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Government policies for promoting open innovation and international cooperation on account of business’s approach Thailand’s Green and Inclusive Innovation Policy Dr. Nares Damrongchai nares@sti.or.th APEC/ISTWG Innovation Policy Dialogue Westin St. Francis Hotel, California East Sunday, 18 Sep 2011
Thailand At a Glance Thailand is the world's 50th largest country in terms of total area (slightly larger than Spain) The 21st most-populous country, with approximately 67 million people.  About 75% of the population is ethnically Thai, 14% is of Chinese origin, and 3% is ethnically Malay;the rest belong to minority groups including Mons, Khmers and various hill tribes.  Official language is Thai.  Primary religion is Buddhism, which is practiced by around 95% of all Thais. Thailand has a GDP worth US$264 billion and per capita GDP of US$3,845 (2009). Economic sector by GDP: Agriculture (9%) 	Industry (39%)  Service (52%) Dr. Nares Damrongchai @2010 Please do not circulate outside APEC ISTWG 2
Green Innovation Concept Policy to encourage innovation in … Green consumption Higher efficiency on the consumers’ side Green industry (production) Bio-based industry (petrochemical etc.) Services and Tourism with environmental awareness Environment protection and utilization R&D in biodiversity Water management
Inclusive Innovation Concept: A move from a traditional approach to science and technology policy to a broader system of innovation policy STI policy should be inclusive that is intended to drive research, development and commercialization (R,D,&C) Capability building and on the interactions between the different organizations responsible for the creation, acquisition and use of knowledge for innovation. Improve  innovative capacity of  the poor people,  to empower  them such  that they are the subject and part of the innovation process and not a mere object
Key Government PoliciesAs announced on 24 August 2011 Reorganize national research and innovation system, with 2% R&D intensity target. One tablet per child Public-private co-investment and partnership, especially for R&D and technology transfer ,[object Object]
Encourage direct investment in high value added and environmental friendly industries, with technology transfer
New cities, with improved physical and legal infrastructure
Fund for SMEs entrepreneurs (1 billion baht) and incubators in educational institutes
Lowering company revenue tax,[object Object]
Two important mechanisms Research and innovation system Public-private partnership
Research and innovation system Generation, management, and dissemination of new knowledge at all levels Overall 2% R&D out of GDP National Research Councils (or NIH) style management system with holistic approach in budgeting. Agriculture Health  National research infrastructures principle Management and Investment
Thailand --- 10-year Plan
Target by 2016 1 % 15:10,000 30:70 Note:In 2007 R&D Exp = 18,225 MB  R&D Exp : Gov : Private =10,935:7,290 MB 	 R&D Personnel  = 42,624 (man-year) Source: STI (2011)
Human resource Emphasis on high level Industrial MSc, PhD “mobility fund” to support sabbatical leave from state universities to work in companies 15 research personnel / 10,000 by 2016 Overseas researchers / expats Tax deduction or exemption

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Thailand’s green and inclusive innovation policy

  • 1. Government policies for promoting open innovation and international cooperation on account of business’s approach Thailand’s Green and Inclusive Innovation Policy Dr. Nares Damrongchai nares@sti.or.th APEC/ISTWG Innovation Policy Dialogue Westin St. Francis Hotel, California East Sunday, 18 Sep 2011
  • 2. Thailand At a Glance Thailand is the world's 50th largest country in terms of total area (slightly larger than Spain) The 21st most-populous country, with approximately 67 million people. About 75% of the population is ethnically Thai, 14% is of Chinese origin, and 3% is ethnically Malay;the rest belong to minority groups including Mons, Khmers and various hill tribes. Official language is Thai. Primary religion is Buddhism, which is practiced by around 95% of all Thais. Thailand has a GDP worth US$264 billion and per capita GDP of US$3,845 (2009). Economic sector by GDP: Agriculture (9%) Industry (39%) Service (52%) Dr. Nares Damrongchai @2010 Please do not circulate outside APEC ISTWG 2
  • 3.
  • 4. Green Innovation Concept Policy to encourage innovation in … Green consumption Higher efficiency on the consumers’ side Green industry (production) Bio-based industry (petrochemical etc.) Services and Tourism with environmental awareness Environment protection and utilization R&D in biodiversity Water management
  • 5. Inclusive Innovation Concept: A move from a traditional approach to science and technology policy to a broader system of innovation policy STI policy should be inclusive that is intended to drive research, development and commercialization (R,D,&C) Capability building and on the interactions between the different organizations responsible for the creation, acquisition and use of knowledge for innovation. Improve innovative capacity of the poor people, to empower them such that they are the subject and part of the innovation process and not a mere object
  • 6.
  • 7. Encourage direct investment in high value added and environmental friendly industries, with technology transfer
  • 8. New cities, with improved physical and legal infrastructure
  • 9. Fund for SMEs entrepreneurs (1 billion baht) and incubators in educational institutes
  • 10.
  • 11. Two important mechanisms Research and innovation system Public-private partnership
  • 12. Research and innovation system Generation, management, and dissemination of new knowledge at all levels Overall 2% R&D out of GDP National Research Councils (or NIH) style management system with holistic approach in budgeting. Agriculture Health National research infrastructures principle Management and Investment
  • 13.
  • 15. Target by 2016 1 % 15:10,000 30:70 Note:In 2007 R&D Exp = 18,225 MB  R&D Exp : Gov : Private =10,935:7,290 MB  R&D Personnel = 42,624 (man-year) Source: STI (2011)
  • 16. Human resource Emphasis on high level Industrial MSc, PhD “mobility fund” to support sabbatical leave from state universities to work in companies 15 research personnel / 10,000 by 2016 Overseas researchers / expats Tax deduction or exemption
  • 17.
  • 19.
  • 21.
  • 24. Direct PPP Dr. Nares Damrongchai nares@sti.or.th APEC/ISTWG Innovation Policy Dialogue Westin St. Francis Hotel, California East Sunday, 18 Sep 2011
  • 25. Krabi Initiative 2010:Science Technology and Innovation (STI) for a Competitive , Sustainable and Inclusive ASEAN ASEAN 2015 – Vision of ASEAN Leaders Rationale Roles of STI – A Balance between Competitiveness and Human Development (People-oriented STI) Reinventing ASEAN Scientific Community for a Meaningful Delivery of STI Agenda in ASEAN ASEAN Innovation for Global Market Green Technology Digital Economy, New Media & Social Network Food Security Thematic Tracks Science and Innovation for Life Biodiversity for Health & Wealth Water Management Energy Security Public-Private Partnership Platform STI for Green Society Bottom-of-the -Pyramid (BOP) Focus Youth-focused Innovation STI Enculturation Paradigm Shifts Organisational restructure for a meaningful delivery of STI agenda in ASEAN Develop mechanisms to pursue partnerships and cooperation with other stakeholders in STI Courses of Action Enhance ASEAN Plan of Action on S&T for 2012-2015 and leverage the recommendations of the Krabi Retreat for development of future APAST beyond 2015 Implement monitoring and evaluation mechanism for the implementation of STI thematic tracks Source: National Science Technology and Innovation Policy Office - Thailand, December 2010

Editor's Notes

  1. Green consumptionOne tablet is also greenTourism with environmental awareness (miracle thailand year)
  2. One tablet per childStarting from this education year with grade 1 students in pilot schools, pre-installed with contents (text books) and free wireless internet in schools.
  3. It is already in the new Thai government's policy statement delivered to the Parliament on 24 August 2011, that Thailand has set the target to spend 2% of its GDP in research and development, and roughly 70% of this amount will come from the private sector in Thailand. We have included a more detailed S&T investment plan in the most recent draft of our National Economic and Social Development Plan, to be officially announced next month as our 11th five-year development plan.I am aware that 2% is not a high figure from advanced country’s standard, but for Thailand this will be a big leap from its current 0.2%. Significant investment will also be made in the development of capable human resources especially in R&D, and key infrastructures such as science and innovation parks, both public and private owned, centers of excellence, and testing facilities.Among the sectors that we will invest our R&D into, the energy sector is one of the most important targets. We give particular emphasis on the development and dissemination of biomass and biofuel technologies. As the first generation of these technologies are already being used and becoming widespread, we are heading for the second and third generation of biofuels produced from lignocellulose and algae.We also have plans to upgrade the existing power generation and distribution system to become “smart grid”, which will increase the capacity to use many different sources from renewable energy in a reliable manner. Smart grid is a system that is enabled by the combination of very many different technologies, many of which are still far from maturity. We intend to work with Japan in the development and testing of smart grid technology and look to its eventual deployment in the near future.Biodiversity preservation and utilization is another area that we will invest in, with our best effort in compliance with the Nagoya Protocol. Plans are now being made to
  4. Thailand has very many skilled human resources in science and technology. However, we seem to never being able to keep up with the demand for more researchers and technical staff, especially from the local and foreign companies who are establishing their research centers in Thailand. The signal is strong – we need more and more S&T workforce in the private sector.The government is putting efforts into creating more skilled science and technology personnel in the private sector, by various measures and incentives. For example, we are about to put in place a program that encourages private companies to accept Masters and PhD students to conduct research in their companies while trying to complete their degree, with some minimal support. The students thus graduated will have experience working with the private sector and likely to continue working with companies to conduct practical researches. We call this program “Industrial MSc and PhD”.On the other hand, researchers and university lecturers who are already working in science and technology in national research labs and universities will have more freedom to move and work with private companies for a period of time while retaining their position in the government or university. This we call it “Internship to Industry”.  enhanced by “mobility fund”Realizing that local talents are not enough to achieve our ambitious goal, we are now putting in place some inducive measures for foreign scientists to work in Thailand, including tax exemption or reduction. From now on Thailand will not only be seen as a vacation destination, but also an attractive workplace for science and technology talents.
  5. As emphasized before, the government alone can do little to achieve all these ambitious maneuvers without support from the industry. Therefore the public-private partnership (PPP) model is increasingly seen as an important mechanism to achieve excellence in science and technology, particularly in the building of larger scale infrastructure for S&T.In the past our legal environment was not friendly for this type of cooperation. Within the past year or two, the situation has changed dramatically. With the promulgation of a new law, currently in its draft, that will solve the problems of unclear governing framework, fragmented authorities, time-consuming procedure, lack of institutional supports and risk allocation rules. These improvements are being incorporated into the Bill on Private Participation in the State Undertaking, which is to replace a similar law enacted in 1992."Ladies and gentlemen, this is an important moment in time for us.It is anticipated that the new law, together with other incentives, will encourage more participation from the private sector, large and small companies, in building infrastructure and/or projects that will strengthen Thailand’s capacity in science, technology and innovation.
  6. ASEAN is a region with potential, with 10% of the world population and 2% of global GDP. Eyeing to achieve economic integration, or what we call the ASEAN Economic Community (AEC) in 2015, the region’s science and technology community has also been active in finding the way forward to increase scientific and technological capacity in the new integrated community.Last December, in a small resort town of Krabi in southern Thailand, our Ministry of Science and Technology has hosted a meeting of ASEAN’s Committee on Science and Technology. One unconventional thing about this meeting was that there was a side-meeting to discuss the future of the region’s science and technology, participated by the public, private, and academics from all member countries. The resulting “Krabi Initiative” was adopted readily by ASEAN’s Science Ministers as the framework for implementing its S&T related programs from 2015 and beyond.At its core, the Krabi Initiative identified 8 thematic tracks and 5 paradigm shifts such as bottom-of-the pyramid focus, STI for green society, and public-private partnership platform. It is a major upgrade in the thinking of how S&T will play role in the development of the region.