The National Science and Technology Development Agency (NSTDA) expects investment by the private sector in research and development (R&D) to double in the next three years, spurred by supportive government measures.
An NSTDA survey found R&D spending by the private sector more than doubled to 21.1 billion baht in 2011 from only 10 billion in 2009 when the government launched support measures including a tax holiday for imported equipment and machinery, a 200% tax deduction for R&D budgets, grants for R&D activities and the establishment of R&D facilities at Science Park in Pathum Thani.
The R&D budget of all state agencies totalled 40 billion baht in 2011 or 0.3% of gross domestic product (GDP).
Yesterday the NSTDA launched an online R&D certification service to facilitate businesses deducting 200% of their R&D expenditure in taxes.
President Taweesak Koanantakool said the NSTDA has also teamed up with the Securities and Exchange Commission and leading businesses to encourage small and medium-sized enterprises that invest a lot on R&D and innovation to list on the bourse.
In the past two years, 16 small businesses had IPOs on the Stock Exchange of Thailand and the Market for Alternative Investment to raise funds for expansion.
Anantapong Sukket, R&D promotion programme manager, said only 70-100 firms have asked for tax exemptions, but the NSTDA estimates 1,000 firms across Thailand have invested in R&D.
"They were reluctant to ask for a tax refund due to the inconvenience of the system and concerns about business confidentiality," he said. "We expect at least 500 firms to use the online system this year."
The NSTDA plans to boost the R&D budget in Thailand to 1% of GDP, meaning spending would more than triple to 130 billion baht from 40 billion in 2011.
Siam Cement Group will double its R&D spending to 4 billion baht this year.