Trade and Development Board Investment, Enterprise and Development Commission Multi-year expert meeting on enterprise development policies and capacity-building in science, technology and innovation Geneva, 20–22 January 2009

PAPER SUBMITTED TO THE EXPERT MEETING*

Policy Instruments to Enhance STI Capabilities in Thailand

by

Mr. Yada Mukdapitak

Assistant President National Science and Technology Development Agency (NSTDA)

________________ * The views expressed are those of the author and do not necessarily reflect the views of UNCTAD.

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Dr. Dr. YadaYada MukdapitakMukdapitakAssistant PresidentAssistant President

National Science and Technology Development Agency (NSTDA)

Presented at

Multi-Year Expert Meeting on Enterprise Development Policies and

Capacity-Building in Science, Technology and Innovation

20-22 January 2009

Geneva, Switzerland

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OutlineOutline

• Thailand’s S&T Strategic Plan

• Policy Instruments to Enhance

Technological Capability of the

Enterprises: Case of NSTDA

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National Science and Technology National Science and Technology Strategic Framework (Strategic Framework (20042004--2013)2013)

Core technologies:

1) ICT2) Biotechnology3) Material Technology4) Nanotechnology

KBSCore

TechnologiesEnabling

Environment

NationalInnovation

System(Clusters)

HumanResources

Goals• Number of enterprises having innovation increases to 35% and value of

knowledge-intensive products/services reaches the average range of OECD.• Higher income, stronger community economy and better quality of life.• S&T ranking of Thailand above the median of IMD ranking.

Vision: Strong economy with knowledge society and better social well-being

Sustainable competitiveness Community economy Q of life/ EnvironmentLearning society

Source: National Science and Technology Strategic Plan (2004-2013)

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National S&T Strategic PlanNational S&T Strategic PlanPolicy Prioritization and StrategiesPolicy Prioritization and Strategies

Food Auto-mobile Textile HealthTourism

Software &

Microchip

BioIndustry

Enhance S&TPublic awareness

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Core Technologies

Scientific Knowledgelife science, physics, math, computer, material science

EconomyEconomy SocietySociety

Youth

Environment

The Underprivileged

OTOP

2 Develop S&T human resource

5 Improve S&T management system

Develop Clusters and Strengthen Community Economy and Quality of life

Biotechnology ICT Materials

technologyNano

technology

1

3 Develop S&T infrastruc-ture and institutions

Source: National Science and Technology Strategic Plan (2004-2013)

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Policy Instruments to Enhance Technological Capability of the

Enterprises: Case of NSTDA

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Where’s NSTDA

Presently, located at Thailand Science Park at the northern part of Bangkok

with more than 2,500researchers and staff.

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NSTDA Focus

Core Technologies• Biotechnology• Software/Computer

Electronics• Materials Technology• Nanotechnology

Target Clusters• Food & Agriculture• Medicine & Public Health• Automotive & Transportation• Software, Microchips & Electronics• Energy & Environment• Textiles & Chemicals• Rural Communities and

Underprivileged

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Financial SupportFinancial Support• grants• soft loans• investment

Facilities SupportFacilities Support““ Science ParkScience Park ””““ SSoftwareoftware ParkPark ””

Technical SupportTechnical Support• information service• training• Testing & analytical services• industrial consultancy• technology acquisition• intellectual property service• commercialization of S & T• contract research

To enable firms toTo enable firms toacquireacquire

useusemodifymodifydevelopdevelop

technologytechnology

Human Human Resource Resource DevelopmentDevelopment

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• low-interest loans :

– applied R&D projects, upgrading of products or production processes and the building or refurbishing of laboratories

– Soft loans ≤ 30 MBaht, not exceeding 75% of total cost

• grants :

– higher risk industrial R&D projects

– Grants ≤ 5 MBaht, not exceeding 75% of total cost

““ ..financial assistance in the form of soft loans and ..financial assistance in the form of soft loans and grants to promote innovation in the private sector..grants to promote innovation in the private sector..””

Company Directed Technology Development Company Directed Technology Development Program : CDProgram : CD

Applications received ………………….Applications approved

421249

2,4884,401

Grants & Loans*

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Financial support: Commercialization of Financial support: Commercialization of Biogas Generation TechnologyBiogas Generation Technology

• Lab has technology for Biogas Generation from waste water from tapioca mills

• Tapioca flour mill needs appropriate technology for their waste water treatment

• NSTDA partners with bank to provide low interest loan to enable flour mill to invest in the waste water treatment technology (approx. $1.5M)

• After demonstrating the viability of this technology, Lab is able to commercialize the technology to many more companies

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202

11488 77

38 27 20 19 19 17 10 10

0

50

100

150

200

250

Agric

ultur

eCon

struc

tion

Drugs

and C

hemica

ls

Elec

tricals

and E

lectr..

.

Plas

tic P

rodu

ctsOthe

rs

Compu

ter S

oftwar

eFo

od an

d Fee

d

Plup

, pap

er an

d prin

ting

Metal

Garmen

t

Ceram

ics an

d Glas

s

Research and Development Research and Development Certification CommitteeCertification Committee

“ …revenue department incentive for companies to undertake R&D activities by providing tax exemption at an amount equal to 100 percent of the expenses incurred…”

No.

of P

roje

cts

Total 641 projects

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““ .. promotes private sector investment in science and .. promotes private sector investment in science and technology by cotechnology by co--investing i.e. forming jointinvesting i.e. forming joint--venture venture enterprises..enterprises..””

• NIC servicesPrivate sector Researcher

Financial support to projects that align with NSTDA’ s investment policiesMonetary advice for private sector

Creating Techno-entrepreneurs -Technology-business consultancy -

NSTDA NSTDA Investment Investment CenterCenter : : NICNIC

Examples of Portfolio: Internet Thailand Co.,Ltd., Shrimp Culture R&D Co., Ltd.,Innova Biotechnology Co., Ltd.

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Investment Partnership :Investment Partnership :Commercialization of Diagnostic KitsCommercialization of Diagnostic Kits

• NSTDA funds university researcher in medical biotechnology

• Researcher develops diagnostic methods for Hepatitis B and C virus, Cholera, Dengue

• Researcher starts up new company to produce diagnostic kits with NSTDA as co-investor (joint venture partner)

• New company continues research in new diagnostic methods

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Opened in 2002Area: 80 AcresSpace: 90,000 square metre(200,000 M2 for the whole project)National Research Centers :BIOTEC, MTEC, NECTEC, NANOTECSpace for private sector:incubator units, multi-tenant buildings, long term leased landProjection in 3 years: 120,000 M2: half is available for private sector- 200 companies- 4,000 knowledge workers- turn over of $ 100 million/year

Thailand Science Park (TSP)

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Tenants 2008

RDE 36RDE Support 5Technology Business Incubator

12Business Support 3Quality of Life 6

TOTAL 62

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Services in Services in TSPTSP

World-classFacilities,Research

Laboratories and Pool of Knowledge

Workers

Financial Programs (loans and grants)

Tax-Incentive Program for R&D expenditure

External Financial Services

Board of Investment full

privileges

Incubatorservices

Open-land Policyfor new buildings

by the Private Sector

Open-Lab PolicyFor Serving SMEs

Multi-tenantBuildings

IntellectualPropertyservices Industry

TechnologyAssistance

Program (ITAP)

Technology Transfer

(training)Quality System

Services

NSTDA Network

Unique internship

Program for students

Hub forCenters of

Excellence around the country

Technology Licensing Office

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IncentivesIncentivesBOI

• Exemption of corporate income tax for 8 years

• Import Tax exemption for machines, equipment and materials for R&D

• Accelerated depreciation of machinery and equipment

• Work permit and visa for foreign researchers and experts

• Allowance for foreign ownership

• Promote joint R&D between R&D institute (RDI) or university and

industry

• Tax credit 70% of R&D expenditure, but not exceed 10 million baht

Revenue Department

• 200% deduction of research expenses

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Science Park Development: Science Park Development: Present Scenario in ThailandPresent Scenario in Thailand

• Northern Science Park (1)• Chiang Mai

• Northeastern Science Park (1)• Khonkaen U.• Suranaree University of

Technology• Maha Sarakham U.• Ubon RaJathanee U.

• Central region (1)•• THAILAND Science Park, THAILAND Science Park,

NSTDANSTDA• Eastern Science Park (1)

• Burapha U.• Southern Science Park (1)

• Prince of Songkla U.• Walairak U.• Thaksin U.

55Science ParksScience Parks

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• Opened 2001• Incubator for development of software• Market information service• Training center for software engineering• Software testing and certifying service• Provision of hardware and software for shared

use

Software Park ThailandSoftware Park Thailand

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Software Park Thailand• 475.79 mil. Baht initial investment from

Government in 2000

• Total Space 13,000 sqm.

• Productive Space (Office rental space) 7,738.92 sqm.

• Affordable Office Space: 200 Baht per sqm. Compare to average range of 350-600 Baht per sqm.

• 53 tenants, 13 with International Business

• 98.5% average occupancy rate

Notes: In additional, there are regional software parks: 2 in the North, 1 in the Northeast, and 2 in the South of Thailand

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Present Scenario in Thailand

Northern SW Parks (2)• Chiangmai’s Artech Wireless Tech• Pitsanuloke SW Park

Northeastern SW Park (1)• Khonkaen E-saan SW Park

Central region (1)• Software Park Thailand

Southern SW Parks (2)• Samui IT Complex• Phuket Software Park

66Software ParksSoftware Parks

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Rapid Testing Kit for Yellow Head Virus and GAV (Gill Associated Virus) in Black Tiger Shrimp

Project to improve qualityof Small Pearl Tapioca (เม็ดสาคู) for Beverage

Hand Break for Sedan

Project to improve performance of traveling unit of 155 mm towed howitzer

New

Model

New New

ModelModelOld

Model

OldOld

ModelModel

Contract R&DContract R&D

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Joint R&DJoint R&D

• Joint R&D with private sector (in line with NSTDA’sstrength) such as– Novartis + BIOTEC– Shisheido + NANOTEC– Betagro + BIOTEC– Siam Cement Group + MTEC

• NSTDA’s International Co-operation Office for Co-ordinating international partners and Alliance Development Office for domestic partners

Ultimate goal in public-private partnership in R&D

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“ITAP : A Tool for Technology TransferLinking Knowledge to Industry to Enhance Capability”

Industrial Technology Assistance Program (ITAP)Industrial Technology Assistance Program (ITAP)

Overseas Experts

Local Experts

Universities

Research Institutes

ConsultantsKnowledge Provider Company

Finance

Market

RegulationManagement

TECHNOLOGY

Inno

vativ

e &Co

mpe

titiv

e

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Mechanisms of ITAP

Diagnoseproblem &

needs

In-depth consultancy

Techno-businessmatching

Seminar/workshop

Meeting/Brainstorm

Like to other Private support

program

Information services

Feasibility study

Industrial needs

consultancy

EnhanceLinkages &network

Technology acquisition

Key mechanism

supportive mechanism

iTAPmechanism

iTAPmechanism

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Industrial Technology Assistance Program (ITAP)

• Diagnose production problems, source local or overseas experts to solve problems, subsidize expenses

• Attach local university people to overseas experts, help technology transfer to firms and universities

• Promote university researchers as experts, create industry-university linkage, encourage collaborative and contract R&D

Contacted………………………...Diagnosed problems……………..Long-term projects……………….

10,0002,7091,547

1010 : 90

firmsfirmsfirmscountries

““ ……investigates and solves technical problems, investigates and solves technical problems, upgrades technology in firms.upgrades technology in firms.””

1

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Industrial Technology Assistance Program (ITAP)

““ ... assists the private sector to search for, and ... assists the private sector to search for, and acquire appropriate technology..acquire appropriate technology..””

Technology trips 66 Host countries 13Participanting firms 856

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10 Nodes of Provincial ITAP NetworkNorthern Region1. Northern NSTDA (Chiangmai) (NNSTDA)

Northeastern Region2. Khonkaen University (KKU)3. Maha Sarakham University (MSU)4. Ubon RaJathanee University (UBU)5. Suranaree University of Technology (SUT)

Western Region6. King Mongkut's University of

Technology Thonburi (KMUTT)

Eastern Region7. Thai-German Institute (TGI)

Southern Region8. Walairak University (WU)9. Prince of Songkla University (PSU) (2 Nodes)

WU

PSU

NNSTDA

KKU MSU

UBUSUT

TGIKMUTT

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Carpet Carpet MakerMaker

“ …new opportunity … made-to-order market … technology jump to high accuracy process … lab for creating, testing, > 10,000 color shades… “

PC Product PC Product InternationalInternational

“ …NTB (lead)… material innovation in wheel balancing weight … process development …world leader in product… “

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• Manage NSTDA’s intellectual properties• Market NSTDA’s IPs• Develop internal IP policy and regulations• Provide IP service to SMEs

Market-oriented research promotion (internal)

IP Registration

Technology Commercialization

Technology Licensing Office (TLO)

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Technology Licensing Office (TLO)““ ..disseminates intellectual property information and ..disseminates intellectual property information and promotes its use in research; files patents and provides promotes its use in research; files patents and provides IP consultancy services and commercialization of IP consultancy services and commercialization of technologytechnology””

Institute of Solar Energy Institute of Solar Energy Technology (ISET)Technology (ISET)

“…develop amorphous silicon solar cell with capacity of 3 MWatts and module efficiency of 10% in 2006 ..“

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Intellectual Property Services (IPS)

483227145

FiledFiledRegistered

Thai patent applicationscopyrightstrademarks

““ ..disseminates intellectual property ..disseminates intellectual property information and promotes its use in information and promotes its use in research; files patents and provides IP research; files patents and provides IP consultancy services to organizations and consultancy services to organizations and the private sector..the private sector..””

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TThailand hailand GGraduate raduate IInstitute of nstitute of SScience cience and and TTechnologyechnology : : TGISTTGIST

• awards scholarships for graduate students in collaborative projects between university and NSTDA researchers

• encourage projects with industrial partner or industrial demand

• students can work in university, NSTDA, or company labs

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Junior Science Talent Project (JSTP)Junior Science Talent Project (JSTP)• From 1998-2006• 1,335 students

participate in the project

• 116 students are awarded NSTDA’sscholarship

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Practice SchoolPractice SchoolUniversity-Industry Partnership

Advisorresearch problem

student

mentor

advise at site area

problem solving

enterprise

consult for operation

and process

universitymutually agree in research problem

Example of PS programs currently carried out:

- ChEPS- FEPS- C-Cheps

•Policy toward the future:

Scale expansion Scope expansion - PhD level- other fields

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Thailand Advanced Institute of Thailand Advanced Institute of Science and Technology Science and Technology (THAIST) (THAIST)

There is an effort to set up a consortium-type research university namely “Thailand Advanced Institute of Science and Technology” (THAIST). THAISTcreates synergetic collaboration among universities and research institutes both domestic and overseas to produce research graduates in scientific, technological and related management fields (e.g. management of intellectual property).

NSTDA

TGIST: AIT, Thammasat/SIIT, KMUTT, KMITL, Chula, Mahidoletc.

THAIST

Overseas:Tokyo Tech, MIT etc. World-Class

Master andPhD Graduates

World-Class Master and

PhD Graduates