Thailand Self-Assessment Report & Best Practice Daegu Initiative First-Cycle Assessment Workshop June 7, 2010 Hong Kong, China Sonthawan Supattaraprateep National Science and Technology Development Agency

Outline of Presentation Self-Assessment Report Best Practice 1 2

Reported by Office of Small and Medium Promotion (OSMEP) Thailand Thailand Self-Assessment Report Reported by Office of Small and Medium Promotion (OSMEP) Thailand

Self-Assessment Report Area A: Developing human resources and technology through linkage between industry and educational and research institute Area B: Access to specialist assistance and advice Area C: Enhancing availability of capital to innovative SMEs Area D: Network and Clustering for innovative SMEs Area E: Establishing appropriate legal and regulatory structure Area F: Market consistent economic environment Area G: Developing methodologies for effectively measuring progress in the implementation of innovation programs for SMEs

Area A: Developing human resources and technology through linkage between industry and educational and research institute Related educational institutions, agencies in government and private sectors and R&D institutions collaborate with entrepreneurs in providing major science and IT services. Establishing Technology Licensing Office (TLO) can be relevant policy measure. Create the motivation for an entrepreneur, such as presenting the example of successful entrepreneurs, providing the business information, supporting the winner of business plan contest, offering tax waive for recently started business, and preparing to be an entrepreneur via SMEs incubation system and SMEs course development (SMEs University) Knowledge transfer for the existing SMEs entrepreneurs in the pattern of training, seminar and education, both knowledge of business management and specialized knowledge, namely intellectual property, export, security system for business in terms of occupational health, safety and labor law, skill and expertise development for entrepreneurs and employees in SMEs, to enhance their competency and expand the business

Area B: Access to specialist assistance and advice In developing the database on macro economy for SMEs, academician and relevant parties can indicate the effectiveness of Thailand, including database program for calculating industrial dimension index, system for industrial IT and facility for entrepreneurs. The knowledge of business tax is also transferred to entrepreneurs via website. Develop a machine prototype under reverse engineering concept for SMEs establishment in production sector. Provide consultancy and business competitive diagnosis as well as improve the working process by using environmentally friendly technology and machine development, including the development of new product design and standard guarantee for SME entrepreneurs in production sector.

Area C: Enhancing availability of capital to innovative SMEs In 2009, the collected information revealed that money institutions that specially offers SME loan are SME Bank, Government Savings Bank and Bank for Agriculture and Agricultural Co-operative, with the total loan amount of 59.5 billion baht for entrepreneurs. In 2009, 58.002-billion-baht loan was approved. Regarding the loan guarantee service implemented by Small Industry Credit Guarantee Corporation (SICGC), the guarantee amount In 2009 was 30 billion baht. Currently, 6.223 billion Baht was spent and 2,148 entrepreneurs were guaranteed.

Area D: Network and Clustering for innovative SMEs Supportive strategy for SMEs in major regions includes promoting cluster linkage to create value chain in branches with strong potential and encouraging the assembly/linkage of community enterprise by strengthening the existing cluster that was developed in a certain level, promoting continuous cooperation, and encouraging the creation of new potential cluster, including the linkage between production and marketing as well as linkage with large enterprise or export in order that entrepreneurs can share the task by individual expertise, exchange the knowledge and experience, and create business opportunity. Cluster development: According to the study as the guideline for developing potential cluster in several regions countrywide, cluster in the targeted industries in nine areas of regions can be divided into: Rice Tourism Textile Rubber Fruit Auto parts Logistics Information Technology Dock and shipyard Ceramics Sa paper Jewelry Construction and decoration materials Furniture, including rubber wood furniture New entrepreneurs can prepare themselves via SME incubation system and course development in business conduct (SMEs University) and are provided with significant SMEs knowledge, such as management, export, good governance recognition, safety and occupational health as well as specialized knowledge in each field.

Main information derives from Area G: Developing methodologies for effectively measuring progress in the implementation of innovation programs for SMEs Main information derives from National Science Technology and Innovation Policy Office (STI), National Science and Technology Development Agency (NSTDA), National Innovation Agency (NIA) and Thailand Institute of Scientific and Technological Research (TISTR). OSMEP is a planning unit on SMEs promotion in Thailand National Science Technology and Innovation Policy Office (STI) is the subordinate unit of Ministry of Science and Technology (MOST). It gathers data, presents policies as well as monitor and evaluate Thailand’s and business sector’s outcome of technology and innovation support Many projects are the international collaboration on technology and innovation , especially the one between foreign countries and educational institutions, Thailand Institute of Scientific and Technological Research (TISTR), Software Industry Promotion Agency (SIPA).

Thailand Best Practice : iTAP : Industrial Technology Assistance Program Sonthawan Supattaraprateep National Science and Technology Development Agency

Organization structure NSTDA: National Science and Technology Development Agency BIOTEC: National Center for Genetic Engineering and Biotechnology MTEC: National Metal and Materials Technology Center NECTEC: National Electronics and Computer Technology Center NANOTEC: National Nanotechnology Center TMC : Technology Management Center iTAP: Industrial Technology Assistance Program

iTAP Operation Model Competitiveness Knowledge Company’s Provider “ITAP : A Tool for Technology Transfer…… Linkage Knowledge to Enhancing Industry’s Capability” Competitiveness Local Experts Innovative & Competitive Overseas Experts Finance Regulation Knowledge Provider Consultants Company’s Needs TECHNOLOGY Market Research Institutes Management Universities Human

Mechanisms of iTAP iTAP mechanism Feasibility study Information services Seminar/ workshop Technology acquisition Diagnose problem & needs Meeting/ Brainstorm iTAP mechanism Techno- business matching In-depth consultancy Enhance Linkages & network Industrial needs consultancy Key mechanism Like to other Private support program supportive mechanism

Where we want to go? Advanced Level Create innovation Labor Intensive Skill Intensive Technology Intensive R&D Advanced Level Create innovation (create new ideas) Intermediate Level Upgrade technology (design) Basic Level Day-to-Day problem solving (cost reduction, productivity)

Target Industry R&D Intensive Technology Intensive Skill Intensive Labor Intensive Skill Intensive Technology Intensive R&D Intensive Medical & Health Software Energy & Environment Automotive (plastic metal rubber chemical) Wood & Furniture Food & Agro-industry Textile

iTAP Profile VISION MISSION Core Value Industrial Technology Assistance Program : iTAP To be the National technology solution support program for helping real sector by introducing & value creating of technology-based products, processes and services VISION To enhance & strengthen innovative competitiveness of real sector especially for SMEs and Industrial cluster To support technology transfer both from “Market to Lab” and from “Lab to Market” To operate as national networks with qualified, knowledgeable & experienced staff MISSION Client focus Excellence in Delivery Networking Core Value

iTAP networks across Thailand NSTDA KMUTT SUT NN-NSTDA WU PSU KKU TGI MSU UMU Central -NSTDA at Thailand Science Park (Pathumthani) North NSTDA Northern Network (Chiangmai) South Walailuk University (Nakorn Sri Thammarat) -Prince of Songkhla University (Songkhla) Northeast Suranaree University of Technology (Nakorn Ratchasima) Khon Kaen University (Khon Kaen) Mahasarakarm University (Mahasarakarm) Ubon Ratchathani University (Ubon Ratchathani ) West -King’s Mongkut University of Technology Thonburi (Bangkok) East Thai-German Institute (chonburi) Existing ITAP networks ITAP Head Quarter

Key Performances of iTAP support SME Contact SMEs ~15,000 companies Preliminary analysis 3,687 companies Develop techno. Technology Based Project (new) 2,377 projects Technology Acquisition 72 trip 986 companies HRD in SMEs Training/Seminar 585 courses 22,273 person As of March 31, 2010 18

iTAP Performances & Resources 2006-2010 (Q2) 19 Technology Development Project Budget Staff person Million Baht No. of Projects As of Mar 31, 2010

iTAP Statistical Report 2006-2010 (Q2) Location Project Investment

iTAP Statistical Report 2006-2010 (Q2) 21 Type of Project Industry

Achievement: Innovative SMEs 22

Thank you Do Dare Difference iTAP: We care, We share, We dare to do. Dream Thank you iTAP: We care, We share, We dare to do.