THAILAND

SELF-ASSESSMENT REPORT

& BEST PRACTICE

Sonthawan Supattaraprateep

National Science and Technology Development Agency

1

Daegu Initiative First-Cycle Assessment WorkshopJune 7, 2010

Hong Kong, China

Outline of Presentation2

Reported by Office of Small and Medium Promotion (OSMEP)Thailand3

Thailand

Self-Assessment Report

Self-Assessment Report4

Area A: Developing human resources and technology through linkage between industry and educational and research institute

Area B: Access to specialist assistance and advice

Area C: Enhancing availability of capital to innovative SMEs

Area D: Network and Clustering for innovative SMEs

Area E: Establishing appropriate legal and regulatory structure

Area F: Market consistent economic environment

Area G: Developing methodologies for effectively measuring progress in the implementation of innovation programs for SMEs

Area A: Developing human resources and technology through linkage between industry and educational and research institute

5

Related educational institutions, agencies in government and private sectors and R&D institutions collaborate with entrepreneurs in providing major science and IT services.

Establishing Technology Licensing Office (TLO) can be relevant policy measure.

Create the motivation for an entrepreneur, such as presenting the example of successful entrepreneurs, providing the business information, supporting the winner of business plan contest, offering tax waive for recently started business, and preparing to be an entrepreneur via SMEs incubation system and SMEs course development (SMEs University)

Knowledge transfer for the existing SMEs entrepreneurs in the pattern of training, seminar and education, both knowledge of business management and specialized knowledge, namely intellectual property, export, security system for business in terms of occupational health, safety and labor law, skill and expertise development for entrepreneurs and employees in SMEs, to enhance their competency and expand the business

Area B: Access to specialist assistance and advice

6

In developing the database on macro economy for SMEs, academician and

relevant parties can indicate the effectiveness of Thailand, including

database program for calculating industrial dimension index, system for

industrial IT and facility for entrepreneurs. The knowledge of business tax

is also transferred to entrepreneurs via website.

Develop a machine prototype under reverse engineering concept for SMEs

establishment in production sector.

Provide consultancy and business competitive diagnosis as well as

improve the working process by using environmentally friendly

technology and machine development, including the development of new

product design and standard guarantee for SME entrepreneurs in

production sector.

Area C: Enhancing availability of capital to innovative SMEs

7

In 2009, the collected information revealed that money institutions that specially offers SME loan are SME Bank,

Government Savings Bank and

Bank for Agriculture and Agricultural Co-operative, with the total loan amount of 59.5 billion baht for entrepreneurs. In 2009, 58.002-billion-baht loan was approved.

Regarding the loan guarantee service implemented by Small Industry Credit Guarantee Corporation (SICGC),

the guarantee amount In 2009 was 30 billion baht.

Currently, 6.223 billion Baht was spent and 2,148 entrepreneurs were guaranteed.

Area D: Network and Clustering for innovative SMEs

8

Supportive strategy for SMEs in major regions includes promoting cluster linkage to create

value chain in branches with strong potential and encouraging the assembly/linkage of

community enterprise by strengthening the existing cluster that was developed in a certain

level, promoting continuous cooperation, and encouraging the creation of new potential cluster,

including the linkage between production and marketing as well as linkage with large

enterprise or export in order that entrepreneurs can share the task by individual expertise,

exchange the knowledge and experience, and create business opportunity.

Cluster development: According to the study as the guideline for developing potential cluster

in several regions countrywide, cluster in the targeted industries in nine areas of regions can be

divided into:

Rice Tourism Textile

Rubber Fruit Auto parts

Logistics Information Technology Dock and shipyard

Ceramics Sa paper Jewelry

Construction and decoration materials Furniture, including rubber wood furniture

New entrepreneurs can prepare themselves via SME incubation system and course development

in business conduct (SMEs University) and are provided with significant SMEs knowledge,

such as management, export, good governance recognition, safety and occupational health as

well as specialized knowledge in each field.

Area G: Developing methodologies for effectively measuring progress in the implementation of innovation programs for SMEs

9

Main information derives from

National Science Technology and Innovation Policy Office (STI),

National Science and Technology Development Agency (NSTDA),

National Innovation Agency (NIA) and

Thailand Institute of Scientific and Technological Research (TISTR).

OSMEP is a planning unit on SMEs promotion in Thailand

National Science Technology and Innovation Policy Office (STI) is the subordinate unit of Ministry of Science and Technology (MOST). It gathers data, presents policies as well as monitor and evaluate Thailand’s and business sector’s outcome of technology and innovation support

Many projects are the international collaboration on technology and innovation , especially the one between foreign countries and educational institutions,

Thailand Institute of Scientific and Technological Research (TISTR),

National Science and Technology Development Agency (NSTDA),

National Innovation Agency (NIA) and

Software Industry Promotion Agency (SIPA).

THAILAND BEST PRACTICE :

ITAP : INDUSTRIAL TECHNOLOGY ASSISTANCE PROGRAM

Sonthawan Supattaraprateep

National Science and Technology Development Agency

Organization structure11

NSTDA: National Science and Technology Development Agency

BIOTEC: National Center for Genetic Engineering and Biotechnology

MTEC: National Metal and Materials Technology Center

NECTEC: National Electronics and Computer Technology Center

NANOTEC: National Nanotechnology Center

TMC : Technology Management Center

iTAP: Industrial Technology Assistance Program

Overseas Experts

Local Experts

Universities

Research

Institutes

ConsultantsKnowledge

ProviderCompany’s

Needs

Finance

Market

Regulation

Management

TECHNOLOGY

iTAP Operation Model

“ITAP : A Tool for Technology Transfer……Linkage Knowledge to Enhancing Industry’s Capability”

Human

12

Diagnose

problem &

needs

In-depth

consultancy

Techno-

business

matching

Seminar/

workshop

Meeting/

Brainstorm

Like to other

Private support

program

Information

services

Feasibility

study

Industrial

needs consultancy

Enhance

Linkages &

network

Technology

acquisition

Key mechanism

supportive

mechanism

iTAP

mechanism

Mechanisms of iTAP

13

Where we want to go?

Labor IntensiveSkill Intensive

Technology Intensive

R&D Intensive

Advanced Level

Create innovation

(create new ideas)Intermediate Level

Upgrade technology

(design)Basic Level

Day-to-Day problem solving

(cost reduction, productivity)

14

LaborIntensive

SkillIntensive

TechnologyIntensive

R&DIntensive

Medical & Health

Software

Energy & Environment

Automotive (plastic metal rubber chemical)

Wood & Furniture

Food & Agro-industry

Textile

Target Industry

15

iTAP Profile

To be the National technology solution support program for helping real sector by introducing & value creatingof technology-based products, processes and services

1. To enhance & strengthen innovative competitivenessof real sector especially for SMEs and Industrial cluster

2. To support technology transfer both from “Market to Lab” and from “Lab to Market”

3. To operate as national networks with qualified, knowledgeable & experienced staff

1. Client focus2. Excellence in Delivery3. Networking

VISION

MISSION

Core

Value

Industrial Technology Assistance Program : iTAP 16

iTAP networks across Thailand

Existing ITAP networks

ITAP Head Quarter

NSTDA

KMUTT

SUT

NN-NSTDA

WU

PSU

KKU

TGI

MSU

UMU

Central-NSTDA at Thailand Science Park (Pathumthani)

North-NSTDA Northern Network (Chiangmai)

South-Walailuk University (Nakorn Sri Thammarat)

-Prince of Songkhla University (Songkhla)

Northeast-Suranaree University of Technology

(Nakorn Ratchasima)

-Khon Kaen University (Khon Kaen)

-Mahasarakarm University (Mahasarakarm)

-Ubon Ratchathani University (Ubon Ratchathani )

West-King’s Mongkut University of Technology Thonburi

(Bangkok)

East-Thai-German Institute (chonburi)

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Key Performances of iTAP18

18

Contact SMEs ~15,000 companies

Preliminary analysis 3,687 companies

Technology Based Project

(new) 2,377 projects

Technology Acquisition 72 trip 986 companies

Training/Seminar 585 courses 22,273 person

support

SME

Develop

techno.

HRD in

SMEs

As of March 31, 2010

174

261

319

425

390

0

50

100

150

200

250

300

350

400

450

500

2006 2007 2008 2009 2010

(2Q)

59

70

114

0

25

50

75

100

125

150

2548 2549 2550

Technology Development

ProjectBudget Staff

No. of ProjectsMillion Baht person

52

72

81

93 95

0

20

40

60

80

100

120

2006 2007 2008 2009 2010

(2Q)

70

114

128

139 140

0

25

50

75

100

125

150

175

2006 2007 2008 2009 2010

(2Q)

As of Mar 31, 2010

iTAP Performances & Resources2006-2010 (Q2)19

iTAP Statistical Report 2006-2010 (Q2)

Metropolitan, 816

Northeast, 241

Northeast, 219

South, 131

East, 79

Central, 56

West, 51

Location

844.3

309.5

0

100

200

300

400

500

600

700

800

900

1000

Mill. Baht

SME investment iTAP support

Project Investment

20

565

364

205

118

93

49

35

28

25

23

22

21

19

14

12

Food & Agroculture

Others

Wood&Furniture

Health

Software

Automotive Parts

Textile

Ceramics

Construction

Electronics

Machinery

Jewelry

Trade & Services

Energy & Environment

Packaging

0 100 200 300 400 500 600

No. of project

671

481

285

222

113

Product

Process

Standard

Other

Machine

0 100 200 300 400 500 600 700 800

No. of project

Type of Project Industry

21

iTAP Statistical Report 2006-2010 (Q2)

Achievement: Innovative SMEs

22

Do

Dare

Difference

Dream

iTAP: We care,We share,We dare to do.