R&D spending tipped to hit milestone
THAILAND’S investment in research and development (R&D) and related areas of technological advancement is this year expected to reach 1 per cent of gross domestic product (GDP) for the first time, an agency tasked with driving innovation said.
The National Science Technology and Innovation Policy Office (STI) projects investment for 2018 to swell to Bt160 billion, with 70 per cent from the private sector and the rest from the state sector.
Kitipong Promwong, secretary general of the STI, said that aside from direct R&D, the expected investment would cover science and technology, human resources development and innovation technology as part of stepped-up efforts to boost the country’s productivity and international competitiveness.
Kitipong said the factors driving the increased inflows include a range of incentives and privileges provided by the government. Among them, he said, are tax privileges from the Broad of Investment (BOI) that offer benefits to enterprises for between eight and 13 years and an incentive from the Revenue Department that makes some companies eligible for tax deductions of up to 300 per cent. This would apply to companies in robotics, healthcare, agriculture, biotechnology and the creative economy as part of the government’s Thailand 4.0 vision.
The STI chief also cited the growing startup scene and the huge investment from the government on infrastructure to support the development of economic zones, such as the Eastern Economic Corridor.
Other positives came from the country’s reputation for the ease of doing business and the increased mobility of skilled workers in the emerging growth sectors.
Kitipong also pointed to the government’s active stance in inviting businesses from key countries, such as Japan and China, to invest in the country.
"I think that companies engaged in telecommunications, financial technology (fintech), startup ventures and retail will be much more interested to invest in areas that will see them adopt new technology, and improve human resources development to support their businesses,” Kitipong said.
New areas
“These areas of investment would include artificial intelligence, automation, Big Data, Internet banking and data analytics. By moving into such areas, these companies will be able to better compete with their rivals, improve productivity and increase the efficiency of their businesses. Such efforts will result in the improved competitiveness of the country as a whole.”
The STI also expects that the country’s spending on R&D, science and technology and other innovative technologies will climb to 1.5 per cent of GDP in 2021.
Kitipong said that last year these outlays amounted to Bt142 billion, representing around 0.95 per cent of GDP. As with this year’s projection, the private sector accounted for 70 per cent of this investment.
In 2016, the investment totalled Bt113.5 billion, with private companies contributing 73 per cent of this amount.
For 2017, the International Institute for Management Development (IMD) reported that Thailand ranked No 27 out of 63 countries in the IMD World Competitiveness table.
Within the overall ranking of 27th, Thailand was ranked 10th for economic performance, 20th for government efficiency, 25th for business efficiency and 49th for|science infrastructure.
