVVHQUROPHQWUDWLR6WXGHQWHQUROPHQWLQDVSHFLƄFOHYHORIHGXFDWLRQUHJDUGOHVVRIDJHH[SUHVVHGDVDSHUFHQWDJHRIWKH SRSXODWLRQLQWKHRIƄFLDODJHJURXSFRUUHVSRQGLQJWRWKDWOHYHORIHGXFDWLRQ VFKRRODJHSRSXODWLRQ

%DVLFHGXFDWLRQ were enrolled in the normal and dual vocational training programmes. Two thirds of students were The budget allocated for basic education and the number enrolled in the 421 public colleges administrated by RILQVWLWXWLRQVKDVLQFUHDVHGVLJQLƄFDQWO\VLQFHWKH OVEC and the remainder were enrolled in private Education Act came into force, and Thailand has made vocational schools and colleges overseen by the impressive progress in providing basic education to 2IƄFHRI3HUPDQHQW6HFUHWDU\0R(&ROOHJHVXQGHU most of its population. Two main challenges remain: OVEC are undergoing a restructuring process and (i) enhancing the quality of education, particularly that being merged into 19 vocational education institutions of training; and (ii) ensuring greater equality in terms and four agricultural education institutions. of students’ participation and performance. The VLJQLƄFDQWLQHTXDOLWLHVLQSDUWLFLSDWLRQDQGSHUIRUPDQFH Non-formal TVET, overseen by the Department of students are largely due to the heterogeneity of of Skills Development (DSD), Ministry of Labour, schools performance along urban/ rural divides (OECD, comprises short-term vocational training courses 2013b; Tangkitvanich and Sasiwuttiwat, 2012). SURYLGHG E\ ƄUPV DQG SXEOLF LQVWLWXWLRQV 7KHVH involve pre-employment courses and skills upgrading 7HFKQLFDODQGYRFDWLRQDOHGXFDWLRQDQG for the self-employed and for employees. Most non- WUDLQLQJ 79(7 IRUPDO 79(7 WUDLQLQJ LV SURYLGHG E\ ƄUPV WR WKHLU employees, supported by a tax deduction of up to Formal TVET is offered at three levels: upper }SHUFHQWRIWKHFRVWRIWKHWUDLQLQJFRXUVH7KLV VHFRQGDU\SRVWVHFRQGDU\DQGXQLYHUVLW\ ƄJXUH} incentive has succeeded in improving quantity but not DQG LV DGPLQLVWHUHG E\ WKH 2IƄFH RI WKH 9RFDWLRQDO TXDOLW\)RUH[DPSOHLQ}PLOOLRQHPSOR\HHV Educational Commission (OVEC), Ministry of were trained as a result of this incentive, but the (GXFDWLRQ 02( ,QRYHURQH}PLOOLRQVWXGHQWV average training expenditure per head was only 742 CHAPTER IV : ENHANCING THE AVAILABILITY AND QUALITY OF HUMAN RESOURCES IN STI 75

baht (around $22).5 Short-term vocational training DUH HQUROOHG LQ XQGHUJUDGXDWH SURJUDPPHV } SHU courses are also provided by DSD’s own training cent of school age population), 174,000 in master’s centres, although their capacity is more limited. Under programmes and 20,000 in doctoral programmes both schemes, the training is of uneven quality and ƄJXUH} VXEMHFW WR OLPLWHG HYDOXDWLRQ :RUOG %DQN E The Skills Development Fund, set up to promote non- 2WKHUHGXFDWLRQDODQGWUDLQLQJLQVWLWXWLRQV formal TVET, has had only a limited impact, reportedly GXHWRDQLQKHULWHGRXWVWDQGLQJGHEWDQGLQVXIƄFLHQW A number of public educational institutions have also promotion of the fund. been established to promote science education. For instance, the Mahidol Witthayanusorn School provides The development and adoption of standards for specialized education with full scholarships to 720 gifted national skills are also promoted by DSD. Around 100 students in mathematics, science and technology from national standards have been developed in Thailand grades 10 to 12. This model has been replicated in12 EXW DUH QRW \HW ZLGHO\ DGRSWHG %HLQJ FHUWLƄHG LQ D regional Princess Chulabhorn’s Colleges. The Institute skill gives the right to a minimum wage, but skill for Promotion of Teaching Science and Technology FHUWLƄFDWLRQ LV QRW FRPSXOVRU\ '6' SODQV WR PDNH (IPST) provides teachers’ training and develops FHUWLƄFDWLRQLQFHUWDLQVWDQGDUGVRIVNLOOVFRPSXOVRU\ teaching materials for science education. starting with those relating to health and safety. ,Q DGGLWLRQ D QXPEHU RI ODUJH ƄUPV KDYH VHW XS corporate educational institutions (Box 4.1), not only +LJKHUHGXFDWLRQV\VWHP to train their own personnel, but, more importantly, to There are currently 152 higher education institutions,6 JHQHUDWHDVXIƄFLHQWVXSSO\RIWKHVNLOOHGPDQSRZHU mostly universities and colleges, including 72 private WKHVHƄUPVUHTXLUHZKLFKWKHSXEOLFV\VWHPLVXQDEOH colleges and universities, 15 public universities, to provide. Such institutions have strong links with the }DXWRQRPRXVXQLYHUVLWLHV5DMDEKDWXQLYHUVLWLHV private sector and tend to combine academic tuition DQG5DMDPDODXQLYHUVLWLHV$URXQG}PLOOLRQVWXGHQWV with practical training.

%R[ 3ULYDWHVHFWRULQLWLDWLYHVWRDGGUHVVVKRUWDJHVRIPDQDJHPHQWWHFKQLFDODQGVFLHQWLƂFVNLOOV

The Thai Nichi Institute of Technology, founded in 2005 by the Thai-Japanese Technology Promotion Institute, provides education at undergraduate and graduate levels in engineering, information technology, business administration and language skills. The programmes combine academic teaching with practical training in Japanese companies based in Thailand. Since 2007, over 2,600 students have enrolled. The institute also collaborates with 40 academic institutions in Japan.

The Panyapiwat Institute of ManagementZDVIRXQGHGLQE\DƄUPRIWKH7KDL&3*URXSZKLFKRSHUDWHV 7,500 7-Eleven convenience stores around the country. The institute was set up to offer skills training to personnel and managers required for expanding its retail stores in Thailand. More than 6,000 students are enrolled in its bachelor’s and master’s programmes. The PTT Group, Thailand’s largest petrochemical company, is establishing an academy and a research and training LQVWLWXWH WR WUDLQ TXDOLƄHG SHUVRQV LQ 6 7 DQG FRQGXFW KLJKOHYHO UHVHDUFK 7KH Rayong Institute of Science & Technology will offer master’s and PhD programmes in chemical engineering and materials science. The PTT Group KDVDOORFDWHG}PLOOLRQ RU}PLOOLRQEDKW SHU\HDUIRUƄYH\HDUVWREXLOGWKHQHFHVVDU\LQIUDVWUXFWXUHDQGVXSSRUW the R&D activities of the institute, which is modelled on the Korean KAIST, and will cater to 350 students. The Rayong Science Academy will be a science-based secondary school in Rayong province to serve the petrochemical industry in WKH(DVWHUQ6HDERDUG3URMHFW%RWKDUHVFKHGXOHGWRRSHQLQ Sources: UNCTAD based on interviews held in October 2013 (see: www.pim.ac.th/en/; www.raist.pttplc.com; www.tni. ac.th/web/en/).

(GXFDWLRQSROLF\ student loan programmes have effectively boosted SDUWLFLSDWLRQ+RZHYHUWKHRYHUDOOSHUIRUPDQFHRIWKH After more than a decade of educational reform, system remains poor (Fry and Bi, 2013; OECD, 2013b; Thailand has been successful in promoting education Tangkitvanich and Sasiwuttiwat, 2012). Learning IRU DOO HQUROPHQWV KDYH VLJQLƄFDQWO\ LQFUHDVHG DQG outcomes are poor, teaching and learning processes 76 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

are still very much teacher-centred, and there are each of which is relatively powerful, and has its own FRQVLGHUDEOHGLIƄFXOWLHVLQUHFUXLWLQJTXDOLƄHGWHDFKHUV governing structure, though with some overlapping and in holding educational institutions accountable. IXQFWLRQVZLWKRWKHURIƄFHV :RUOG%DQN 2WKHU There remains a considerable shortage of STI RIƄFHV LQGHSHQGHQW RI WKH 0LQLVWU\ RI (GXFDWLRQ personnel and productivity growth has stagnated. are also involved in the administration of education. Furthermore, budget decisions are made by the The following sections examine in more detail the Bureau of the Budget rather than by the Ministry. education policy and programmes pertaining to This fragmentation and overlapping has generated human resources development in STI in Thailand. a complex system that hinders overall coordination and accountability in education (World Bank, 2012b). .H\ QDWLRQDO SROLFLHV IRU 67,UHODWHG KXPDQ While some policies have guided implementation (e.g. resources development the National Education Act of 1999) others (such as National policy clearly acknowledges the need to WKH 1DWLRQDO 67, 3ROLF\ DQG 3ODQ Ÿ GR develop human resources in STI (ER[} ). Overall not seem to guide policy action. In addition, the high HGXFDWLRQ SROLF\ SURYLGHV IRU +5' LQ 67, EXW LWV turnover of ministers of education has not helped implementation faces several hurdles. One of the main to steer and provide the continuity that educational problems lies in the fragmentation of education policy: programmes require. Policy implementation is also its formulation and administration under the Ministry hindered by limited monitoring and evaluation of RI (GXFDWLRQ LV PDQDJHG E\ ƄYH GLVWLQFW RIƄFHV7 education programmes and policies.

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The 11th 1DWLRQDO (FRQRPLF DQG 6RFLDO 'HYHORSPHQW 3ODQ Ÿ LGHQWLƄHV D QXPEHU RI UHDVRQV IRU improving Thailand’s human capital: an ageing society, labour shortages, low skills and productivity, and the forthcoming ASEAN economic community (AEC). Key target indicators include: increasing the number of personnel LQ 5 ' WR SHU SRSXODWLRQ DQG LQFUHDVLQJ ODERXU SURGXFWLYLW\ E\ DW OHDVW } SHU FHQW SHU DQQXP 7KH SODQDOVRSURYLGHVJXLGHOLQHVRQKRZWRSURPRWH+5'LQFOXGLQJSURPRWLQJVWXGHQWFHQWUHGOHDUQLQJSURFHVVHV HQFRXUDJLQJWHDFKHUVWRKDYHHGXFDWLRQFHUWLƄFDWHVUHOHYDQWWRWKHVXEMHFWVWKH\WHDFKEXLOGLQJZRUNIRUFHFDSDFLW\ in the agricultural sector, supporting the development of researchers and innovators, developing semi-skilled ODERXUWKURXJKYRFDWLRQDOHGXFDWLRQSUHSDULQJIRUWKHIUHHƅRZRIODERXUZLWKLQ$(&SURYLGLQJLQFHQWLYHVWRDWWUDFW professional and high-skilled workers, and providing the infrastructures and resources required for lifelong and ƅH[LEOHOHDUQLQJ

The National Education Act of 1999XQGHUOLHVWKHQDWLRQDOYLVLRQIRUHGXFDWLRQDOUHIRUP,WVPDLQREMHFWLYHVDUH the promotion of education for all, encouraging wider participation in the provision of education and the development of educational bodies based on the principles of unity in policy and diversity in implementation; decentralization of authority; establishing educational standards and quality assurance; raising the professional standards of teachers, faculty staff and educational personnel; mobilizing resources from a wider range of sources; and establishing SDUWQHUVKLSV ZLWK VWDNHKROGHUV 7KH 6HFRQG 'HFDGH RI (GXFDWLRQ 5HIRUP Ÿ IRFXVHV RQ PDQDJLQJ the internationalization of education in Thailand, improving education quality and standards, addressing regional inequalities, and developing S&T and R&D (UNESCO, 2011).

The 1DWLRQDO67,3ROLF\DQG3ODQŸDOVRLGHQWLƄHV+5'LQ67,DVDNH\VWUDWHJLFLVVXHDQGVHWVVSHFLƄF WDUJHWVWKHSURSRUWLRQRIJUDGXDWHVLQVFLHQFHDQGWHFKQLFDOƄHOGVWREHLQFUHDVHGWRDWOHDVWSHUFHQWODERXU SURGXFWLYLW\IRU6 7JUDGXDWHVWRJURZE\DWOHDVW}SHUFHQWDQQXDOO\WKHUDWLRRI5 'SHUVRQQHOWRLQFUHDVHWR SHUSRSXODWLRQ}SHUFHQWRIZKRPVKRXOGZRUNLQWKHSULYDWHVHFWRU

The Skills Development Promotion Act 2002 promotes pre-employment training, skills upgrading and training IRU MRE FKDQJH LW KDV HVWDEOLVKHG D 6NLOOV 'HYHORSPHQW )XQG WR VXSSRUW VNLOOV GHYHORSPHQW DQG SURPRWHV WKH development of national skills standards.

The Vocational Education Act 2008, in accordance with the National Economic and Social Development Plan and the National Education Plan, aims at developing the human skills, techniques and technology that the market demands. CHAPTER IV : ENHANCING THE AVAILABILITY AND QUALITY OF HUMAN RESOURCES IN STI 77

3ROLF\ PHDVXUHV DQG SURJUDPPHV SURPRWLQJ are being implemented at all levels of education and STI-related human resources ƄQDQFHGLPSOHPHQWHGE\DP\ULDGRILQVWLWXWLRQVZLWK WKHYDULRXVREMHFWLYHVRIVXSSRUWLQJ67,WHDFKLQJDQG Thailand has put in place a large number of STI learning, providing research scholarships and programmes to support the development of human promoting cooperative education. A number of key resources in STI (Figure 4.2). These programmes policy measures are discussed next.

)LJXUH 2YHUYLHZRI7KDLODQGpVSURJUDPPHVIRUKXPDQUHVRXUFHVGHYHORSPHQWLQ67,

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

Life long Learning/Training Enabling System Formal Education/Others

STI HR Development Programmes TTalentalent MMobilityobility //STI)STI)

DPST (IPST) - STOU JSTP (NSTDA) - NFE SCiUS - On the job training (MOST) Science Scholars (MOST, OHEC) - Promotion tie in with mastery Technology Curriculum (IPST) Technology Teacher - Commercial Package Curriculum (IPST) Training S&M - Employer Approval Talent MWIT PSMT (IPST) (IPST) Chulabhorn ODOS (MoE) RGI,. RRI. (TRF) Coaching KNIT Olympiad (OBEC, IPST,. POSN.) (TYSA) STEM Education (STI, IPST) THAIST (STI) Training EBL Gifted SBTS (OVEC) Graduate (OKMD) (IPST) Classroom YSTP (NSTDA) Program (IPST) WIL (TISTR+Uni) UBI Brain- Children’s University WiL (OHEC, Co-STRD (OHEC) based (NSTDA) STI, (MOST) Childhood Learning KMUTNB, SMT (IPST) (OKMD) Science Classroom KMUTT, TGIST (OBEC/IPST/MOST/POSN) OVEC) (NSTDA) Little Scientist House (HRH Sirindhorn Foundation, OBEC, EBL (IPST) NSTDA, IPST., NSM., Nanmee)

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Scholarships

Scholarship programmes have long supported the only a limited number of scholarships in relation JHQHUDWLRQ RI KLJKO\ TXDOLƄHG KXPDQ UHVRXUFHV LQ to the size of the student population: less than STI, largely contributing to the supply of researchers 700 scholarships per year, while there are over for public research organizations and ministries. } PLOOLRQ VWXGHQWV HQUROOHG LQ XQGHUJUDGXDWH The Thai Government provides long-term STI- PDVWHUpV RU GRFWRUDWH SURJUDPPHV ƄJXUH} related scholarship programmes through various Public scholarships require recipients to work for JRYHUQPHQWDJHQFLHV VHHER[}IRUDGHVFULSWLRQ several years8LQDVSHFLƄFSXEOLFUHVHDUFKLQVWLWXWLRQ RIWKUHHPDMRUSURJUDPPHV +RZHYHUWKH\SURYLGH upon completion of their studies. 78 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

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The Development and Promotion of Talents in S&T Scholarship Programme by the Institute for the Promotion of Teaching S&T (IPST) has provided scholarships to talented students in science and technology since 1984. DPST collaborates with 10 schools, pairing each school with a mentor university. Each year, the programme offers 100 scholarships at secondary level and 180 at higher levels. It has granted 3,360 scholarships to 1,953 students since LWVLQFHSWLRQ}SHUFHQWRIZKLFKZHUHDZDUGHGLQWKHƄHOGVRIVFLHQFHSK\VLFVPDWKHPDWLFVFKHPLVWU\DQG biology. The Ministry of Science and Technology (MOST) Scholarship Programme has granted scholarships to students (high-school level to doctorate), civil servants and university faculty members since 1990, 3,449 for studying abroad and 238 scholarships for studying in Thailand. By 2011, 1,941 persons had graduated from the programme and were working in universities and government agencies. The Royal Golden Jubilee PhD Program, an initiative of the TRF, provides 300 fellowships annually for doctoral students to conduct research, including one year of study abroad with foreign co-advisers. Since 1993, over 2,000 PhD students have graduated from the programme and over 1,600 doctoral candidates are in various stages of completing their studies. The programme has involved more than 1,400 Thai advisers and more than 2,300 international co-advisers in 40 different countries. Its new International Research Network supports researchers and networks formed around a research topic of interest to Thailand. Source: MOST, IPST and TRF.

Creating national research universities SDSHUV LQ LQWHUQDWLRQDO MRXUQDOV SDSHUV LQ

9 QDWLRQDOMRXUQDOVZHUHJUDQWHGSDWHQWV XQGHU In 2009, nine public universities with strong research the Patent Cooperation Treaty and 78 in Thailand), capabilities to produce research outputs and human enrolled 1,717 PhD and 6,119 master’s students, UHVRXUFHVLQDGYDQFHGƄHOGVRIVWXG\ZHUHVHOHFWHG graduated 609 PhDs and 3,541 master’s students, to become national research universities (NRUs). The FRQGXFWHG MRLQW UHVHDUFK SURJUDPPHV ZLWK 10 Thai Government initially pledged to provide the industry, provided 11,729 contracts of technical VHOHFWHG 158V DQ DGGLWLRQDO EXGJHW RI } ELOOLRQ consultancy services, and licensed 1,203 contracts for EDKWIRUWKHSHULRGŸWRHQDEOHWKHPWRIXOƄO technology transfer. The centres have enabled smaller their research missions. In fact, the nine NRUs only universities to establish contacts and networks with UHFHLYHGDWRWDORI}PLOOLRQEDKWDVWKH%XUHDX institutions beyond their usual range. RIWKH%XGJHWDOORFDWHGŸ}PLOOLRQEDKWWRHDFK selected NRU. The annual government budgeting 7KH7KDLODQG$GYDQFHG,QVWLWXWHRI6 7 7+$,67 a more recent MOST initiative, also promotes V\VWHP OLPLWV WKH IXQGLQJ RI ORQJWHUP SURMHFWV DQG WUDLQLQJ DQG UHVHDUFK QHWZRUNV 7+$,67 GRHV thus restricts the NRUs’ ability to propose strategic not provide training itself, but links national and research plans.11 international research and training institutions that offer courses in various technology fields Promoting research networks DQGLQ67,PDQDJHPHQW7+$,67KXPDQUHVRXUFH Nine centres of excellence established by the development networks formed by Thai institutions, Postgraduate Education and Research Development foreign education and training bodies, and industrial 2IƄFH 3(5'2 XQGHU WKH 2IƄFH RI WKH +LJKHU partners are being set up for railway technology, (GXFDWLRQ &RPPLVVLRQ 2+(& VXSSRUW UHVHDUFK manufacturing design and rubber technology. Two excellence through inter-university academic further networks at the vocational school level are networks. The networks, initially supported by the also being established. $VLDQ 'HYHORSPHQW %DQN KDYH EHHQ ƄQDQFHG E\ Developing science parks the government budget since 2007, with an annual DOORFDWLRQRIŸ}PLOOLRQEDKW Ÿ}PLOOLRQEDKW The Government has supported the establishment per centre). Two additional centres of excellence, in of several science parks across Thailand.12 The most physics and mathematics, were established in 2007. advanced one is the Thailand Science Park located From 2000 to 2009, these centres published 2,863 QRUWKRI%DQJNRNZKLFKKRVWVWHFKQRORJLFDOƄUPV CHAPTER IV : ENHANCING THE AVAILABILITY AND QUALITY OF HUMAN RESOURCES IN STI 79

(with around 300 researchers), four national high- higher value-added activities. The following sections tech research centres (with 1,800 researchers) and discuss a number of critical areas requiring attention incubator facilities. There are plans to also establish in this regard. three regional science parks. 'HYHORSLQJKXPDQUHVRXUFHVLQ67, 3URPRWLQJXQLYHUVLW\EXVLQHVVLQFXEDWRUV 8%,V WRNHHSSDFHZLWKDQLQFUHDVLQJO\ Two public initiatives have supported entrepreneurship VRSKLVWLFDWHGHFRQRP\ in knowledge institutions: the UBI programme VXSSRUWHG E\ 2+(& 0LQLVWU\ RI (GXFDWLRQ DQG the science park incubators established by NSTDA 1.1 Increased demand for STI-related human ER[} $V GLVFXVVHG LQ GHWDLO LQ VHFWLRQ % resources except in a limited number of institutions (notably those The 2008 labour force survey estimated a shortage of in leading science parks and research institutions), 70,000 skilled workers, including 40,000 workers with business incubators have not produced tangible vocational education and 30,000 with at least higher UHVXOWVLQWHUPVRIHVWDEOLVKLQJQHZWHFKQRORJ\ƄUPV education.13 Yet the demand for STI human resources or spinning out research. is only expected to increase as the country expands its high-tech industries and attempts to become an B. STI-RELATED innovation and knowledge-based economy. HUMAN RESOURCES Similar to many other countries, the proportion DEVELOPMENT IN of graduates in science, technology, engineering and mathematics (STEM) in Thailand is relatively THAILAND: KEY ISSUES small and remains too low to support domestic 7KDLODQGVXIIHUVIURPFKURQLFVKRUWDJHVRITXDOLƄHG technological capabilities (World Bank, 2011). In human resources in STI, and the steady increase in HQUROPHQWVLQ6 7DFFRXQWHGIRU}SHUFHQW WKRVHUHVRXUFHV FKDSWHU} KDVQRWEHHQVXIƄFLHQW of all new enrolments (at all levels of education). to respond to market demands (see, for instance, +RZHYHUHQUROPHQWUDWLRVLQ6 7ZHUHPXFKIHZHU EIU, 2012; and World Bank, 2012b). Moreover, at higher levels of education. Only a third of the new WKHUH DUH SHUVLVWHQW GLIƄFXOWLHV LQ WUDLQLQJ SHRSOH LQ enrolments in bachelor’s degree programmes and a the STI skills required by an economy that aspires quarter in post-graduate programmes were in S&T to become innovation-based and able to compete in ƄJXUH}

)LJXUH 7RWDOQHZHQUROPHQWVLQ6 7YVVRFLDOVFLHQFHV

Science & Technology Social Science & Humanity

15,788 46,022 Higher than bachelor (26%) (74%)

Bachelor 169,538 353,999 (32%) (68%)

169,277 129,631 Lower than bachelor (57%) (43%)

400 300 200 100 0 100 200 300 400 (Thousand)

Source: 1DWLRQDO67,3ROLF\2IƄFH 80 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

Thailand has seen an impressive growth in R&D of FTE R&D personnel, has more than doubled, SHUVRQQHO ,Q MXVW RQH GHFDGH Ÿ WKH WKHLU UDWLR KDV IDOOHQ VWHDGLO\ IURP } SHU FHQW WR number of persons conducting R&D has doubled, 20 per cent, because they have more than tripled and the number of full-time equivalent (FTE) R&D LQ WKH SXEOLF VHFWRU WDEOH} 3ULYDWH GHPDQG IRU SHUVRQQHOKDVWULSOHG WDEOH} +RZHYHUPXFKRI trained R&D personnel is likely to continue, and even that growth has taken place in public and academic accelerate, given the low levels of private sector institutions. In the private sector, although the number participation.

7DEOH 5 'SHUVRQQHO7KDLODQGŶ

5 'SHUVRQQHO)XOOWLPHHTXLYDOHQW R&D headcount

1999 5 291 26 14 756 20 047 16 230 31 36 399 52 629

9 710 30 22 301 32 011 18 209 33 37 539 55 748

7 010 17 35 369 42 379 12 105 16 64 085 76 190

7 750 21 29 217 36 967 11 757 17 56 125 67 882

8 645 20 33 979 42 624 12 902 18 60 596 73 498

11 846 20 48 496 60 342 14 687 13 95 800 110 487

Source: 1DWLRQDO67,3ROLF\2IƄFH

'HPDQG IRU VNLOOHG ZRUNHUV LQ VSHFLƂF 67, resource management, computer modelling and ƂHOGV simulation. The Transport Infrastructure Investment Plan, which includes proposals to upgrade the railway Shortages of skilled workers in certain industries and infrastructure, is estimated to require over 30,000 economic sectors, both at the technical and graduate skilled workers for its operation and maintenance levels, have been a recurring challenge to Thailand’s ER[} 6WDIƄQJ RI WKH UDLOZD\ SURJUDPPH ZLOO EH industrial development. Currently, most critical skills challenging, particularly its more advanced aspects, shortages are estimated to be in the largest high-tech which will require railway engineers, a specialization industries (automotives and electrical and electronics). not currently taught in Thai universities. A number of In addition, demand for skilled workers is expected institutions in Thailand have taken steps to train human to increase in smaller high-tech sectors (software, resources in rail technology, but these efforts are still alternative energy, biotechnology, medical services/ modest due to the uncertainties surrounding the scope KHDOWKFDUH ƄOP DQG HQWHUWDLQPHQW (,8 of the programme and the lack of public resources There are also concerns about future shortages of DVVLJQHGWRLW7RGHYHORSVXIƄFLHQWKXPDQUHVRXUFHVD DJULFXOWXUDOUHVHDUFKHUVDQGOHFWXUHUV FKDSWHU} more ambitious capacity development programme for Two large infrastructure development programmes railway technicians and engineers will be required. To that will demand considerable amounts of skilled and increase the opportunities for technological spillovers specialized human resources, both at the technical IURPWKHVHDQGRWKHUODUJHLQIUDVWUXFWXUHSURMHFWVDQG and graduate levels, have been under consideration the building of indigenous technological capabilities, IRU VRPH WLPH 7KH :DWHU 0DQDJHPHQW 3URMHFW the capacity development programme would need SURSRVHGIROORZLQJWKHƅRRGFULVLVRIZLOOLQYHVW to be accompanied by the inclusion of local content } PLOOLRQ EDKW LQ D ZDWHU PDQDJHPHQW DQG and technology transfer considerations in the public ƅRRGSUHYHQWLRQV\VWHP,WVLPSOHPHQWDWLRQZLOOUHTXLUH procurement process related to the development of expertise in urban planning, civil engineering, water WKHVHSURMHFWVDQGVHUYLFHV CHAPTER IV : ENHANCING THE AVAILABILITY AND QUALITY OF HUMAN RESOURCES IN STI 81

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Thailand’s competitiveness is currently under threat due to the lack of an integrated transport system and of a well- GHYHORSHGDQGFRPSHWLWLYHUDLOZD\VHFWRU)RULQVWDQFHWKHLQWHUQDOWUDQVSRUWFRVWRIPRYLQJJRRGVWRSRUWVLV}SHU FHQWRIWKHRYHUDOOVKLSPHQWFRVWŸWZLFHWKHFRPSDUDEOHSHUFHQWDJHIRUERWK&KLQDDQG0DOD\VLD :RRG 7RUHGUHVVWUDIƄFFRQJHVWLRQSUREOHPVDQGKLJKWUDQVSRUWFRVWVLQWKH3DUOLDPHQWDSSURYHG7KDLODQGpVODUJHVW transport infrastructure investment plan in decades. It passed a special bill on infrastructure development, allowing the *RYHUQPHQWWRUDLVHWULOOLRQEDKWRYHUVHYHQ\HDUV Ÿ WRƄQDQFHWUDQVSRUWLQIUDVWUXFWXUHLQYHVWPHQWEH\RQG the traditional budgeting system. The plan, which intended to spend 1.66 trillion baht on upgrading rail infrastructure EHWZHHQDQG 6XUDNDPSRQWRUQ LVFXUUHQWO\XQGHUUHYLVLRQDQGLVOLNHO\WREHVFDOHGEDFNDQGƄQDQFHG XQGHUWKHƄVFDOEXGJHW7KHFXUUHQWSURSRVDOIRFXVHVRQGHYHORSLQJDGRXEOHWUDFNUDLOZD\DQGPDVVUDSLGWUDQVLWIRU ZKLFKDQHVWLPDWHGHQJLQHHUVZLOOEHUHTXLUHG ER[WDEOH}

%R[WDEOH(VWLPDWHVRIKXPDQUHVRXUFHVUHTXLUHGIRUWKHUDLOZD\SURMHFW

Project Executives Experts Engineers Architects Admin. Labour Track doubling 208 787 2 368 1 589 13 764 Track rehabilitation 35 10 34 5 70 17 789 0DVVUDSLGWUDQVLW OLQHV 30 - 3 539 220 3 933 39 705 Total 797

Note: *As estimated in a proposal by the Ministry of Transport, June 2014.

'RPHVWLFƄUPVKDYHWKHWHFKQRORJLFDOFDSDFLWLHVWRFRQWULEXWHWRWKHFLYLOZRUNRQWKHUDLOZD\LQIUDVWUXFWXUHDQGFRXOG also produce a large proportion of the spare parts and peripherals required, such as rubber parts, electric wiring and low-voltage transformers. The key providers of railway services in Bangkok (BTS and BMPCL) have strong operational capabilities, up to international VDIHW\VWDQGDUGVDVZHOODVWKHFDSDFLW\IRUURXWLQHPDLQWHQDQFH+RZHYHUWKH\ODFNDGYDQFHGWHFKQLFDONQRZOHGJHDQG rely on foreign technology suppliers to supply, maintain and upgrade critical components such as the rolling stock, signalling DQGFRQWUROVRIWZDUH7KHODFNRIGRPHVWLFFDSDELOLWLHVUHTXLUHGWRPDLQWDLQWKHSODQQHGUDLOZD\VHUYLFHVSRVHVVLJQLƄFDQW WHFKQLFDOFKDOOHQJHVWRWKHUHDOL]DWLRQRIWKHSURMHFWDQGWRORFDOƄUPVpSDUWLFLSDWLRQLQWKHSURYLVLRQRIWKRVHVHUYLFHV To address the lack of technological capabilities, NSTDA, in cooperation with NSTIPO, a number of universities, research LQVWLWXWLRQVUDLOZD\RSHUDWRUVDQGOHDGLQJVXSSOLHUVLVFDUU\LQJRXWDQXPEHURIDFWLRQVWREXLOGDZDUHQHVVVXSSRUW+5' promote technology transfer and build R&D capabilities in railway technology. $V D ƄUVW VWHS WKUHH WUDLQLQJ FRXUVHV WR EXLOG DZDUHQHVV RQ UDLOZD\ WHFKQRORJ\ ZHUH FRQGXFWHG IRU SXEOLF DQG SULYDWH VWDNHKROGHUV$PRUHDPELWLRXVSURMHFWWRGHYHORSFRPSHWHQWKXPDQUHVRXUFHVDQGWHFKQLFDOH[SHUWLVHLQUDLOWHFKQRORJLHV through the establishment of a Thai Railway Technology Development Institute by 2016 is being developed. In 2013, 19 LQVWLWXWLRQV LQFOXGLQJWKH67,SROLF\RIƄFHXQLYHUVLWLHVDUHVHDUFKLQVWLWXWHLQGXVWULDOFRPSDQLHVDQGVHUYLFHSURYLGHUV DJUHHG to collaborate in this Institute. That year, the NRCT granted $830,000 for the Institute to develop a strategic plan for rail system development in 2014, to conduct research on a half-height platform screen door, for driving simulators for training, and for a high-speed rail teaching platform. It is expected that NRCT will grant another $930,000 in 2014. Substantial work is in progress to develop a railway technical curriculum (at the vocational and technical education level), and to develop, with King Mongkut’s ,QVWLWXWHRI7HFKQRORJ\/DGNUDEDQJWKHƄUVWEDFKHORUpVGHJUHHFRXUVHLQUDLOWUDQVSRUWDWLRQHQJLQHHULQJLQ7KDLODQG 7KHVHLQLWLDOVWHSVDUHQHFHVVDU\EXWLQVXIƄFLHQWWREXLOGVLJQLƄFDQWUDLOWHFKQRORJ\FDSDELOLWLHV7KHGHYHORSPHQWRILQGLJHQRXV capabilities at the relevant scale will require a more ambitious programme with substantial resources. This will only occur if the development of domestic rail technology capabilities becomes a priority for policymakers and is accompanied by sound DQGVWDEOHƄQDQFLQJ)RULQVWDQFHDOORFDWLQJMXVW}SHUFHQWRIWKHEXGJHWSODQQHGIRUWKHUDLOZD\LQIUDVWUXFWXUHWR+5'ZRXOG SURYLGHVLJQLƄFDQWUHVRXUFHVWRGHYHORSDVROLGEDVHRIUDLOZD\HQJLQHHUV6HFRQGO\SROLF\PDNHUVFRXOGDOVRGHFLVLYHO\ contribute to building domestic capabilities by making technology transfer considerations an integral part of negotiations with international suppliers. Also, local content provisions could be included to foster the competitive procurement of spare parts IURPORFDOƄUPV,QDGGLWLRQPRUHDPELWLRQVUHTXLUHPHQWVIRUWUDLQLQJORFDOHQJLQHHUVDQGWHFKQLFLDQVFRXOGEHFRQVLGHUHG Sources: Wood, 2013; Surakampontorn, 2013, and interviews with rail transport experts in Thailand (Mr. Nakorn Chantasorn, $GYLVHUWRWKH3UHVLGHQWRI167'$1DWLRQDO67,3ROLF\2IƄFH0LQLVWU\RI7UDQVSRUW 82 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

8QGHUGHYHORSHGHQWUHSUHQHXULDOVNLOOV and addressing the trade-off between teaching to pass standardized tests and teaching to promote Thailand has a dynamic SME and business sector but creative thinking will be critical for promoting with limited appetite and capacity for innovation. Two entrepreneurship. key obstacles to the emergence of innovative SMEs and entrepreneurs in Thailand are the lack of relevant Beyond the formal education system, entrepreneurial entrepreneurial education and training, and limited skills can be supported by fostering mentorships capacities to incorporate S&T in new ventures (GEM and networks, and strengthening spaces such et al., 2012). as business incubators (see section B.3). Special efforts should be devoted to inculcating in potential Entrepreneurial skills encompass attitudes (e.g. entrepreneurs the skills needed to become more SHUVLVWHQFH QHWZRUNLQJ VHOIFRQƄGHQFH DQG innovative. For example, they should be able to HQDEOLQJVNLOOV HJEXVLQHVVSODQQLQJƄQDQFLDOOLWHUDF\ identify technology needs and skills to innovate in and managerial skills), combined with vocational/ products and processes. professional skills. In Thailand, education is still largely based on rote learning methods that do not Thailand already has some good examples of foster critical thinking and creativity or entrepreneurial educational institutions that promote entrepreneurial attitudes. Various educational policies and actions14 skills, such as the Mechai Pattana School (or Bamboo could help build innovation entrepreneurial skills. School), which could be emulated (box} ). This It will be necessary to supplement the teaching of secondary school, located in an impoverished district science, technology, engineering and mathematics LQ QRUWKHDVW 7KDLODQG XVHV SURMHFWEDVHG OHDUQLQJ with training in business management, while also to encourage creativity, analytical thinking and fostering the individual and collective attitudes that entrepreneurship. Students learn and experiment in foster entrepreneurship. A number of Thai values, areas relevant to the local community, thereby also such as perseverance and eagerness to learn, FRQWULEXWLQJWRORFDOHFRQRPLFGHYHORSPHQW$VMREV support entrepreneurial attitudes and should be built are created locally, school graduates no longer need upon. Developing adequate pedagogical methods WROHDYHWRƄQGMREVLQODUJHFLWLHV

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The Mechai Pattana School, located in Buriram province in the north-east, is a private secondary school with an innovative pedagogical approach. The school was founded in 2008 by Mechai Viravaidya, a former politician and local activist, and is supported by private donations. It aims to equip new generations with good citizenship through education, regardless of social and economic backgrounds. Teaching focuses on enabling students to analyse and create, rather than memorize. Students learn at their own pace, they choose topics they wish to explore and teachers facilitate the learning process. Pupils actively participate in the school administration and establish social enterprises aimed at having positive impacts on their community. There are no tuition fees, but the students, together with parents, contribute 400 hours of community service.

7KH SHGDJRJLFDO DSSURDFK HPSKDVL]HV SURMHFWEDVHG OHDUQLQJ 3XSLOV XVH WKH ,QWHUQHW DORQJ ZLWK WH[WERRNV DQG various elective courses (e.g. cooking, arts) are offered to harness creativity. They are also asked to identify local problems and think of solutions, which may include setting up local social enterprises. Grade 10 students spend one year in the Pattaya Campus on the east coast. Apart from their regular curriculum, they have lessons in the hospitality industry, renewable energy, water resource management, industrial operations, maritime affairs, marine life and business skills.

The School also serves as a life-long learning centre for the entire community and a hub for economic and social advancement. Everyone in the community is welcome to use the school to improve their agricultural, business, and general vocational skills. Microcredit funding is available to families, and teachers from the neighbouring rural areas can improve their teaching skills at the school’s teacher training facility.

Source: UNCTAD based on interview with the founder, and: www.mechaifoundation.org. CHAPTER IV : ENHANCING THE AVAILABILITY AND QUALITY OF HUMAN RESOURCES IN STI 83

(QKDQFLQJWKHRYHUDOOTXDOLW\RI67, IURP DFKLHYLQJ HGXFDWLRQDO REMHFWLYHV :KLOH WKLV LV D HGXFDWLRQDQGWUDLQLQJ problem with most evaluation systems, its effect seems to be particularly worrisome in Thailand. Focusing on 5DLVLQJWKHRYHUDOOTXDOLW\DQGDGGUHVVLQJ quality enhancement rather than on quality assurance LQVWLWXWLRQDOTXDOLW\JDSV would be a better means to improvement and reduce the distortions caused by quality assurance systems. Thailand needs to make substantial efforts to improve the quality of STI education and training at all levels. Overhauling technical and vocational education and For instance, national stakeholders (both public and WUDLQLQJ 79(7 private sector actors) interviewed by the STIP Review team were of the opinion that around 20 universities The existing TVET system is no longer considered out of 150 provide good education. Moreover, they D PDMRU PHFKDQLVP IRU WUDLQLQJ VNLOOHG ZRUNHUV believed it would be necessary to reduce the disparities DQG UHTXLUHV D PDMRU RYHUKDXO 7KHUH LV D FRPPRQ among teaching institutions, especially between those perception in Thailand that TVET is a second-best in Bangkok which, overall, provide much better quality education option; consequently, the number of education, than those located outside the capital. This students entering vocational education has declined issue could be addressed by better implementation VLJQLƄFDQWO\ ,Q RQO\ RQH WKLUG RI VWXGHQWV LQ of policies aimed at providing more autonomy to upper secondary education were enrolled in vocational educational institutions and promoting regional science education, far from the target of 60:40 vocational to parks. Also, schools based on a similar model to the general student ratio set by the Minister of Education. Mechai Pattana School (box}) could provide good The perceived low value of vocational education16 and relevant secondary education outside Bangkok. and the increasing opportunities to access higher education17 explain this decline. Thailand suffers from Holding educational institutions and stakeholders «diploma disease» – obtaining a degree or diploma is accountable more important than acquiring knowledge (Mounier Improving the quality of national education is an extremely DQG 7DQJFKXDQJ Ÿ DQG WKH ODERXU PDUNHW strategic and complex issue involving discussions provides economic incentives for investing in higher on what quality education means for Thailand, but it levels of education (World Bank, 2012b). 15 is beyond the scope of this analysis. +RZHYHU DQ The quality of TVET has deteriorated as a result of a important means of raising the quality of education VKRUWDJHRITXDOLƄHGWHDFKHUVSRRUWHDFKLQJPHWKRGV is to hold educational institutions and stakeholders DQGLQVXIƄFLHQWLQYHVWPHQW18 In order to improve the accountable. This is a pressing issue for Thailand, quality of TVET and make it more appealing, it needs which emerged repeatedly during the interviews PRUHDQGEHWWHUTXDOLƄHGWHDFKHUVWKURXJKUHWUDLQLQJ held by the STIP review team. There are reported and recruitment, and incentives that reward good GLIƄFXOWLHV LQ KROGLQJ XQGHUSHUIRUPLQJ HGXFDWLRQDO teaching performance, as well as updated teaching LQVWLWXWLRQV VXFK DV WKRVH LGHQWLƄHG E\ WKH 2IƄFH IRU PHWKRGV PDWHULDOV DQG HTXLSPHQW 'LIƄFXOWLHV LQ National Education Standards and Quality Assessment) recruiting teachers are exacerbated in vocational DFFRXQWDEOH 7UDLQLQJ SURYLGHG E\ ƄUPV ZKHWKHU education, where incentives are lower,19 and to make as part of dual vocational training programmes or matters worse, half the existing teachers will be through skills development programmes, has not been UHWLULQJ LQ WKH QH[W ƄYH \HDUV 7KH FXUUHQW VWXGHQW adequately evaluated. School principals and education to-teacher ratio in vocational education is 44:1 managers are not being held accountable for providing while that in basic education is 22:1 (TDRI, 2013). the educational services expected from them. Budget 7HDFKHUWXUQRYHULQVFKRROVKDVDOVREHFRPHDPDMRU allocations are not linked to performance. Education problem.20 A large proportion of teachers has not been SROLF\ REMHFWLYHV DUH QRW QHFHVVDULO\ VXSSRUWHG ZLWK trained for technical teaching and has no industry the necessary funds or tools. Regular monitoring work experience. Although there are policies and of programmes is lacking and, more importantly, programmes21 that promote the training of science evaluations of programmes are scarce and rarely made and maths teachers, it is also necessary to update public for general scrutiny. Current quality assurance teaching curricula and training materials, and to processes are concentrating too much on narrow key provide learning opportunities that promote practical performance indicators and diverting attention away learning and keep pace with industries’ needs. 84 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

Dual vocational education, a mode of formal TVET that interaction between universities and industry that provides most training in the workplace, has not been FRXOG FRQWULEXWH WR WKH LGHQWLƄFDWLRQ RI WKH VNLOOV YHU\ VXFFHVVIXO LQ 7KDLODQG 5XSDYLMHWUD SDUWO\ requirements of industry, the upgrading of university EHFDXVHRQO\DOLPLWHGQXPEHURIƄUPVSDUWLFLSDWH22 and lecturers’ and researchers’ skills and the design of often the training they provide is of poor quality and the appropriate curricula. WUDLQHUVGRQRWKDYHWKHVSHFLƄFWHDFKLQJVNLOOVUHTXLUHG University/research institutions’ linkages with To overcome the shortage of technical graduates, industry in Thailand have been weak traditionally, a number of programmes have been put in place in have involved fairly low levels of technology, and coordination with OVEC, but not mainstreamed in the have been mainly of an informal nature (World general vocational education programme. For example, Bank, 2011; Brimble and Doner, 2007; Doner Science-based technology schools were established et al., 2013). The strongest linkages have been in 2012 for enabling talented students develop their IRXQG LQ HOHFWURQLFV KDUGGLVN GULYHV ER[} technology skills. The pilot Work-integrated Learning and in biotechnology connected with agro-industry Program (WiL) coordinated by the National STI GHYHORSPHQW VHH IRU H[DPSOH ER[} %ULPEOH 3ROLF\ 2IƄFH RIIHUV WZR GHJUHH FRXUVHV DW WKH KLJK and Doner, 2007). vocational and bachelor levels, where 40 students and There are scattered efforts to promote university- their teachers spend part of their time in industry, and industry linkages in teaching. At the undergraduate classroom teaching is closely related to industry practice. level, cooperative education (a collaborative )RVWHULQJHIIHFWLYHOLQNDJHV education programme where students spend one WHUPLQƄUPV ZDVƄUVWRIIHUHGE\6XUDQDUHH8QLYHUVLW\ EHWZHHQXQLYHUVLWLHVUHVHDUFK of Technology (SUT) in 1997, and is now also offered LQVWLWXWLRQVDQGLQGXVWU\ by other universities. At the graduate level, KMUTT One important reason for the shortage of the STI has established engineering practice schools in the skills required in Thailand is the absence of systematic FKHPLFDODQGIRRGLQGXVWULHV ER[}

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5HFRJQL]LQJWKHJURZLQJGHPDQGE\VSHFLƄFLQGXVWULHVIRUHQJLQHHUVLQ.0877IRXQGHGWZRSUDFWLFHVFKRROVLWV Chemical Engineering Practice School (ChEPS), which offers a two-year international master’s degree programme run in collaboration with MIT practice school (United States); and the Food Engineering Practice School (FEPS), which is run in FROODERUDWLRQZLWKWKHIRRGLQGXVWU\,QWHUQVKLSVDUHDUUDQJHGZLWKODUJHFRPSDQLHVWKDWFDQSURYLGHVXIƄFLHQWVXSSRUW (DFKVFKRRODGPLWVVWXGHQWVSHU\HDUZLWKIXOOVFKRODUVKLSVSURYLGHGE\WKHƄUPVLQYROYHG6WXGHQWVVSHQGRQHWHUP LQƄUPVRQDGHVLJQDWHGSURMHFWZKRVHREMHFWLYHVKDYHEHHQMRLQWO\DJUHHGE\SURMHFWFRRUGLQDWRUVDGYLVHUVDQGVHQLRU ƄUPVWDII&RRUGLQDWLQJXQLWVVXSSRUWLQVWUXFWRUVVWXGHQWVDQGFRPSDQ\pVVWDII7KHSURMHFWLQYROYHVSODQQLQJFRQVXOWLQJ VHUYLFHVFRRUGLQDWLRQDQGVLWHYLVLWVDQGLWVUHVXOWVDUHSUHVHQWHGWRWKHƄUPpVPDQDJHPHQWDQGHYDOXDWHGE\PHQWRUV advisers and programme coordinators. The curriculum provides a proper balance of practical and theoretical learning. .0877pVPDQDJHPHQWOHDGVDQGVXSSRUWVWKHVHSURJUDPPHVZLWKDFOHDUSROLF\DQGWKHDOORFDWLRQRIDGHTXDWHƄQDQFLDO DQGKXPDQUHVRXUFHV7UXVWWRSPDQDJHPHQWHQJDJHPHQWFOHDUH[SHFWDWLRQVIRUWKHSURMHFWVFDSDELOLWLHVRIFRRUGLQDWLQJ units, incentive schemes and strong networks of participants have been key success factors. Most graduates have been RIIHUHGDIXOOWLPHSRVLWLRQE\WKHKRVWƄUPDIWHUWKHFRPSOHWLRQRIWKHUHVHDUFKSURMHFWV Source: 81&7$'EDVHGRQƄHOGLQWHUYLHZVLQ2FWREHU167'$VHHDOVRZZZFKHPHQJNPXWWDFWKFKHSV

The main reasons for the limited linkages between and commercialization. Academics and part of the public education institutions and industry are discussed below. administration believe that research eventually trickles GRZQVRPHKRZWRƄQGVROXWLRQVIRULQGXVWU\VRFLHW\DQG /DFN RI FRPPRQ YLVLRQ 3HUVLVWHQFH RI OLQHDU consumers. Most public research, including potentially thinking commercial research, is carried out independently RI ƄUPV 2Q WKH RWKHU KDQG ƄUPV H[SHFW UHVHDUFK Thai research universities and institutions have traditionally institutions to carry out research that is relevant and ready focused their attention on publishing their research and IRU FRPPHUFLDOL]DWLRQ +RZHYHU XQLYHUVLW\ UHVHDUFK have paid little attention to issues of technology transfer outputs often need further development and engineering CHAPTER IV : ENHANCING THE AVAILABILITY AND QUALITY OF HUMAN RESOURCES IN STI 85

RUWHVWLQJLQDSLORWSKDVHEHIRUHFRPPHUFLDOL]DWLRQŸDQ trained and the research published (and more recently DUHDLQZKLFKQHLWKHUUHVHDUFKLQVWLWXWLRQVQRUƄUPVKDYH on the intellectual property registered), but not for their LQYHVWHGVLJQLƄFDQWO\DQGIRUZKLFKƄUPVRIWHQODFNWKH capacity to transfer technology. technical and managerial skills. Mobility of researchers between the private and public There is no systemic relationship between universities/ sector is rare. Public researchers tend to spend their research institutions and the private sector involving entire academic life in public research institutions or multidirectional interactions along the different universities for two reasons. First, many researchers VWDJHV LQFOXGLQJ LGHQWLƄFDWLRQ RI 6 7 QHHGV KDYH EHQHƄWHG IURP SXEOLF VFKRODUVKLSV WKDW UHTXLUH designing and conducting research, and adapting WKHPWRZRUNIRUVHYHUDO\HDUVLQDVSHFLƄFLQVWLWXWLRQ it for commercialization. As a result, there is limited upon completion of their studies. Second, time spent research that is of interest to the private sector. researching in industry will not be recognized for their career advancement. At the same time, researchers in /DFNRILQFHQWLYHVIRUUHVHDUFKHUVDQGUHVHDUFK SULYDWHƄUPVKDYHOLWWOH HFRQRPLF LQFHQWLYHVWRZRUN institutions to collaborate with industry at research institutions.

The performance criteria for researchers and their Two recent initiatives promote mobility of researchers institutions place excessive value on publishing and EHWZHHQ XQLYHUVLWLHV DQG LQGXVWU\ ER[} 7KH patenting research, and provide little recognition (and Researchers for Research in Industry Program therefore few incentives) for activities carried out in provides funding for PhD students to conduct research FROODERUDWLRQ ZLWK LQGXVWU\ VXFK DV MRLQW UHVHDUFK in industry. And the Talent Mobility Program aims to SURMHFWVRUDGYLVRU\VHUYLFHV)RUH[DPSOHUHVHDUFK LQGXFHSXEOLFUHVHDUFKHUVWRVSHQG}SHUFHQWRIWKHLU FDUULHG RXW IRUZLWK D ƄUP LV FRQVLGHUHG D XQLYHUVLW\ working time in industry. It is a voluntary programme service and does not contribute to researchers’ and its success in fostering mobility of researchers will career advancement if it remains unpublished (as is GHSHQGRQWKHDGMXVWPHQWRILQFHQWLYHVIRUWKHP LH RIWHQWKHFDVHEHFDXVHRIFRQƄGHQWLDOLW\DJUHHPHQWV recognition of mobility as a key performance indicator, or because its practical nature does not lend itself to regulatory reforms to assure continuing tenure and publication). At the same time, research universities academic promotion) and further support from are largely evaluated based on the number of students university management.

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The Talent Mobility ProgramVHWXSE\WKH67,SROLF\RIƄFHSURPRWHVWKHSDUWLFLSDWLRQRISXEOLFUHVHDUFKHUVLQLQGXVWULDO UHVHDUFKDQGDLPVWRPRELOL]HUHVHDUFKHUVSHU\HDUIURPLQVWLWXWLRQVWRVSHQG}SHUFHQWRIWKHLUWLPHLQLQGXVWU\ (identifying technological problems and conducting industrial research) for a maximum of two years. Researchers receive JUDQWVRUFRQVXOWLQJIHHVIURPWKHSDUWLFLSDWLQJƄUPV)LUPVUHLPEXUVHXQLYHUVLWLHVE\PDNLQJXVHRIWD[LQFHQWLYHV60(VDUH exempted from payment and are subsidized by MOST. Universities’ participation is uncertain, as the programme, currently in its pilot phase, is voluntary, and neither faculty members nor universities have a particular incentive to participate. The Researchers for Research in Industry (RRI), launched by TRF in 2011, provides scholarships for PhD students WRFRQGXFWUHVHDUFKLQƄUPVXQGHUWKHFRVXSHUYLVLRQRIXQLYHUVLW\SURIHVVRUVDQGLQGXVWU\SURIHVVLRQDOV7KHSURJUDPPH expects to involve 10,000 PhD students over a period of 10 years. In 2013, RRI granted scholarships to 300 PhD students. The programme targets researchers at the beginning of their careers who may be encouraged to opt for a career in the private sector, and it is therefore unclear to what extent it will promote mobility. Source: UNCTAD, based on interviews.

/LPLWHGFDSDFLWLHVIRUSURPRWLQJHQWUHSUHQHXU- Support for entrepreneurship has largely been driven VKLSDQGFRPPHUFLDOL]LQJUHVHDUFK by two public initiatives: the UBI programme supported E\ 2+(& DQG 167'$pV %XVLQHVV ,QFXEDWLRQ 'HVSLWHWKHVLJQLƄFDQWHIIRUWVPDGHLQWKHSDVW\HDUV &HQWUH ER[} ([FHSW LQ D OLPLWHG QXPEHU RI Thailand’s current capacity to promote entrepreneurship centres (mostly those in leading science parks and LQXQLYHUVLWLHVDQGUHVHDUFKLQVWLWXWLRQVLVLQVXIƄFLHQWWR research institutions), business incubators have not stimulate the emergence of a solid base of technology produced tangible results in terms of establishing new DQGNQRZOHGJHEDVHGƄUPV WHFKQRORJ\EDVHGƄUPVRUVSLQQLQJRXWUHVHDUFK 86 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

Supporting technological start-ups and spin-offs has of start-ups (particularly technology-based ones). not been a policy or an institutional priority in Thailand, Financial resources provided by UBI have been spread and the private sector has not participated in these too thin, and at times, due to programme rigidities, HIIRUWV 2+(&pV 8%, SURJUDPPH KDV QRW IRFXVHG KDYHEHHQVSHQWLQHIƄFLHQWO\ HJLQGXSOLFDWHWUDLQLQJ on technology-based start-ups; it usually provides general business support similar to that provided At the operational level, UBIs and technology licensing by other public programmes.23 This lack of strategic RIƄFHV DOVR H[SHULHQFH VLJQLƄFDQW GLIƄFXOWLHV LQ VXSSRUWLVFRXSOHGZLWKLQVXIƄFLHQWIUDJPHQWHGDQG recruiting and retaining managers with the necessary XQFHUWDLQƄQDQFLDOUHVRXUFHV7KHUHLVRIWHQDODFNRI skills and experience for promoting entrepreneurship XQGHUVWDQGLQJRIWKHULVN\QDWXUHDQGƄQDQFLDOQHHGV and for helping to commercialize research.

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NSTDA’s Business Incubation Centre, located in Thailand’s Science Park, has incubated 74 start-ups and VXSSRUWHGHVWDEOLVKHGFRPSDQLHVZLWKDWRWDORI}PLOOLRQEDKWDQQXDOUHYHQXH7KHFHQWUHVXSSRUWVVWDUWXSVVXFK as Flexoresearch (an R&D service provider for the pulp, paper, printing and packaging industries that has developed DQHQ]\PDWLFWHFKQRORJ\WRUHF\FOHWKHODPLQDWHGSDSHUZDVWHFRQWDLQHGLQPLONFDUWRQV DVZHOODVHVWDEOLVKHGƄUPV ZLWKQHZLQQRYDWLYHSURGXFWVVXFKDV.(((1 DELRUHPHGLDOƄUPWKDWKDVGHYHORSHGELRWHFKQRORJLFDOVROXWLRQVIRU wastewater treatment and waste management).

,Q2+(&ODXQFKHGLWV University Business Incubator (UBI) programme, to support incubators in public and SULYDWHXQLYHUVLWLHV7KHSURJUDPPHKDVH[SDQGHGUDSLGO\DQGWRGD\WKHUHDUHRYHU8%,V+RZHYHURIWKHVHRQO\ DUHFRQVLGHUHGVXFFHVVIXO7KHH[SDQVLRQRI8%,VKDVQRWEHHQPDWFKHGZLWKLQFUHDVHGIXQGLQJ2+(&FXUUHQWO\ DOORFDWHV}PLOOLRQEDKWSHU\HDUWRWKHSURJUDPPH'XULQJŸVWDUWXSVDQGVSLQRIIVZKLFKJHQHUDWHG UHYHQXHVDPRXQWLQJWR}PLOOLRQEDKWDQGFUHDWHGQHZMREVKDGEHHQLQFXEDWHG 7KHDYHUDJH8%,LQFXEDWHVƄYHQHZƄUPVD\HDUZLWKWKHVXSSRUWRIIRXURUƄYHVWDIIDQGLWRIIHUVEXVLQHVVDGYLFHDQG DFFHVVWRXQLYHUVLW\ODERUDWRULHVDQGH[SHUWV0RVWLQFXEDWHGƄUPVDUHLQYROYHGLQORZWHFKDFWLYLWLHVLQIRRGSURFHVVLQJ FRVPHWLFVDQG,&7)RUH[DPSOHDW\SLFDOVWDUWXSLVDVPDOOIRRGSURFHVVLQJƄUPWKDWPD\KDYHLQWURGXFHGDVOLJKWO\ LPSURYHGSURGXFWWRWKHORFDOPDUNHW,QOHDGLQJUHVHDUFKXQLYHUVLWLHVVWDUWXSVRUVSLQRIIVPD\FRPSULVHƄUPVRIIHULQJ PRUHWHFKQRORJ\LQWHQVLYHSURGXFWV)RUH[DPSOH2OL]DF7HFKQRORJLHVLVDQ5 'EDVHGƄUPWKDWFRPPHUFLDOL]HVDQ RUFKLG ELRHOLFLWRU ZKLFK PRGXODWHV VWUHVV DQG HQKDQFHV RUFKLG ƅRZHULQJ EDVHG RQ WKH FKLWLQFKLWRVDQ WHFKQRORJ\ platform developed at Chulalongkorn University. Local authorities and the private sector are not involved in these business incubation programmes. Two other recent or forthcoming incubation initiatives are the incubator centre established by TISTR in 2013 and the incubation programme to be established in NIA’s new Innovation Center.

Source: 81&7$'EDVHGRQDURXQGWDEOHGLVFXVVLRQZLWK8%,DQG7/2PDQDJHUVDQGRIƄFLDOV 0DUFK LQWHUYLHZV with stakeholders; Oxford Business Group, 2011; and Thailand Biotech Guide 2013, 2014.

Commercialization of R&D and IP management is funded research hinders the commercialization of still in the early stage in Thai universities. A number technology. of technology licensing offices (TLOs) have been In the short term, the potential for licensing technology set up recently in universities to facilitate and is largely constrained by the limited commercial value promote the patenting and commercialization of the IP held by the host institutions. Therefore, at RI UHVHDUFK ER[} +RZHYHUVR IDU WKH\ KDYH this stage, TLOs’ main priorities should be to create done little international patenting and licensing of greater awareness about IP among academia and technology. Universities have limited research that the private sector and promote coherent institutional can be patented, commercialized or transferred, IP policies. In addition, they should facilitate research largely because research is done in isolation from that responds to economic, social and market needs the private and social sectors. In addition, lack from the outset, and they should foster collaboration of awareness about IPR management issues with other economic and social actors, enabling the among university staff and unclear technology emergence of research that has greater commercial transfer regulations of IP derived from publicly potential and public relevance. CHAPTER IV : ENHANCING THE AVAILABILITY AND QUALITY OF HUMAN RESOURCES IN STI 87

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,Q2+(&ODXQFKHGWKH7HFKQRORJ\/LFHQVLQJ2IƄFH 7/2 SURJUDPPHDQGWRGD\XQLYHUVLWLHVKDYHVXFKRIƄFHV The programme has supported applications for 526 patents, 260 design patents and 340 petty patents, and licensing UHYHQXHVRI}PLOOLRQEDKW7/2VPDQDJHLQVWLWXWLRQDO,3QHJRWLDWHUHVHDUFKDJUHHPHQWVZLWKRXWVLGHSDUWQHUVDQG support the evaluation and patenting of inventions. They also raise awareness of IP issues, deliver training in this area and provide advice on institutional IP policy. The average TLO has only a few national patents and petty patents registered, whereas TLOs from larger research institutions may have several international patents registered. For example, Chulalongkorn University holds 400 domestic patents and petty patents, and 20 international patents and petty patents; and it has 70 licensing and technology transfer agreements, including in nanotechnologies and ICTs. The main challenges TLOs face are the limited number of IPRs owned by the institutions and their limited commercial YDOXHDODFNRIDZDUHQHVVRI,35VDPRQJVWDIIDQGGLIƄFXOWLHVLQUHFUXLWLQJPDQDJHUVIRU7/2VZLWKWKHDSSURSULDWH experience.

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CU MU KU KK CMU SUT PSU KMUTT Total

Year of establishment of TLO 1995 1998 1996 2006 2007 2007 2007 1995

1XPEHURIVWDII )7( HQJDJHGLQOLFHQVLQJ 4 .. .. 2 2.5 2 2.5 2 15 activities, business development and spin-offs

1XPEHURIVWDII )7( HQJDJHGLQSDWHQWƂOLQJ 6 .. 6 4 4.5 6 4 .. 30.5 and other technology transfer activities

/LFHQVLQJDJUHHPHQWV Ŷ 42 .. 19 .. .. 10 .. .. 71

5HYHQXHIURPOLFHQVLQJRXW PLOOLRQEDKW 19.5 .. 10.4 1.7 5.9 3.2 0.9 1.2 42.74 Ŷ

Number of invention disclosures 51 51

/RFDOXWLOLW\SDWHQWVŶ DSSOLHG 44/1 0/2 12/0 14/0 .. 17/0 21/0 14/0 122/3 JUDQWHG

&XPXODWLYHORFDOXWLOLW\SDWHQWV DSSOLHGJUDQWHG .. ../34 209/28 71/4 ../67 96/4 ../51 162/14 538/202

Notes: CU=Chulalongkorn Univ., MU=Mahidol Univ., KU=Kasetsart Univ., KK=Khon Kaen Univ., CMU= Chiang Mai Univ., SUT=Suranaree Univ. of Technology, PSU=Prince Songkla Univ., KMUTT = King Mongkut Univ. Technology Thonburi

Source: 81&7$'EDVHGRQDURXQGWDEOHGLVFXVVLRQZLWK8%,DQG7/2PDQDJHUVDQGRIƄFLDOV 0DUFK DQG Thanasukarn, 2013 (only in Thai).

/LPLWHGGHPDQGIURPWKHSULYDWHVHFWRU UHSRUW WKDW 60(V KDYH GLIƄFXOWLHV LGHQWLI\LQJ WKHLU WHFKQRORJLFDO QHHGV ZKLOH ODUJHU LQQRYDWLYH ƄUPV 7KDL ƄUPV KDYH QRW DSSURDFKHG XQLYHUVLWLHV DQG KDYH OLWWOH FRQƄGHQFH LQ XQLYHUVLWLHVp FDSDFLW\ WR research organizations for technological support respond to their research needs, and prefer setting because to some extent they have not been under up internal R&D units or acquiring technology SUHVVXUHWRLQQRYDWH 'RQHUHWDO 1LQHW\}SHU cent of Thai SMEs do not carry out any innovation equipment/services from abroad. Moreover, in activities (OECD, 2011). Another reason for not PDQ\ VHFWRUV ƄUPV ƄQG LW GLIƄFXOW WR FROODERUDWH demanding technological support is that SMEs DPRQJ WKHPVHOYHV DQG WR ZRUN MRLQWO\ WR XSJUDGH often have limited internal capacity (both in terms their technological competences (see, for example, RI SHUVRQQHO DQG ƄQDQFLDO UHVRXUFHV WR XQGHUWDNH %ULPEOH DQG 'RQHU} &KXQKDYXWKL\DQRQ DQG collaborative research programmes. Stakeholders Intarakumnerd, 2014). 88 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

,QDGHTXDWH FRRUGLQDWLRQ EHWZHHQ UHVHDUFK a number of industries (notably the hard-disk drive education and industry (%R[} ), automotive and food industries), TNCs’ investments have contributed to upgrading local Inadequate coordination between research, education technological capabilities through the training of human and industry is hampering the ability of the education UHVRXUFHV DQG FROODERUDWLYH 5 ' SURMHFWV %XW )', and training system to respond to industry needs. could contribute more to enhancing the technological Ministries and their departments tend to operate base of the economy if linkages between foreign and in silos, with little coordination. Policy coordination GRPHVWLFƄUPVZHUHWREHIRVWHUHG is often limited to consultation with stakeholders in multiple forums without clear action plans24 and /LQNDJHVEHWZHHQ71&VDQGGRPHVWLFƄUPVFDQEH bolstered by identifying local enterprises that have control systems. Informal coordination can work 25 the potential to become suppliers to or partners ZHOOWRRUJDQL]HVSHFLƄFFROODERUDWLRQLQ67, but at with foreign investors and through the promotion higher levels of policymaking more formal coordination of networks. Another means of fostering linkages mechanisms are required. Multiple players (Doner 26 is through incentives and requirements (e.g. local et al., 2013), notably the Bureau of the Budget , content requirements or favouring the establishment can veto proposals. And a lack of effective policy monitoring, evaluation and control mechanisms also RIMRLQWYHQWXUHVZLWKORFDOƄUPV IRU71&VWRHGXFDWH hinders policy coordination. DQG EXLOG ORFDO ƄUPVp FDSDFLWLHV WR EHFRPH WKHLU suppliers. Lessons can be learned from the state Enhanced coordinated efforts are required to foster government of Penang, for example. Penang is a curricula design and teaching methods that respond to PDMRU HOHFWULFDO DQG HOHFWURQLFV PDQXIDFWXULQJ KXE LQGXVWU\QHHGVDQGWUDLQVXIƄFLHQWQXPEHUVRIVWXGHQWV in Malaysia, and its government has successfully LQ6 7ƄHOGVDQGLQUHOHYDQWVNLOOVDQGZKLFKHQFRXUDJH promoted business linkages among local and the private sector to effectively participate in appropriate LQWHUQDWLRQDO ƄUPV WKURXJK VWURQJ QHWZRUNLQJ DQG training programmes. A robust labour market information collaboration. Through coordinated policies the V\VWHP WKDW LQIRUPV +5' SROLFLHV HGXFDWLRQDO government has played a pivotal role in targeting institutions and students on current and future trends FDI willing to create linkages, promoting strong LVQHHGHGLQFRQMXQFWLRQZLWKLQFHQWLYHVIRUHGXFDWLRQDO networking and collaboration between companies LQVWLWXWLRQV WR DGMXVW WKHLU FRXUVHV DFFRUGLQJO\ 7KH and the local government, responding to TNCs’ Ministry of Labour surveys labour market needs,27 but demands for a skilled workforce (by facilitating the WKH V\VWHP LV QRW VXIƄFLHQWO\ GHYHORSHG WR DQWLFLSDWH establishment of the Penang Skills Development labour market trends, identify which labour skills are Centre) and in upgrading local SMEs through public- QHHGHGLQVXIƄFLHQWGHWDLODQGFOHDUO\FRPPXQLFDWHWKDW private partnerships (UNCTAD, 2010b). information to the relevant stakeholders.28 0D[LPL]LQJLQWHUQDWLRQDODQG 3ROLF\ FRRUGLQDWLRQ LV FUXFLDO WR SURPRWH HIƄFLHQFLHV UHJLRQDOFROODERUDWLRQDQGPRELOLW\ DQG VSLOORYHUV LQ QDWLRQDO VWUDWHJLF SURMHFWV )RU for HRD example, the railway infrastructure proposal drafted by the Ministry of Transport in June 2014 does not D ,QWHUQDWLRQDOFROODERUDWLRQDQGPRELOLW\ LQFOXGHDQ+5'SODQZKLFKWKH0LQLVWU\RI7UDQVSRUW believes is beyond its mandate. Efforts to develop Thailand has a long-standing tradition of international +5 LQ WKLV DUHD DUH WDNLQJ SODFH LQ SDUDOOHO WKURXJK collaboration on STI training and research at more informal mechanisms. As a consequence, no governmental and academic levels. It is also DGHTXDWH ƄQDQFLDO UHVRXUFHV KDYH EHHQ DOORFDWHG worth noting Thailand’s recent efforts, such as the IRU +5' DQG SULRULWLHV KDYH QRW EHHQ DGHTXDWHO\ International Research Network (Box 4.3), to ensure signalled for training and research institutions to make WKDWMRLQWLQWHUQDWLRQDOFROODERUDWLRQLQUHVHDUFKLVGRQH investments in advance. in areas of interest to Thailand. /HYHUDJLQJPRUH+5'DQG International collaboration in STI policy design WHFKQRORJ\WUDQVIHUIURP71&V and evaluation is one area that requires attention. Currently, no international STI experts participate In order to improve the technological base of the Thai in the evaluation of national institutional and STI economy, FDI could be exploited more effectively. In programmes except in the context of bilateral and CHAPTER IV : ENHANCING THE AVAILABILITY AND QUALITY OF HUMAN RESOURCES IN STI 89

multilateral programmes. International experts can opportunities for providing educational services to help raise the quality of research, training and other international students. A number of programmes and STI programmes as well as their visibility, and, as LQVWUXPHQWVKDYHEHHQSXWLQSODFHWRIDFLOLWDWH+5' outsiders, they can provide independent and impartial and mobility. For example, the ASEAN International assessments of STI programmes. Mobility for Students programme promotes undergraduate student mobility on a small scale,33 $WWUDFWLQJKXPDQFDSLWDOWRFRQGXFWVFLHQWLƄFUHVHDUFK eight ASEAN Mutual Recognition Agreements and training in Thailand, as well as to address local IDFLOLWDWHWKHPRYHPHQWDQGHPSOR\PHQWRITXDOLƄHG ƄUPVp QHHGV IRU KLJKO\ TXDOLƄHG VWDII DOVR GHVHUYHV DQG FHUWLƄHG SHUVRQQHO EHWZHHQ $6($1 PHPEHU further attention. Foreign talent is an invaluable source 34 States, DQG DQ $6($1 TXDOLƄFDWLRQ UHFRJQLWLRQ of knowledge and ideas, and can provide access to IUDPHZRUN LV WR EH ƄQDOL]HG E\ 7KH $6($1 valuable networks and resources. Current regulations Committee on Science and Technology is also concerning the recruitment of foreign workers29 are promoting regional collaboration (e.g. through the OLPLWLQJ WKH VWDIƄQJ RI KLJKO\ VNLOOHG SHRSOH 6XFK ASEAN University Network). More recently, Thailand JHQHUDOUHVWULFWLRQVVKRXOGEHPDGHPRUHƅH[LEOHWR has promoted preliminary discussions on what enable the recruitment of foreigners with the skills could be a programme for ASEAN Talent Mobility.35 QHHGHG E\ ƄUPV DQG RUJDQL]DWLRQV LQ 7KDLODQG These programmes are still too small or recent to LQFOXGLQJWKRVHƄUPVZLWKQRq%XUHDXRI,QYHVWPHQW KDYHKDGDVLJQLƄFDQWLPSDFW7KHPDMRUREVWDFOHV SURPRWHG FHUWLƄFDWHr 0RUHRYHU PRVW LQQRYDWLYH to regional collaboration and mobility are language countries have introduced programmes that attract EDUULHUV OLPLWHG ƄQDQFLDO UHVRXUFHV WR VXSSRUW international talent to expand their workforce, student mobility and research collaboration, and the conduct world-class research, and even to promote lack of commitment by universities in the absence of an entrepreneurship culture, skills and assets. For ƄQDQFLDOUHVRXUFHV instance, Singapore has a comprehensive policy and supporting programmes30 to attract talent into the country. Chile’s Start-Up programme31 encourages C. CONCLUSIONS AND international entrepreneurs to establish their start-ups RECOMMENDATIONS in the country and help promote an entrepreneurial National education has made considerable strides culture there. The programme provides local and as a result of proactive public policies. Thailand’s foreign entrepreneurs with $40,000 of equity-free seed achievements in increasing enrolment rates in FDSLWDODQGDRQH\HDUYLVDWRGHYHORSWKHLUSURMHFWV secondary and tertiary education are outstanding. for six months, along with assistance in accessing +RZHYHUWREHFRPHDQLQQRYDWLRQEDVHGHFRQRP\ KXPDQDQGƄQDQFLDOFDSLWDOQHWZRUNV it needs to increase its STI-related human resources, Language can still be a barrier to further international and, most importantly, ensure that they possess the collaboration and mobility, despite efforts32 to promote technical, entrepreneurial and innovative skills required language training. not only at present but also in the future.

E 5HJLRQDO LQWHJUDWLRQ DQG FROODERUDWLRQ Thailand faces increasing demands for STI-related within ASEAN on training and research human resources, both at the vocational and higher levels of education. The number of R&D personnel per population, particularly in the private sector, is relatively Collaboration within ASEAN on training and R&D has been limited so far. To start with, ASEAN countries ORZ ,Q DGGLWLRQ WKHUH DUH PDMRU VNLOOV VKRUWDJHV LQ are at different stages of technological development, FHUWDLQ ƄHOGV DQG LQGXVWULHV LQFOXGLQJ LQ WKH ODUJHU high-tech sectors, in smaller high-tech sectors that and they face shortages of R&D personnel. Thus, countries such as Thailand traditionally cooperate with DUHVHWWRH[SDQGDQGLQQHZLQIUDVWUXFWXUHSURMHFWV (water management and railways), as well as a institutions in Europe, Japan and the United States. shortage of researchers and lecturers in agriculture. The ASEAN Economic Community scheduled to Other much-needed cross-sectoral skills, in particular be established in 2015 may provide Thailand with innovation and entrepreneurship (e.g. to facilitate the wider pools of trained human resources (but also development of businesses in rural areas and the with greater risks of a brain drain), further prospects HPHUJHQFH RI PRUH WHFKQRORJ\LQWHQVLYH ƄUPV DUH for STI cooperation and learning, and greater also lacking. 90 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

At the same time, Thailand needs to improve the need to be scaled up and combined with a review quality of STI education and training at all levels. Quality of the incentives (remuneration, budget allocations, education has been concentrated mainly in Bangkok recognition) and processes (skills mapping, planning, and the large discrepancies in quality among teaching monitoring and evaluation) needed to systematically institutions needs to be addressed. A key means of enhance the quality and relevance of STI education for raising education quality is by holding educational DQG WUDLQLQJ 7R WDFNOH WKH ZHDNQHVVHV LGHQWLƄHG D institutions and stakeholders accountable. Current number of strategic actions are recommended below, TXDOLW\ DVVXUDQFH SURFHVVHV KDYH EHHQ LQVXIƄFLHQW in line with those suggested for strengthening the to make underperforming educational institutions overall national innovation system. accountable and to foster collaboration with industry. Moreover, they divert attention away from improving Moving leaders and institutions out of their comfort quality. zone Existing vocational education is no longer recognized It will be imperative to create awareness of the pressing DVDPDMRUPHFKDQLVPIRUWUDLQLQJVNLOOHGZRUNHUVDQG need for improving the quality and relevance of STI UHTXLUHVDPDMRURYHUKDXO$UHYLYDORI79(7ZLOOUHTXLUH education and training, in particular for revamping the retraining of current staff and the hiring of more vocational education, upgrading entrepreneurship TXDOLƄHGWHDFKHUVDVZHOODVWKHSURYLVLRQRIDGHTXDWH and innovation skills, and strengthening industry’s incentives that reward good teaching performance. In participation in training and research activities. addition, teaching methods, materials and equipment To achieve the level of transformation required in STI will need to be updated. education and training, actors need to move out of $PDMRUUHDVRQIRUWKHVKRUWDJHRIWKH67,VNLOOVUHTXLUHG their comfort zone and make greater commitments. in Thailand is the lack of systematic interaction and Public agencies need to progress from sponsoring linkages between academia and industry that would SLORW HGXFDWLRQDO SURMHFWV WR SURPRWLQJ VWUDWHJLF HQDEOHDQLGHQWLƄFDWLRQRILQGXVWU\pVVNLOOUHTXLUHPHQWV changes and the wider use of relevant models. Firms the upgrading of university lecturers’ and researchers’ should participate more in teaching and research skills and the design of appropriate curricula. activities. Research organizations, as institutions and Researchers and their institutions have few incentives not only individual researchers, ought to reach out and to collaborate with industry. In turn, industries’ demand FROODERUDWHZLWKƄUPVIDUPHUVDQGXVHUV for technological services or research from universities has been sparse. Inadequate policy coordination Mobilizing for common goals and aspirations between research, education and industry is also The Government of Thailand should work together hindering such linkages. with industry, education leaders, policymakers, The improvement of human resources in STI will largely teachers and trainers to establish and implement a depend on the ability of the country’s policymakers common agenda on human resources development to tackle serious weaknesses throughout education in STI. This requires long-term commitment and V\VWHPŸIURPSUHSULPDU\WRSRVWJUDGXDWHOHYHOV7KLV policy coordination built around shared goals, and will require extensive efforts and a holistic approach, VKRXOG LQFOXGH VSHFLƄF VKRUW PHGLXP DQG ORQJ including changes in entrenched perceptions in a WHUPREMHFWLYHVWREHDFKLHYHGZLWKLQVSHFLƄHGWLPH number of fundamental areas. First, the potential for frames. It should designate clear responsibilities, skills development and training of students from rural DFFRPSDQLHG E\ VXIƄFLHQW ƄQDQFLDO UHVRXUFHV DQG areas cannot be underestimated. Second, vocational institutional commitments. and agricultural education as well as teaching careers must be fully recognized and respected. Finally, the Strengthening STI governance and management development of knowledge, competencies, skills Take appropriate measures with regard to and values – rather than the obtaining of diplomas – underperforming educational institutions and actors deserve to be accorded greater value. LGHQWLƄHG WKURXJK WKH HVWDEOLVKHG TXDOLW\ DVVXUDQFH Thailand has made considerable efforts to support processes. Quality assurance processes should be human resources development in STI, carrying DGMXVWHGWRUHZDUGLQVWLWXWLRQDOFROODERUDWLRQZLWKWKH out multiple programmes, often based on good private sector. Over time, the performance standards LQWHUQDWLRQDO SUDFWLFHV +RZHYHU WKRVH HIIRUWV QRZ for all higher education institutions should be raised. CHAPTER IV : ENHANCING THE AVAILABILITY AND QUALITY OF HUMAN RESOURCES IN STI 91

Budget allocations should increasingly be linked to The mandates and management capabilities of UBIs performance in a manner that provides adequate and TLOs should be strengthened, for example by incentives for quality enhancement and that takes into establishing business like approaches and structures account the varying purposes and roles of different and ensuring these are managed by staff with strong educational institutions. experience in or with the private sector. It would also be advisable to conduct a review of the Programmes that expose students, teachers and quality and relevance of skills development training, academics to working conditions in the business and introduce mechanisms to ensure that employee sector, including internships, dual vocational WUDLQLQJSURYLGHGE\ƄUPVLVUHOHYDQW training, mobility programmes for researchers and combined studies, should be reinforced and scaled Policy coordination is vital to ensure that education and training respond to industries’ needs and XS VLJQLƄFDQWO\ 5HVWULFWLRQV RQ PRELOLW\ LQ FXUUHQW public scholarship programmes should be relaxed. promotes strategic spillovers. The formal participation Successful cooperative educational programmes (e.g. of a wide range of stakeholders in policy design, the Mechai Pattana School, the pilot work integrated implementation and evaluation would strengthen learning programme, and the engineering practice policy coordination. It may be necessary to strengthen schools at KMUTT) should be expanded to reach information and analysis of labour market needs D FULWLFDO PDVV RI EHQHƄFLDULHV 0DLQVWUHDP GXDO DQG WKH GLVVHPLQDWLRQ RI WKH ƄQGLQJV ZKLOH DOVR enhancing incentives for educational and training YRFDWLRQDOWUDLQLQJUHTXLUHVDPDMRURYHUKDXOLQFOXGLQJ institutions to better align their curricula, education XSJUDGLQJ WHDFKHUVp TXDOLƄFDWLRQV DQG WHDFKLQJ methods and resources. and training so as to equip students with the skills needed by industry. At the same time, to encourage Supporting decentralization institutional investment in teaching, research and infrastructure, greater certainty in budget allocations Most quality education and training is concentrated and clearer information about STI human resource in Bangkok. The development of STI-related human needs should be provided to educational institutions. resources beyond Bangkok should be supported )RUH[DPSOHWKHUDLOZD\PHJDSURMHFWVKRXOGLQFOXGH by expanding the number of schools that promote DSODQIRU+5' innovation and local development (e.g. the Mechai Pattana school), by further boosting regional science Improving resource management SDUNV WKURXJK VRXQG GHYHORSPHQW SODQV ƄQDQFHG with adequate resources, and by continuing to back Education and research budgets should be streamlined research networks such as centres of excellence WR SURYLGH VXIƄFLHQW UHVRXUFHV IRU WUDLQLQJ WHDFKHUV networks. on STI skills, for the development of STI teaching materials, and for supporting linkages with the private Expanding international connections VHFWRU7KHLQFOXVLRQRIVSHFLƄFEXGJHWDOORFDWLRQVDQG UHTXLUHPHQWVIRU+5'LQQDWLRQDOPHJDSURMHFWV HJ 7KDLODQG FRXOG OHYHUDJH PRUH +5' IURP 71&V E\ WKH UDLOZD\ SURMHFW DV QRWHG EHORZ ZRXOG VXSSRUW promoting business linkages between foreign and efforts to bridge the skills gaps and provide strategic GRPHVWLFƄUPV LQFOXGLQJLQFHQWLYHVDQGUHTXLUHPHQWV opportunities for industrial development. for TNCs to train and build the capacities of local ƄUPV DQG E\ HQFRXUDJLQJ 71&Vp LQYROYHPHQW LQ Linking innovation actors VHFWRUVSHFLƄFWUDLQLQJSURJUDPPHV Efforts should be made to promote effective interaction A programme to attract skilled workers from abroad and collaboration between academia and industry. WRFRPSHQVDWHIRUVSHFLƄFVNLOOVVKRUWDJHVDQGZLGHQ There is a greater incentive for such collaboration international connections should be considered. when evaluation of universities also includes assessing Thailand’s participation in international research their ability to collaborate with industry, and when networks would also be worth expanding, particularly researchers’ participation in industrial research and in those networks that address issues of national WKHSURYLVLRQRIDGYLVRU\VHUYLFHVWRƄUPVLVIRUPDOO\ interest. To enable further integration into international recognized and valued for the advancement of their teaching and research networks, the development of careers. A clearer IP policy for publicly funded research improved foreign language skills will require continued would also facilitate industry-academia collaboration. support. 92 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

International experts should be involved in the evaluation Prioritizing the agenda: Short-term perspectives and of STI programmes in order to provide an independent long-term developments assessment of policies and new learning opportunities. The development of human resources in STI requires Taking advantage of megaprojects long-term investment that may take time to yield results. To provide concrete results rapidly, public Considering practical needs and strategic action can start by introducing simple measures that RSSRUWXQLWLHVWKHUDLOZD\PHJDSURMHFWVKRXOGLGHQWLI\ do not require substantial resources or negotiation at an early stage, its main human resource needs IRU H[DPSOH DGMXVWLQJ SHUIRUPDQFH LQGLFDWRUV WR as well as the industrial areas with development value institutional and researchers’ collaboration with SRWHQWLDO ,W VKRXOG LQFOXGH VSHFLƄF EXGJHW OLQHV industry) or by scaling up good practices/programmes IRU +5' LQFOXGLQJ IRU WKH GHYHORSPHQW RI WUDLQLQJ that already exist. institutions). To encourage timely investments, it should provide clear indications to training and research On the other hand, to enable substantive and sustained institutions on its current and future human resource change, more extensive reforms will need to be requirements. Technology spillovers can be generated negotiated, agreed upon and carefully implemented, if technology-transfer considerations, including, local even if their impact will become apparent only in FRQWHQWSURYLVLRQVWKDWIDYRXUMRLQWYHQWXUHVZLWKORFDO the medium or long term. The more urgent reforms enterprises, and requirements for the training of local are an overhaul of TVET, building industry-university engineers and technicians, are made an integral part collaboration, and increasing education, research and of negotiations with international suppliers. industry policy coordination. CHAPTER IV : ENHANCING THE AVAILABILITY AND QUALITY OF HUMAN RESOURCES IN STI 93

NOTES

1 (QWUHSUHQHXULDODQGLQQRYDWLRQVNLOOVHQFRPSDVVDWWLWXGHV HJSHUVLVWHQFHQHWZRUNLQJVHOIFRQƄGHQFHFUHDWLYLW\ DVZHOODVHQDEOLQJVNLOOV HJEXVLQHVVSODQQLQJƄQDQFLDOOLWHUDF\DQGPDQDJHULDOVNLOOV

2 UNESCO UIS data at: http://data.uis.unesco.org/# (accessed 21 May 2014).

3 The OECD’s Programme of International Student Assessment (PISA) assesses the extent to which 15-year-old students have acquired key reading, mathematics, science and problem-solving knowledge and skills.

4 The Trends in International Maths and Science Study (TIMSS) reviews the extent to which pupils in 4th and 8th grades can understand and apply essential maths and science knowledge.

5 Data provided by Thailand Development Research Institute

6 %DVHGRQGDWDSURYLGHGE\WKH1DWLRQDO67,3ROLF\2IƄFH1RSXEOLFGDWDZHUHIRXQG5DMDEKDWXQLYHUVLWLHV DUH OLPLWHG DGPLVVLRQ XQLYHUVLWLHV WKDW PHUJHG IURP WKH LQWHJUDWLRQ RI WHDFKHU WUDLQLQJ FROOHJHV 5DMDPDQJDOD Universities are the result of merging technical and commercial colleges.

7 7KH ƄYH RIƄFHV DUH 2IƄFH RI WKH 3HUPDQHQW 6HFUHWDU\ ZKLFK DPRQJ RWKHUV RYHUVHHV SULYDWH HGXFDWLRQDO LQVWLWXWLRQVDQGQRQIRUPDODQGLQIRUPDOHGXFDWLRQ WKH2IƄFHRIWKH(GXFDWLRQ&RXQFLO UHVSRQVLEOHIRUQDWLRQDO HGXFDWLRQSROLF\IRUPXODWLRQDQGFRRUGLQDWLRQ WKH2IƄFHRI%DVLF(GXFDWLRQ&RPPLVVLRQ2+(&DQG29(&

8 8VXDOO\GRXEOHWKHQXPEHURIVWXG\\HDUVƄQDQFHGE\WKHVFKRODUVKLS

9 The nine national research universities are: KMUTT, Chiang Mai University, Chulalongkorn University, Mahidol University, Thammasat University, Kasetsart University, Khon Kaen University, Suranaree University of Technology and Prince of Songkla University.

10 6HH2+(&SUHVVUHOHDVH-XO\DWKWWSZZZQUXJRWK

11 7KHJRYHUQPHQWEXGJHWLVDSSURYHGRQDQDQQXDOEDVLVDQGWKHIXQGLQJIRUSXEOLFPXOWL\HDUUHVHDUFKSURMHFWV QHHGVWREHUHQHZHGDQQXDOO\HYHQLIWKHRYHUDOOEXGJHWIRUDSURMHFWKDVEHHQDSSURYHG

12 )RUIXUWKHUGHWDLOVVHHFKDSWHU}

13 1DWLRQDO6WDWLVWLFDO2IƄFHDWKWWSZHEQVRJRWKHQVWDWBWKHPHBVRFSRSKWP

14 The module on enhancing entrepreneurship education and skills development of the UNCTAD Entrepreneurship Policy Framework and Implementation Guidance provides policy guidance on how to promote entrepreneurship through education (see: http://unctad.org/en/Pages/DIAE/Entrepreneurship/EPF-3.aspx).

15 For discussions of this issue, see, for example, Tangkitvanich and Sasiwuttiwat, 2012; TDRI, 2013; Mounier and Tangchuang, 2010.

16 79(7TXDOLƄFDWLRQVDUHSRRUO\UHFRJQL]HGLQWKHZRUNSODFHGXHWRWKHKHWHURJHQHRXVTXDOLW\RI79(76WXGHQWVDOVR SHUFHLYHWHFKQLFDOMREVHQWDLOLQJKDUGZRUNDQGULVNDQGDUHQRWLQWHUHVWHGLQWKHPRUHWHFKQLFDORUSUDFWLFDOMREV

17 The admission criteria for general upper secondary education have been lowered, and higher education institutions are eager to increase student enrolments as their budget allocations depend on student headcount.

18 Vocational education receives a lower budget per student than general education. Technical colleges receive 25,042 baht per technical student, while public high schools receive 28,261 baht per secondary level student (TDRI, 2013).

19 The average budget for upper secondary TVET teachers is only 6,753 baht compared with 20,460 baht for basic education teachers (TDRI, 2013).

20 ,Q}SHUFHQWRIWHDFKHUVLQSXEOLF79(7FROOHJHVZHUHHPSOR\HGZLWKVKRUWWHUPFRQWUDFWVZKLFKE\WKH WLPHWKH\KDYHEHHQWUDLQHGLQDVSHFLƄFSRVLWLRQUHTXLUHWKHPWRPRYHWRDQRWKHUSRVLWLRQ

21 For example, the Institute for Promotion of Teaching Science and Technology (IPST) and a new teacher development programme where teachers spend six months working in industry.

22 $FFRUGLQJWR+XDQJ ƄUPVDUHSDUWLFLSDWLQJ

23 Such as the New Entrepreneur Creation program of the Department of Industry Promotion, Ministry of Industry.

24 The National STI Policy and Plan has not provided an effective road map for action, in part because it is too broad. 94 SCIENCE, TECHNOLOGY AND INNOVATION POLICY REVIEW - THAILAND

25 )RUH[DPSOHLQWKHƄHOGRIELRPHGLFDOHQJLQHHULQJH[SHUWVIURPHLJKWXQLYHUVLWLHVRIIHULQJELRPHGLFDOHQJLQHHULQJ programmes work together with industry to determine an action plan and develop PhD programmes.

26 The Bureau of the Budget does not participate in policy discussions but has a large impact through budget allocations.

27 See: http://manpower.mol.go.th/.

28 A number of the education stakeholders interviewed were not aware of the results of surveys on labour market needs.

29 For instance, an employer must hire four Thai employees in order to employ one foreigner (Order of Immigration 2IƄFH1R DQGƄUPVPXVWKDYHDIXOO\SDLGUHJLVWHUHGFDSLWDORI}PLOOLRQEDKW GDWDSURYLGHGE\7'5,

30 Contact Singapore, at: www.contactsingapore.sg.

31 See: www.startupchile.org.

32 For example, 2012 was Thailand’s Year of English Speaking. In 2014, the Ministry of Education decided to start implementing the Common European Framework of Reference for Languages in some schools.

33 From 2010 to 2013, only 134 students from S&T disciplines studied abroad or came to study in Thailand.

34 They concern engineers, nurses, architects, surveyors, tourism professionals, dentists, accounting services, and medical practitioners.

35 $ƄUVW$6($17DOHQW0RELOLW\:RUNVKRSWRRNSODFHRQŸ0DUFK REFERENCES 95

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