Private sector prodded on R&D, innovation

“Everything is in place but the missing component is the private sector, which has not yet stood up,” said the minister in his keynote speech at the Thailand Management Association conference yesterday.
He said students were still reluctance to take science and technology courses – not because they did not want to do so, but because there were a lack of career paths offered in the corporate sector in this area. The corporate sector has not paid enough attention to R&D and innovation activities, he added.
The government made the historic decision of including the Science and Technology Ministry as part of its economic team for the first time after Deputy Prime Minister Somkid Jatusripitak took charge of the economic affairs late last year.
Pichet said the government had come up with many promotional packages to promote R&D and innovation, but they were under-utilised, especially the 300 per cent tax deduction allowance for R&D and innovation expenditure.
Thailand’s R&D spending rose steadily from 0.6 per cent of gross domestic product last year to 0.7 per cent this year, and is projected at 0.8 per cent next year. However, the figures should be higher and more contribution from the private sector is needed to achieve that.
“Now we’re at an important crossroads where science and innovation have to become a tool to shift Thailand out of the middle-income trap,” he said. Pichet said the government would shortly unveil a “governance structure” for the national research system and was expected to officially inaugurate Food Innopolis, the first R&D and innovation hub in the country, this October.
The ministry is organising roadshows overseas to try and entice key multinational food players to join the planned food industry cluster as well as discussing with the Ministry of Finance a plan to exempt taxes for top-notch researchers who work at the Food Innopolis.
The government is considering setting up a Bt10 billion fund to support startups, and transfer a fund for small and medium-sized enterprises and an Asian Development Bank loan facility so they are under the responsibility of the Science Ministry.
To promote startups throughout the country, the Science and Technology Ministry will organise venues for startups to showcase their works in Chiang Mai, Khon Kaen, and Phuket provinces over the next few months.
“In Phuket we will hold it at a marina. Startups will pitch their works on a yacht. We hope CNN may be interested in covering it,” he said.
The minister is also talking with Chulalongkorn University’s new president Bundhit Eua-arporn over a plan to turn Siam Square into a “startup district.”
“[We are] considering how to create an atmosphere [so Siam Square] is not only a shopping place for Chula students,” he said.
Vasit Taepaisitphongse, president of Betagro, said the leading Thai agro-industry and food processing company invested in an R&D facility at Science Park 11 years ago and now spends of 0.4 per cent of its sales turnover on R&D.
It aims to increase the figure to 1 per cent by investing wisely.