Upload
vumien
View
221
Download
5
Embed Size (px)
Citation preview
STIPI
Area-based Innovation
Strategies
and Middle Income Trap (MIT)
of Thailand Jeong Hyop LEE, Ph.D.
Senior Advisor
Science, Technology and Innovation Policy Institute (STIPI)
King Mongkut’s University of Technology Thonburi (KMUTT), Thailand
ASIALICS
Oct 3, 2016
Bangkok, Thailand
1
STIPI
• Perspectives of Innovation Systems are good at describing successes in the past and other countries/areas
• Consequent benchmark-based policy recommendations not guaranteeing effective problem solving policy interventions
• Still relevant are entrepreneurship (Schumpeter), learning and role of government for catching-up industrialization (Amsden) and others.
• Applying those buzzwords into the system analysis being prone to blame each other and make relevant stakeholders cynical and desperate
Buzzwords and MIT
2 JHLee, Science, Technology and Innovation Policy Institute (STIPI), KMUTT
STIPI
Thailand:
• Plenty resources & reasonable population size
• Inducing a few global companies of Japan and others; automotive and electronics industries
• Leading the ASEAN region with benevolent and generous people to willingly share their fortune with neighboring countries
Natural Endowments and Leadership
3 JHLee, Science, Technology and Innovation Policy Institute (STIPI), KMUTT
STIPI The “Middle Income Trap” Locked-in middle income trap
• Stagnant growth and non-resilience to frequent economic and natural crisis
• Loosing leadership in the region
Annual GDP growth, 1961-2011
(OECD Reviews of Innovation Policy
Innovation in Southeast Asia, 2013)
4
STIPI STI and Area-based Strategies Innovation strategies
• 300 % tax deduction
• Talent mobility
• R&D in ten strategic areas
• Procurement and PPP as new policy delivery mechanisms
The Startup Thailand, launched last April 2016
• Promoting entrepreneurship, reaching out to Chiang Mai, Khon Kaen
and Phuket.
• Three startup streets in Bangkok; Innovation district near the
Knowledge Exchange Center with KMUTT, Siam square with
Chulalongkorn and the Food Innopolis with Thamassat U, AIT and
Thailand Science Park.
• Electric vehicle industry promotion with utilizing existing automotive
and electronics industrial capabilities
• Phuket
Eastern Seaboard
5 JHLee, Science, Technology and Innovation Policy Institute (STIPI), KMUTT
STIPI Conceptual Framework
• Alternative way to diagnose the systemic structural bottlenecks of Thailand, articulate relevant solutions and position/guide (existing and future) innovation programs for betterment?
System Diagnosis
Solutions
Innovation
Programs
6 JHLee, Science, Technology and Innovation Policy Institute (STIPI), KMUTT
STIPI Framework Principles
For more information you can refer to “STI Strategies and Action Planning in ASEAN” by Jeong Hyop Lee ets (2015)
- Followings are considered to go beyond benchmark which only provides irrelevant and decontextualized recommendations
- Holistic approach to overview system weakness and bottlenecks, to provide contextual understanding of them and to identify the leverage points to start the system transformation process with limited resources and expertise
- Future design approach to set future-oriented goals and find pathways of necessary steps in back-cascading way to minimize uncertainties and complexities
- Intuitive approach to articulate story telling type strategies with limited information and hence increase the consensus among stakeholders for better implementation
7
STIPI Tentative Descriptive Holistic Diagnosis
o Systemic absence of engineering and management capacities is a critical cause of the poor performance and affected by the long tradition of mercantilism.
o This institutional backwardness became bottlenecks of industrialization, informatization and knowledge-intensive startup promotion.
o It is because of the core capacity absence that the benevolent supports for neighboring countries cannot be culminated in the sustainable business development mechanism and mutually benefitted regional partnership.
• Low value added export products
• Domestic market oriented by local large companies
• Degradation of 1st tier suppliers to 2nd /3rd tier ones • High aesthetic sense of Thai not fully utilized
Phenomena
Poor economic
performance in Thailand
Short-term profit investments
such as condo development
Talents are not cultivated for
industrialization
Technological developments
are not favored by private
sectors.
8
JHLee, Science, Technology and Innovation Policy Institute (STIPI), KMUTT
STIPI Tentative Futuristic Solutions
Engineering and management capacity by which institutional transformation of the whole system can be triggered.
In partnership with foreign stakeholders, there should be on-the-job capacity development process
To bring in the foreign talents, the enlarged ASEAN regional market is a necessary condition. Sufficient conditions will be prepared as Thai STI stakeholders engage in real problem solving innovations in partnership with neighboring countries. This will also provide a strong rationale for their commitment for the capacity building.
Thailand may pursue a regional hub with business development mechanism and help neighboring countries while Thai benefitted with the enlarged market.
9 JHLee, Science, Technology and Innovation Policy Institute (STIPI), KMUTT
STIPI
Position and Requirements of Area-based Innovation Strategies
• A platform to experiment and implement system transformation process in strategic partnership with foreign STI stakeholders in Thailand.
• The foreign partnership are required for capacity development, regional problem solving and business development.
• Domestic absorptive and dynamic core capacity development process needs be carefully designed especially considering the low market affordability and poorly cultivated product/service development capacities.
10 JHLee, Science, Technology and Innovation Policy Institute (STIPI), KMUTT
STIPI Case Studies
Bangkok Startup Streets: Innovation districts, Siam square and Food Innopolis
Local Innovation (startup) ecosystems: Chiang Mai, Khon Kaen and Phuket
Electric vehicle and new ICT innovation
11
• Phuket
Eastern Seaboard
JHLee, Science, Technology and Innovation Policy Institute (STIPI), KMUTT
STIPI Case 1: Three BKK Startup Districts
A few cloning success startup
models of e-book, e-payment and
others in a naturally protected
market with cultural and linguistic
barriers and modest market size
Laws/regulations (IP belongs to government if
developed with grants),
government policies (Hard startup business environment, HR not
qualified for right question articulation),
institutions and investment practices (no high risk/return), which are not favorable for
startups
• University Initiatives:
KMUTT (Top-down),
Chulalongkorn (Bottom-up)
• Government Initiative:
Food Innopolis
Scale-up?
Successful
implementation of
startup districts?
Institutionalization
of startup
businesses?
Traditional mercantile institutions?
12
STIPI
JHLee, Science, Technology and Innovation Policy Institute (STIPI), KMUTT
STIPI Food Innopolis • Promoting new technology-based food and agro businesses with
anchor facilities.
• Needs be positioned as a system integrator for global market in the existing agro and food system which is dominated by a few large domestic companies in the oligopolistic market.
• Focused on product development and may develop a global business platform with agencies which are commissioned for domestic and international market development (such as National Food Institute) .
• With this platform, strategic partnership with global e-commerce market places such as Alibaba (China), Coupang (Korea) needs be initiated and potential local and international producers are to be cultivated to provide the identified global market demands.
• The innovation ladder strategies need be prepared to develop more value-added and sophisticated food products in partnership with local universities and research institutes.
13
STIPI
JHLee, Science, Technology and Innovation Policy Institute (STIPI), KMUTT
STIPI Case 2: Local (Startup) Innovation Ecosystem
Strong regional
identity and
competitive local
universities
Lack of local
quality jobs and
brain drain
Bottom-up initiatives
Chiang Mai University
Café de Innova (Startup
Incubator)
Khon Kaen Smart City
initiative by private sector
Double bottlenecks of general MIT
conditions and lock of local
autonomy
Partial policy engagement
through talent mobility, integrated
work and Science & Technology
Park programs
Limited outcomes with
activity and output
based performance
14 JHLee, Science, Technology and Innovation Policy Institute (STIPI), KMUTT
STIPI Chiang Mai
• ICT-based strategic industry promotion: tourism, agriculture, creative and handicraft industry
• With quite good local s/w engineers, a few animation studios and international contracts were successfully accomplished.
• Not comprehensively addressed for other strategic industries
• High caliber engineers from local universities and research institutes are not fully geared to contribute even though implementation of talent mobility programs and others.
• Regional master plan should be developed as an overarching guideline for collective process of capacity development.
15
STIPI
JHLee, Science, Technology and Innovation Policy Institute (STIPI), KMUTT
STIPI Phuket (and Southern Region) #1
• Strong in hospitality industry (tourism and service) and forestry,
agriculture, mining and seafood are also major local industries.
FDI were incentivized to utilize cheap labors and natural resources
by BOI from 1980s until late 1990s. After that, SMEs were
promoted. And then tourism followed.
• Local food-processing industries in the south were closed down or
loosing competitiveness because labor costs increased and natural
resources depleted. Palm oil and rubber plantation and their
downstream SMEs remained. Tourism is threatened by the natural
disasters. Marine industry was alternatively pursued with the canal
plan, which was suspended because of political reasons and the
deep sea port issues on both side of the canal.
16
JHLee, Science, Technology and Innovation Policy Institute (STIPI), KMUTT
STIPI
• Medical tourism and health industry with medical equipment are
positively considered in line with current tourism of geographical
uniqueness.
• Existing industrial upgrading needs be carefully managed. Western
part of the region may be specialized in service while eastern part
can build up innovation capabilities with local universities of
especially three large population provinces.
• Medical, agriculture and embedded researches which are relatively
strong can be geared to promote local industrial upgrading and
diversification.
17
Phuket (and Southern Region) #2
JHLee, Science, Technology and Innovation Policy Institute (STIPI), KMUTT
STIPI
Case 3: Electric Vehicle and New ICT Innovation Strategies #1
• Thai has successfully managed to induce foreign direct investments to build automotive and electronics industries.
Thailand Board of Investment (2015)
Thailand Moving Ahead with Cluster
Development
Cluster for activities using advance
technology and future industry e.g.
Automotive and Parts Cluster (7 Provinces)
Electrical Appliances, Electronics &
Telecommunication Equipment Cluster (7
Provinces)
Eco-friendly Petrochemicals and Chemicals
(2 Provinces)
Digital-based Cluster (2 Provinces)
Food Innopolis
Medical Hub
18
JHLee, Science, Technology and Innovation Policy Institute (STIPI), KMUTT
STIPI
• EV innovation strategies are necessary since technological
upgrading of local automotive suppliers does not guarantee EV industrialization in Thailand.
• EV service ecosystem which has natural market barriers and core
technology capacity development on EV charge system in the tropical climate may potential leverage to start EV innovation.
• Various ICT service opportunities such as IoT, Big Data and Cloud
Computing are explored through smart cities and others while the emerging Industry 4.0 is threatening the labor-intensive industry of Thailand.
• To boost ICT innovation requires a double edged sword to create and expand market and to build core supply capacity in Thai.
Case 3: Electric Vehicle and New ICT Innovation Strategies #2
19 JHLee, Science, Technology and Innovation Policy Institute (STIPI), KMUTT
STIPI Policy Recommendations
• Appropriate strategies
• Driving mechanism
• Relevant indicators for monitoring and feedback
• Thai specific philosophy for resource and expertise mobilization
20 JHLee, Science, Technology and Innovation Policy Institute (STIPI), KMUTT