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Thailand and Its Knowledge Economy. Arkhom Termpittayapaisith Deputy Secretary-General, Office of the National Economic and Social Development Board, Thailand. Development Paradigm. Old Paradigm. Low Labor Cost Abundant Natural Resources. Unsustainable Dev. New Paradigm.

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Thailand and its knowledge economy l.jpg

Thailand and Its Knowledge Economy

Arkhom Termpittayapaisith

Deputy Secretary-General, Office of the National Economic and Social Development Board, Thailand.


Development paradigm l.jpg

Development Paradigm

Old Paradigm

Low Labor CostAbundant Natural Resources

Unsustainable Dev.

New Paradigm

Knowledge + Labor + NR

SustainableDev.


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Knowledge Economy: Where Does Thailand Stand?

1.Economic competitiveness: technological and scientific capabilities

-WEF Ranking

-IMD Ranking

2. Knowledge economy: Knowledge Assessment Methodology (KAM)


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World Economic Forum (WEF) Technology and Innovation Indicators

InnovationIndex

Technology Readiness index

Technology Transfer

Japan52-

Korea816-

Singapore137-

Malaysia40151

Thailand43395

China756843

Source :WEF 2005 and 2006


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IMD Science and Technology Assessment

’97

32

32

47

’98

43

43

47

’99

47

48

47

’00

47

47

47

’01

48

49

49

’02

43

46

49

’03

20

26

30

’04

45

55

60

’05

45

56

60

’06

48

53

61

Infrastructure

Technological Infrastructure

Scientific Infrastructure

Numbers of Countries

Assessed

Source: IMD, various years.


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Knowledge Assessment Methodology (KAM)

  • KAM is based on the four of pillars of KE developed by the World Bank Institute (WBI) that are

    (1) economic and institutional regime,

    (2) educated and skilled population,

    (3) national innovation system, and

    (4) dynamic information infrastructure.

  • KAM is designed to help countries assessing their strengths and weaknesses in making transition to knowledge economy.


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Thailand’s KEI increasing from 4.26in 1995 to 4.78 in 2002

Source: Dahlman (2003)


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Selected 14 Variables from KAM(Detailed Analysis)

Overall Performance of the Economy

GDP Growth

Poverty Index

Economic Incentive & Institutional Regime

Soundness of Banks

 Intensity of Local Competition

Government Effectiveness

Innovation System

  • Researchers in R&D Per Million Population

  • Total Expenditure for R&D as % of GDP

  • Research Collaboration (UILs)

Education &Human Resources:

Average Years of Schooling

Professional &Technical Workers (% of Labor Force)

Quality of Science & Math Education

ICT

Internet Users Per 10,000 People

E-Govt services

ICT Expenditure as % of GDP


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KAM Spidergram for Thailand, Japan, Korea and China

Source: The World Bank Institute (2006)


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Thailand, KAM Spidergram for Selected Variables of Innovation Pillar

Source: The World Bank Institute (2006)


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Selected Indicators: Measures of Innovation

  • Educational Attainment of Thai Population and Workforce

  • Quality of the Educational Outputs

  • R&D Expenditure and Patents


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Educational Attainment

Country

Mean Years of School

No Schooling(% of pop. agedover 15)

Thailand6.512.6

Korea10.846.5

Malaysia6.816.2

Singapore7.0516.4

Taiwan8.7610

Source: Barro and Lee (2000) and http://www.ksg.harvard.edu/CID


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Educational Attainment of Population: Thailand and Malaysia

Malaysia 2000

Thailand 2000

Source: Dahlman (2003).


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Thai labor force is not well educated

  • Educational Attainment of Employed Persons Aged Over 15

Source: National Statistical Office (2005), Report of the Labor Force Survey.


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Workforce Employed in Thai Business Enterprises is mostly Non S&T Classification.

Percentage of S&T and Non S&T Workforce Classified by Industry

Source: Thailand Research and Development Institute (2004).


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Thai secondary education students performed below average and poorly as compared with students in other East Asian countries.

Quality of the Educational Outputs

1995

1999

Country

Singapore

South Korea

Taiwan

Hong Kong

Japan

Malaysia

Thailand

Indonesia

Philippines

Math

608.6

580.7

568.9

581.1

516.2

Science

580.4

545. 8

509.7

554.5

510.1

Math

604.4

587.2

585.1

582.1

578.6

519.3

467.4

403.1

344.9

Science

567.9

548.6

569.1

529.6

549.7

492.4

482.3

435.5

345.2

Source: Trend in Mathematic and Science Study (TIMSS), as cited in the World Bank (2005).


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Thai students under the supervision of IPST were reported their great performance in Olympiad programme

Program for International Student Assessment (PISA) Score

2003

Japan

Korea

Hong Kong

Indonesia

Macao-China

Thailand

OECD Average

Math

553

552

558

361

528

424

496

Science

548

538

539

395

525

429

500

Reading

598

534

510

382

498

420

494

Source: Program for International Student Assessment (PISA), (OECD) as cited in the World Bank (2005).


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Thailand requires more national R&D spending

R&D spending, a more focus on research/knowledge commercialization through increased patenting and a more entrepreneurial dimension has to be in place

R&D Expenditure

(Million Bath)

R&D exp.

R&D exp. per capita (bath)

R&D exp. as % of GDP

Govt. budget outlays for R&D

1996

5,528.1

92.0

0.1

3,395.2

1999

5,021.7

81.3

0.12

2,182.7

2003

15,499.2

242.2

0.3

7,36460

Source: R&D Survey, NSO.


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R&D Expenditure classified by Field of Research and Sector of Performance

Business enterprises and higher education are key players in research and development

Source: R&D Survey, NSO.


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Patents per 100,000 Populations

% Change 1993-96-2001-04

1985-88

1993-96

2001-04

East Asia & Pacific

Taiwan,

China

Singapore

Hong Kong

Korea

Malaysia

Thailand

China

Philippines

Indonesia

OECD

United States

Japan

Australia

0.04

1.81

0.31

1.67

0.20

0.02

0.00

0.00

0.01

0.00

9.83

18.47

12.62

2.80

0.20

9.24

1.86

3.65

2.59

0.08

0.02

0.00

0.01

0.00

12.83

24.50

18.75

2.99

0.66

30.17

9.87

9.32

8.67

0.28

0.07

0.03

0.02

0.01

19.00

33.56

28.54

5.26

225.6

226.6

431.7

154.9

235.4

238.6

276.0

636.0

377.2

132.4

48.1

37.05

2.27

6.3

Source: US Patent and Trademark Office as cited in the World Bank (2006), East Asia Update.


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Government Policy in Enhancing Knowledge Economy

  • Development goals for S&T development in the 9thNational Economic and Social Development Plan

  • qualitative goals

  • Enhancing capability in technological innovation;

  • Setting up mechanisms and institutions for knowledge diffusion and knowledge transfer

  • Focusing on quality improvement for teaching in all S&T educational levels.

  • quantitative goals

  • Increasing R&D expenditure to be not less than 0.4 % of GDP

  • Increasing numbers of researchers to 3.5 persons per 10,000 populations.


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The National Science and Technology Development Agency (NSTDA)

Office of Knowledge Management and Development (OKMD) administers 7 offices :

1.Thailand Design Center, TDC;

2.Thailand Center of Excellence for Life Science;

3. National Center for the Gifted and Talented;

4. Thai Knowledge Park;

5. National Discovery Museum Institute;

6. Center for the Promotion of National Strength on Moral Ethics and Values;

7. National Institute for Brain-based Learning

National Innovation Agency

 Science Park

 Software Park

 Software Industry Promotion Agency (SIPA).

Role: stimulating technology development and providing incentive structure for a society of knowledge and innovativeness of the country.

Policy Implementations

Institutional arrangements in Thailand in relation to innovativeness and knowledge


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University and Industry Linkages (UILs)in Thailand

  • Prominent role of the university is put onto educating people while other roles are still at minimum.

  • Firms have generally not exhibited strong interest in UILs

  • Effective UILs are heavily tied with large firms such as large garment exporters, Seagate in hard disk drives, and the CP group in shrimps


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Thai firms and their major partners

Clients, parent/associate companies, local and foreign suppliers are major partners of Thai firm

R&D institutes and universities including government have played a minor role in building technology/innovation capabilities of firms.

Source: Based on Thailand National Science & Technology Development Agency R&D/Innovation Survey 2002, cited in Intarakumnerd (2005).


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Brief review of UILs in Thailand

  • Mitr Phol sugarcane research center has linkages with public technology institutions like National Science and Technology Development Agency, and MTEC more than those with university.

  • Toyota Technical Center—Asia Pacific (TTCAP) has had significant linkages and collaboration extending beyond the national boundary where the center is located. However, TTCAP is reported to have a simple network to recruit employees with Thai universities.

  • Seagate: Qualified engineers are produced in collaboration with Thai universities and the first joint Seagate/AIT academic course has been offered in the Master's program since 1999.

Sources: Brimble (2006), Asian Institute of Technology(2006).


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NSTDA : Major actor in national innovation system

  • The National Center for Genetic Engineering and Biotechnology (BIOTEC) has led the research in modern biotechnology that helped prevent disastrous losses in shrimp production,

  • The Cassava and Starch Technology Unit induces research and development for improvement in Thai cassava and starch, e.g. industrial application of cassava and starch in both food and non-food industries—process for the production of ethanol and renewable fuel (BIOTEC, 2006). ,

  • Set up the Software Park Thailand (SPT) one successful example that received strong support from well-known transnational corporations (such as IBM, HP, SUN, and ORACLE) and established collaboration with Canegie-Mellon university for offering training and certification on the Capability Maturity Model to raise the standard of software production of STP’s tenant companies (Virasa, 2005, p. 104)


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National Competitiveness Committee (NCC)

NESDB under NCC has set up action plans for human resource development in major industries

Petrochemical-industry group under the Thai Industry Federation, Petroleum Institute of Thailand, the Office of Vocational Education Commission and the NESDB have signed MOU for implementation of a pilot project on human resource development in petrochemical industry

The Constructionism-Chemical Engineering Practice School (C-ChEPS) was designed for improving skills of workers in petrochemical industry.

Training programmes under C-ChEPS was initiated in 2000 by a private corporation, the Siam Cement Group under a collaboration with the King Mongkut’s University of Technology Thonburi.


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Some Policy Recommendations:Given the framework of knowledge economy, Thailand’s innovation and education systems have confirmed the weakest arena among others.

  • Strengthening education system (i.e. education reform) and outputs to increase qualified workforce particularly in S&T skills, including putting in place incentives for firms in the-job training system;

  • Building new knowledge through basic research, R&D spending, technology transfer including developing strong linkages in universities, research institutes and firms (i.e. university-industry linkages) as foundation for knowledge generation and technology catching-up;

  • Ensuring sufficient incentives for firms to innovate in new products and processes for industry and services sectors, given new trend in technology and market demand;

  • Establishing S&T infrastructure (e.g. science parks, research funding, IT infrastructure etc.) and increasing private involvement in developing the knowledge economy.


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Thank you

www.nesdb.go.th


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