Private companies are advised to step up investment in research in order to make more innovative and value-added products and avoid falling prey to disruptive technology.
Kan: Companies could be 'eradicated'
Kan Trakulhoon, board chairman of Advanced Info Service and co-chairman of the Pracha Rat (People's State) steering committee on innovation and productivity, said private companies must allocate at least 2-3% of their annual sales to investment in R&D to retain their competitiveness.
He warned that large companies in particular may collapse if they remain loath to shift their manufacturing to innovative products, as technology is rapidly and drastically changing.
"We're afraid that those large companies might be eradicated because of the disruptive technology," Mr Kan said.
The former president and chief executive of Siam Cement Group said SMEs that hesitate to invest in R&D have a thin chance of survival in such a volatile environment.
He noted that SMEs in Japan have allocated about 10% of their sales to R&D.
Mr Kan said he gave his full support to the government's measures to promote foreign and Thai companies to invest in R&D, adding that Thailand is expected to take a big step if it manages to raise R&D spending to 1% of GDP in 2018 or 2019.
The latest information showed that spending on R&D was 0.62% as a share of GDP in 2015.
Mr Kan said that development of broadband internet in remote areas could also help boost the income of people in the provinces and stimulate the country's economic growth.
He agreed that using e-commerce to sell agricultural products nationwide and to the world could raise incomes for the 30 million people in the farm sector.
Their income currently accounts for only 9% of GDP.
"It has already been proved that the high-speed internet in small communities in China can generate income for the community," Mr Kan said.
He also agreed that development of the Eastern Economic Corridor (EEC) will be an important engine for upgrading Thai industry and to encourage more high technology. In his view, the policy is impressive enough to attract foreign investors next year.
Mr Kan said significant projects such as the maintenance, repair and overhaul (MRO) facility at U-tapao airport, the digital park, the R&D centre and infrastructure projects to facilitate investors are being planned and developed in the EEC.
Nonetheless, he urged all parties to strive for peace in Thai politics and ensure the success of the country's ambitious reforms.