THAILAND SELF-ASSESSMENT REPORT & BEST PRACTICE

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1 THAILAND SELF-ASSESSMENT REPORT & BEST PRACTICE 1 Daegu Initiative First-Cycle Assessment Workshop June 7, 2010 Hong Kong, China Sonthawan Supattaraprateep National Science and Technology Development Agency

2 2 Outline of Presentation

3 Thailand Self-Assessment Report 3 Reported by Office of Small and Medium Promotion (OSMEP) Thailand

4 Self-Assessment Report 4 Area A: Developing human resources and technology through linkage between industry and educational and research institute Area B: Access to specialist assistance and advice Area C: Enhancing availability of capital to innovative SMEs Area D: Network and Clustering for innovative SMEs Area E: Establishing appropriate legal and regulatory structure Area F: Market consistent economic environment Area G: Developing methodologies for effectively measuring progress in the implementation of innovation programs for SMEs

5 5 Area A: Developing human resources and technology through linkage between industry and educational and research institute Related educational institutions, agencies in government and private sectors and R&D institutions collaborate with entrepreneurs in providing major science and IT services. Establishing Technology Licensing Office (TLO) can be relevant policy measure. Create the motivation for an entrepreneur, such as presenting the example of successful entrepreneurs, providing the business information, supporting the winner of business plan contest, offering tax waive for recently started business, and preparing to be an entrepreneur via SMEs incubation system and SMEs course development (SMEs University) Knowledge transfer for the existing SMEs entrepreneurs in the pattern of training, seminar and education, both knowledge of business management and specialized knowledge, namely intellectual property, export, security system for business in terms of occupational health, safety and labor law, skill and expertise development for entrepreneurs and employees in SMEs, to enhance their competency and expand the business

6 Area B: Access to specialist assistance and advice 6 In developing the database on macro economy for SMEs, academician and relevant parties can indicate the effectiveness of Thailand, including database program for calculating industrial dimension index, system for industrial IT and facility for entrepreneurs. The knowledge of business tax is also transferred to entrepreneurs via website. Develop a machine prototype under reverse engineering concept for SMEs establishment in production sector. Provide consultancy and business competitive diagnosis as well as improve the working process by using environmentally friendly technology and machine development, including the development of new product design and standard guarantee for SME entrepreneurs in production sector.

7 Area C: Enhancing availability of capital to innovative SMEs 7 In 2009, the collected information revealed that money institutions that specially offers SME loan are SME Bank, Government Savings Bank and Bank for Agriculture and Agricultural Co-operative, with the total loan amount of 59.5 billion baht for entrepreneurs. In 2009, billion-baht loan was approved. Regarding the loan guarantee service implemented by Small Industry Credit Guarantee Corporation (SICGC), the guarantee amount In 2009 was 30 billion baht. Currently, billion Baht was spent and 2,148 entrepreneurs were guaranteed.

8 Area D: Network and Clustering for innovative SMEs 8 Supportive strategy for SMEs in major regions includes promoting cluster linkage to create value chain in branches with strong potential and encouraging the assembly/linkage of community enterprise by strengthening the existing cluster that was developed in a certain level, promoting continuous cooperation, and encouraging the creation of new potential cluster, including the linkage between production and marketing as well as linkage with large enterprise or export in order that entrepreneurs can share the task by individual expertise, exchange the knowledge and experience, and create business opportunity. Cluster development: According to the study as the guideline for developing potential cluster in several regions countrywide, cluster in the targeted industries in nine areas of regions can be divided into: Rice Tourism Textile Rubber Fruit Auto parts Logistics Information Technology Dock and shipyard Ceramics Sa paper Jewelry Construction and decoration materials Furniture, including rubber wood furniture New entrepreneurs can prepare themselves via SME incubation system and course development in business conduct (SMEs University) and are provided with significant SMEs knowledge, such as management, export, good governance recognition, safety and occupational health as well as specialized knowledge in each field.

9 Area G: Developing methodologies for effectively measuring progress in the implementation of innovation programs for SMEs 9 Main information derives from National Science Technology and Innovation Policy Office (STI), National Science and Technology Development Agency (NSTDA), National Innovation Agency (NIA) and Thailand Institute of Scientific and Technological Research (TISTR). OSMEP is a planning unit on SMEs promotion in Thailand National Science Technology and Innovation Policy Office (STI) is the subordinate unit of Ministry of Science and Technology (MOST). It gathers data, presents policies as well as monitor and evaluate Thailand s and business sector s outcome of technology and innovation support Many projects are the international collaboration on technology and innovation, especially the one between foreign countries and educational institutions, Thailand Institute of Scientific and Technological Research (TISTR), National Science and Technology Development Agency (NSTDA), National Innovation Agency (NIA) and Software Industry Promotion Agency (SIPA).

10 THAILAND BEST PRACTICE : ITAP : INDUSTRIAL TECHNOLOGY ASSISTANCE PROGRAM Sonthawan Supattaraprateep National Science and Technology Development Agency

Organization structure 11 NSTDA: National

BIOTEC: National Center for Genetic Engineering

Materials Technology Center NECTEC: National

NANOTEC: National Nanotechnology Center TMC :

11 Organization structure 11 NSTDA: National Science and Technology Development Agency BIOTEC: National Center for Genetic Engineering and Biotechnology MTEC: National Metal and Materials Technology Center NECTEC: National Electronics and Computer Technology Center NANOTEC: National Nanotechnology Center TMC : Technology Management Center itap: Industrial Technology Assistance Program

Research Institutes Local Experts Consultants Knowledge Provider

12 itap Operation Model 12 ITAP : A Tool for Technology Transfer Linkage Knowledge to Enhancing Industry s Capability Overseas Experts Research Institutes Local Experts Consultants Knowledge Provider Universities TECHNOLOGY Finance Company s Needs Management Human Regulation Market

Technobusiness matching In-depth consultancy Enhance Linkages & network Industrial

13 Mechanisms of itap 13 Information services Feasibility study Seminar/ workshop Technology acquisition Diagnose problem & Meeting/ needs Brainstorm itap mechanism Technobusiness matching In-depth consultancy Enhance Linkages & network Industrial needs Like to other Private support consultancy Key mechanism supportive mechanism program

14 Where we want to go? 14 Intermediate Level Upgrade technology (design) Basic Level Day-to-Day problem solving (cost reduction, productivity) Advanced Level Create innovation (create new ideas) Labor Intensive Skill Intensive Technology Intensive R&D Intensive

15 Target Industry 15 Medical & Health Software Energy & Environment Automotive (plastic metal rubber chemical) Wood & Furniture Food & Agro-industry Labor Intensive Textile Skill Intensive Technology Intensive R&D Intensive

16 itap Profile 16 Industrial Technology Assistance Program : itap VISION To be the National technology solution support program for helping real sector by introducing & value creating of technology-based products, processes and services MISSION 1. To enhance & strengthen innovative competitiveness of real sector especially for SMEs and Industrial cluster 2. To support technology transfer both from Market to Lab and from Lab to Market 3. To operate as national networks with qualified, knowledgeable & experienced staff Core Value 1. Client focus 2. Excellence in Delivery 3. Networking

itap networks across Thailand 17 Central -NSTDA at Thailand Science Park (Pathumthani) North -NSTDA Northern Network (Chiangmai) South -Walailuk University (Nakorn Sri Thammarat) -Prince of Songkhla

17 itap networks across Thailand 17 Central -NSTDA at Thailand Science Park (Pathumthani) North -NSTDA Northern Network (Chiangmai) South -Walailuk University (Nakorn Sri Thammarat) -Prince of Songkhla University (Songkhla) Northeast -Suranaree University of Technology NN-NSTDA NSTDA KMUTT TGI KKU SUT MSU UMU (Nakorn Ratchasima) -Khon Kaen University (Khon Kaen) -Mahasarakarm University (Mahasarakarm) -Ubon Ratchathani University (Ubon Ratchathani ) West -King s Mongkut University of Technology Thonburi WU PSU (Bangkok) East -Thai-German Institute (chonburi) ITAP Head Quarter Existing ITAP networks

18 Key Performances of itap 18 support SME Contact SMEs ~15,000 companies Preliminary analysis 3,687 companies Develop techno. Technology Based Project (new) 2,377 projects Technology Acquisition 72 trip 986 companies HRD in SMEs Training/Seminar 585 courses 22,273 person As of March 31,

itap Performances & Resources 2006-2010 (Q2) 19 500 450 400 350 Technology Development Project No.

person 59 70 72 114 2548 2549 2550 Staff 81 93 95 300 250 200 150 174 261 100 75 50 70 60 40 52 100 50 25

19 itap Performances & Resources (Q2) Technology Development Project No. of Projects Million Baht Budget person Staff (2Q) (2Q) (2Q) As of Mar 31, 2010

20 itap Statistical Report (Q2) 20 Central, East, South, 1 31 Location West, Project Investment Northeas t, 219 Metropol itan, Northeas t, Mill. Baht SME investment itap support

itap Statistical Report 2006-2010 (Q2) 21 Packaging Energy & Environment 12 14 Industry Type of Project Trade & Services 19 Jewelry 21 Machine 113 Machinery 22 Electronics 23 Other 222 Construction

21 itap Statistical Report (Q2) 21 Packaging Energy & Environment Industry Type of Project Trade & Services 19 Jewelry 21 Machine 113 Machinery 22 Electronics 23 Other 222 Construction 25 Ceramics 28 Standard 285 Textile 35 Automotive Parts 49 Process 481 Software 93 Health 118 Product 671 Wood&Furniture 205 Others Food & Agroculture No. of project No. of project

22 Achievement: Innovative SMEs 22

23 Dream Difference Dare Do itap: We care, We share, We dare to do.

Development of Science Parks in Thailand

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