Innovation through research and development (R&D) is the next high-growth area where Thailand severely lags behind regional rivals Singapore and Malaysia, says the president and chief executive of Siam Cement Group.
"The key to the country's survival is to change how we do business," Kan Trakulhoon told yesterday's Thailand Innovation Forum hosted by SCG.
Thailand spends the equivalent of 0.2% of its gross domestic product on R&D, a figure far behind that of Malaysia or Singapore.
Mr Kan said innovation usually takes 10 to 15 years to yield results.
"It is an area of high return on investment, but it takes a long time for the benefits to be realised," he said. "So it requires joint cooperation between the public and private sectors."
Prof Eugene Fitzgerald of the Massachusetts Institute of Technology pointed to the difficulty in transferring academic research to areas of commercialisation, as research traditionally is based on the needs of the researcher.
By the time the research can be applied, there is limited appeal, he said.
"Most growth areas over time become normal growth," said Prof Fitzgerald.
Young Sung Jeon, managing director for Thailand of South Korea's Samsung Electronics, said innovation is at the heart of Samsung, with the company's R&D department and design centres playing key roles.
Samsung believes that good design brings happiness to society. Before seeing the real world, R&D goes through the company's 39 worldwide design centres, each analysing local designs and trends to satisfy local needs.
Samsung attributes its success to speedy and flexible management while minimising inventory.
"Sell it while it is fresh," said Mr Young, noting Samsung ranked ninth among the world's most valued brands last year.