The plan is being drawn up by the Industry Ministry in conjunction with the Science and Technology Ministry.

Kosit said the plan needed cooperation from bodies in the public sector in order to solve two weak points in the industrial sector: scientific knowledge and innovation.

"We have a lack of research and development [R&D] in the industrial sector, which will make us lose competitiveness with other countries in the future," he said. "The hope is that this plan will promote cooperation between business and educational institutes in the long run."

One of the plan's goals is to have at least 35 per cent of Thai manufacturers adopt more advanced technology - a big increase on the current figure of only 6 per cent. Moreover, manufacturers will have to work more closely with educational institutions and researchers to bring out new technologies and products.

The most important goal is to raise Thailand's standing in the R&D rankings by the International Institute for Management Development from 53rd to 35th in five years, he said. The ministry plans to achieve all three goals in five years, Kosit added.

Kosit said Thailand formerly promoted investment in the manufacturing sector. Now the plan will focus on boosting production efficiency in the industrial sector.

"If our industries have good efficiency, our competitiveness against other countries in the industrial sector will be also be hiked," he said.

He said the Board of Investment would attract operators to invest in R&D by providing tax incentives for eight years.

Chalida Ekvitthayavechnukul

The Nation