A national innovation committee has agreed to promote the development of original Thai businesses by requiring all state agencies to spend at least 10% of their procurement budgets on buying cutting-edge goods and materials from local companies.
The newly-established committee held its first meeting yesterday at the Sirindhorn Science Home in Pathum Thani province. Prime Minister Gen Prayut Chan-o-cha chaired the meeting, which discussed how to drive economic growth by increasing the country’s capabilities in innovative development.
The meeting agreed that state agencies should allocate between 10% and 30% of their procurement budgets to purchasing innovative domestic materials.
A regulation on state procurement must be amended to facilitate the initiative. A list of innovative products that state agencies could buy will also be set out, according to Deputy Prime Minister Yongyuth Yuthavong.
He added that the policy will become part of a national strategy requiring the Science and Technology Ministry to consider amending relevant laws to support and promote the scheme. In addition to promoting innovation and technology, Mr Yongyuth said the national committee will talk to the Finance Ministry about the possibility of allocating 3% of state enterprise benefits to invest in technology and innovation development.
SCG Group president and chief executive Kan Trakulhoon, who is also a member of the committee, praised the government for its action to promote national innovation and technology development, saying Gen Prayut is the first prime minister to target the issue directly.
“We have set a clear direction,” he said. “We will see a significant growth in innovative technology on a commercial scale, which will ultimately help businesses to reduce production costs.”
A cabinet resolution to increase tax deductions from double to triple what businesses spend on research and development will draw more foreign investment to Thailand, which could drive the country to be the regional hub for innovation, Mr Kan added.
Japanese operators are also set to invest in technology research and development in the country that will create many jobs for Thai researchers, he said.