Thailand should build a strong innovation ecosystem that can quickly yield outcomes, creating a new engine of economic growth, say executives and scholars.
This means the country should focus on research with a meaningful economic impact.
"Innovation is not about technology -- it requires an innovation system to drive economic growth," Kris Chantanotoke, board chairman of Thailand Science Research and Innovation (TSRI) and chief executive of Siam Commercial Bank, said during a recent TSRI dinner talk titled "Igniting Thailand's GDP through the STI Fund".
To build an effective innovation system, incentives are crucial to foster network collaboration, said Mr Kris.
He said Thailand's economy remains fragile, making it unlikely that annual GDP growth will exceed 2% over the next few years.
SETTING THE RIGHT GOALS
Mr Kris said innovation cannot drive the economy unless the correct goals have been set.
Thailand focuses on the input target and measures it by the number of research publications with a goal of having an R&D budget of 2% of GDP by 2027.
Unlike Thailand, Canada focuses on the impact target in an effort to become a leader in artificial intelligence, with a goal of generating US$50 billion in economic value over a period of 10 years.
"Research is flourishing like mushrooms, but the actual application of innovation remains limited," said Mr Kris.
He said it was time to shift from funding allocation to system design, building an ecosystem and collaborating to develop and leverage research work for meaningful impacts.
Thailand needs to select targeted research areas with a meaningful impact on the economy and in line with country's resource and skilled labour.
Mr Kris suggested Thailand focus on medical tourism and wellness, automotive, electronics, and food and agriculture.
"Each of these sectors can connect with its own supply chain to deliver a tangible outcome," he said.
Mr Kris said the trade war is affecting Thailand's existing economic engines. Thailand relies on exports to the US for 18% of its total trade.
A decline in tourism and a high level of household debt is further straining the economy, he said.
Mr Kris said Thailand had few resident patent applications for every million inhabitants in 2023, recording only 11, compared with 274 in Singapore, 1,079 in China, 1,839 in Japan and 3,696 in South Korea.
Kobsak Pootrakool, executive vice-president of Bangkok Bank, said Thailand should increase the opportunity to grab investment flows in Southeast Asia by strengthening the nation's advantages of geographic connectivity, good infrastructure, and end-to-end supply chain.
Mr Kobsak said the country should build a new ecosystem of people to serve new industries, particularly the semiconductor industry. The country should also attract foreign talent.
It should continue to build physical and digital infrastructure, new supply chains for new industries, promote ease of investment, and scrap outdated regulations.
The country needs to upgrade traditional sectors and build new strategic sectors, ranging from fintech and agritech to climate tech.
TIMELY RESULTS
Somkiat Tangkitvanich, president of the Thailand Development Research Institute, said Thailand should no longer rely heavily on exports due to the protectionist policies of US President Donald Trump.
Innovation will help unlock the country's growth opportunities, but research must focus on fields that can impact the economy, he noted.
He said several universities in Japan may not rank among the world's leading institutions, but they have produced research with real impact -- such as analysing athlete genetics, developing matcha green tea, and cultivating marine animals in freshwater environments.
Mr Somkiat said research should yield results within a short period of time. Researchers should possess market feasibility, technology feasibility in terms of product specification and cost estimation as well as financial feasibility with both revenue and profit projections.
Sompong Klaiyananwasuang, director of the TSRI, said the organisation stands ready to serve as a national platform linking academia with real-world applications, ensuring that research delivers tangible and measurable impacts.