Thailand reviews innovation scheme over six procurement concerns

Thailand's Cabinet has temporarily suspended the assessment and publication of new entries on the Thai Innovation List amid concerns about procurement transparency, limited competition and potential preferential treatment of certain suppliers.

The decision, taken on November 3 followed a proposal from the Budget Bureau to review the government programme after more than a decade of operation.

The Cabinet instructed the Budget Bureau, the National Innovation Agency (NIA) and the National Science and Technology Development Agency (NSTDA) to pause the listing process and review product eligibility, pricing procedures, registration criteria, benefits and the impact on businesses.

The Budget Bureau will coordinate the review with the Ministry of Higher Education, Science, Research and Innovation, the Ministry of Finance, the Ministry of Commerce and other relevant agencies.

The findings must be submitted to the Cabinet Secretariat within 60 days of formal notification of the resolution, after which they will be presented to the Cabinet for consideration.

Purpose of the Thai Innovation List

The Thai Innovation List was established to help domestically developed products and services gain access to government procurement opportunities.

Under the programme, state agencies can purchase registered innovations in accordance with specified procurement conditions and incentives.

Its objectives include encouraging research and development, creating demand for Thai innovations and using government purchasing power to help businesses expand.

Fewer than one in four listed innovations secured orders in 2024

Budget Bureau records show that the Thai Innovation List was introduced in January 2016. By September 2026, the government had published 115 editions covering 940 innovative products and services.

Of these:

• 396 had reached the end of their registration periods.
• 26 had undergone post-expiry reviews of their registration entitlements.
• Three had been removed from the register.
• This left 567 registered products and services.

The value of products and services sold through the programme increased more than 24-fold, from THB407.3 million in fiscal 2017 to THB9.98 billion in fiscal 2024.

However, the proportion of listed innovations receiving government orders fell over the same period. In fiscal 2017, government agencies purchased 30 of the 81 registered innovations, representing 37.04%.

By fiscal 2024, purchases covered 183 of the 759 registered products and services, equivalent to just 24.11%.

The figures indicate that although government spending on innovative products has expanded considerably, purchasing opportunities have remained concentrated among a relatively small proportion of registered innovations.

Six major concerns behind the review

The Budget Bureau identified six issues affecting the programme's effectiveness, transparency and competitiveness.

1. Unequal access to government contracts

Government procurement spending has increased, but purchases remain concentrated among a limited range of products.

This raises concerns about whether the programme is sufficiently effective in creating business opportunities across the wider innovation sector.

2. Overlapping procurement systems

Some categories of listed products overlap with existing government pricing or procurement frameworks. These include reference prices for medicines, medical equipment catalogues, digital service lists and agricultural input prices.

The overlap has raised questions about whether existing registration criteria and preferential benefits remain appropriate.

3. Difficulties verifying product costs

Innovative products often have specialised characteristics and cost structures that differ from those of conventional goods. Some products are manufactured by contractors or use imported materials, while costs may also include research, quality testing and distributor fees.

These factors make it difficult for government agencies to establish actual costs and compare prices with alternative products.

4. Potential monopolies and preferential treatment

Recommendations from the National Anti-Corruption Commission (NACC) and observations by parliamentary committees have highlighted risks of monopolistic practices and preferential treatment for particular suppliers.

Concerns also extend to inadequate monitoring and evaluation mechanisms, which may weaken oversight of government purchasing.

5. Compatibility with international procurement principles

The Budget Bureau also identified the need to assess the programme against international public procurement principles.

These include the transparency, fair competition, non-discrimination and market openness emphasised by the Organisation for Economic Co-operation and Development (OECD) and the World Trade Organization's Agreement on Government Procurement.

The assessment will consider whether existing incentives remain appropriate and deliver value for public spending.

6. Complaints from contractors and other stakeholders

Some construction contracts have included specifications requiring products registered on the Thai Innovation List. However, contractors who are neither authorised distributors nor representatives of the listed manufacturers have reported difficulties obtaining the required products.

Such restrictions can affect their ability to fulfil contractual obligations and complete projects on schedule.

Economic planning agency proposes stronger procurement monitoring

The Office of the National Economic and Social Development Council (NESDC) has recommended improving the monitoring and evaluation of the programme.

One proposal involves linking the Thai Innovation List with the government's electronic procurement system, known as e-GP. This would allow authorities to track actual purchases and determine how effectively government spending supports registered innovations.

The NESDC also recommended considering feedback from purchasing agencies and participating businesses when evaluating the programme. It also proposed reviewing procurement regulations to ensure government agencies can appropriately consider factors other than price when selecting products.

Together, these recommendations aim to assess the programme's effectiveness through actual market opportunities, business growth and value for money, rather than simply the number of products registered.

Earlier reforms targeted products lacking genuine innovation

The latest suspension follows an earlier Cabinet decision on October 14 to strengthen registration requirements.

The earlier decision responded to complaints that certain registered products might not qualify as genuine innovations or had become conventional products after initially being considered new.

The proposed improvements included:

• Clarifying the definitions of innovation and novelty.
• Preventing changes to packaging alone from qualifying products for registration.
• Reducing subjective discretion in eligibility assessments.
• Establishing an appeals mechanism.
• Publicly disclosing applicants' names and product information before approval.

Separately, responsibility for assessing the eligibility of innovative products and services was transferred from NSTDA to NIA on October 1. The Budget Bureau retained responsibility for price verification and publication of the official list.

The latest Cabinet resolution therefore introduces a broader review alongside reforms that were already under way.

Existing list not cancelled as businesses await clarity

The November 3 decision temporarily suspends consideration and publication of new entries under the Thai Innovation List programme. It does not constitute a cancellation of the entire scheme.

However, questions remain about how the suspension will affect existing registrations, associated benefits and applications still being assessed.

According to NIA, 102 applications for innovation registration submitted to NSTDA before October 1, are being transferred to NIA. The agency has indicated that it will monitor developments concerning the Cabinet's resolution and announce further guidance for businesses.

The review is intended to identify how Thailand can continue supporting domestic innovation while reducing monopoly risks and ensuring greater transparency in government procurement.