Amata takes lead in national R&D drive

“This can be a model to enable Thailand to exit the middle-income trap,” Somhathai Panichewa, chairwoman of Amata Group’s investment board, said yesterday at the annual conference of the Thailand Development Research Institute (TDRI).
This would be a pilot project for other industrial estates to boost research and development, she said.
Less than 5 per cent of R&D of foreign companies operating in Amata’s industrial estates in Thailand is done in the Kingdom. The foreign companies account for 80 per cent of more than 1,200 operators, 60 per cent of which come from Japan.
“The biggest obstacles are the shortage of talent, lack of grants and unattractive incentives from the government,” she said.
The science city is aimed at facilitating these activities. Located next to industrial plants, researchers can work closely with businesses.
Somhathai is negotiating for grants and incentives as well as other assistance from the Finance, Science and Technology, and Industry ministries.
According to Somhathai, public investment is now geared towards developing logistics along the border. The Eastern Seaboard, which generates about 40 per cent of gross domestic product, is ignored in the infrastructure investment plan.
It is time that the government review investment policies and conditions, she said. Schemes are needed to draw foreign companies, which could boost Thailand’s competitiveness against Malaysia or Singapore or even the United States.
Public investment should then be prioritised to go to the areas that would contribute the highest value to the economy.
To promote R&D among local companies, information and cheap funds with long grace periods should be made available. The government should also provide funding for small companies’ feasibility studies.
Somhathai’s proposal coincided with the TDRI’s findings that last year Thailand’s R&D expenses accounted for only 0.48 per cent of GDP and more than half was funded by the public sector.
 Researchers focus their efforts on academic research, which reduces the commercialisation rate.
The TDRI highlighted the need for a national matching agency to bridge researchers’ and businesses’ requirements, something that economies with scientific advancement like Germany and Taiwan have been doing.
Government funding goes to these agencies, while the institutes are also forced to work for the private sector to support themselves financially.
For example, in Germany, one-third of funding for the Fraunhofer research agency comes from the government, one-third from the private sector and one-third from other agencies, which open bidding for research assistance.
In Taiwan, the Industrial Technology Research Institute was set up specially to support the private sector. This boosted Taiwan’s R&D to 3 per cent of GDP, helping it to establish semiconductor and computer clusters.
Kirida Bhaopichitr, director of the TDRI’s International Research and Advisory Service, said the agency proposed for Thailand to enjoy full independence in operations.
While the government provides financial support and other assistance, management should be led by an experienced businessman who understands the private sector’s needs.
“Only this way can the private sector catch R&D trends. The issues at hand will be singled out, while research quality can be properly evaluated and the required skill sets can be satisfied,” she said.