With a budget of 12 billion baht allocated for fiscal 2016, the Science and Technology Ministry vows to play a vital role in stimulating the economy and strengthening Thailand's competitiveness.
Science and Technology Minister Pichet Durongkaveroj said the ministry has been tasked to work more closely with the economic ministries to support private companies and strengthen the competitiveness of both large companies and small and medium-sized enterprises (SMEs).
Since taking office late last month, Deputy Prime Minister Somkid Jatusripitak, who chairs the new economic team, has included the ministry for the first time in economic ministries and put it under the supervision of the deputy prime minister overseeing economic affairs.
Previously, the Science and Technology Ministry was supervised by the deputy minister who oversees social affairs.
Mr Pichet said various countries have also shifted their science ministries to play a vital role in supporting economic growth.
According to Mr Pichet, the ministry plans to allocate 500 million baht in 2016 to innovation coupons that will be given to SMEs interested in developing their products and stimulating their competitiveness.
Many SMEs have difficulty gaining access to the financial resources needed for investment and hope this project will help them secure financing.
Under the innovation coupon scheme, the ministry will support 75% of a project's value worth no more than 1.5 million baht for SMEs to develop their innovation. SMEs need to account for the remaining 25%.
The ministry will also double the budget to 330 million baht in fiscal 2016 for the Industrial Technology Assistance Programme, which aims to help SMEs meet the challenge of introducing technology-based products and processes.
According to Mr Pichet, the ministry is also committed to implementing various projects to support both small and large companies to upgrade technology, human resource development and promote research and development (R&D) for commercial purposes.
"The government early this year approved a raft of tax incentives to lure the private sector to play a more active role in the country's innovation development," he said. "The move aims to increase the country's R&D expenditure to 1% of GDP by 2016 from the current 0.37%."
R&D expenditure is estimated to reach 39 billion baht next year, with 30% from the government and a large portion of the remaining 70% from the private sector.
In 2015, total spending on R&D is estimated to reach 20 billion baht, with the government accounting for 45% and the private sector 55%.
The new incentives include higher tax deductions for private companies that invest in their own R&D to 300% for five years (2015-2019) from 200%.
The government will also allow the private sector to enjoy privileges from the Board of Investment on an individual company basis instead of only investment projects to attract more private firms to spend on R&D.