Thailand's research-and-development effort received a major shot in the arm recently when the Cabinet resolved to nearly double the budget of state-run R&D institutes, raising expenditure to a total of Bt69 billion over the next three years.

That makes about Bt23 billion per year, up from an estimated Bt12 billion spent annually over the previous decade. The country's R&D spending will rise from 0.26 per cent to 0.5 per cent of gross domestic product.

"It's a landmark decision," says National Research Council of Thailand (NRCT) secretary-general Ahnond Bunyaratvej, adding that if the new policy is successfully executed, the number of researchers in Thailand will nearly triple, from 2.9 to 8.0 researchers per 10,000 people, by the end of 2010.

Ahnond says this should serve as a springboard for the country to upgrade its international competitiveness, especially in terms of commercialising indigenous research.

"Basic research projects will be decreased from around 50 per cent to just 30 per cent, while those for applied research will be significantly increased," he says.

Thailand's competitiveness on global markets has recently been declining due to several factors, including the baht's appreciation against the US dollar.

According to the International Institute for Management Development in Switzerland, Thailand was one of only 15 nations out of a total of 55 that lost ground in its globally recognised World Competitiveness Yearbook 2007. Thailand's ranking fell sharply from 29th in 2006 to 33rd.

The institute says Thailand faces a number of challenges this year: creating and restoring the confidence of both domestic and foreign investors, improving logistics costs, building "intermediate infrastructure" through human-resource development and retrained labour, and improving laws and regulations. Another of its challenges lies in improving the competitiveness of its industries.

Low investment by companies in R&D has been cited as a stumbling block for Thailand in improving its competitiveness. While universities are regarded as one of the main engines of R&D in developed countries, only a tiny portion of university research in Thailand has close links with private enterprise.

To promote investment in R&D, the Finance Ministry has offered tax incentives for corporate spending in this area, and the Cabinet's decision to raise state spending should increase awareness.

The national R&D policy is being implemented not only by the National Research Council, but also by the Thailand Research Fund (TRF) and the National Science and Technology Development Agency (NSTDA).

At NSTDA, a "research-commercialisation" unit - the Technology Management Centre (TMC) - was set up recently to ensure that money is made not only from new state research projects, but also from those of earlier years.

The centre will have a wide range of research works on its hands, including projects in biotechnology, electronics and computer science, nanotechnology, metal and materials technology. It is currently applying for 280 patents on new inventions and products.

"There are three types of research commercialisation," says the centre's director, Chatchanart Theptharanon.

"Firstly, we allow the private sector to use our patents based on a benefit-sharing arrangement. Secondly, we encourage our researchers to set up their own businesses to commercialise their work. And thirdly, we enter into joint ventures with the private sector.

"An example of the first type is a new wrapping film for the food industry that could prolong the life-span of perishable produce. The second type applies especially to electronics, information technology and computer software. We have researchers who have had spin-offs in the IT sector.

"The third type of commercialisation is good for proven technology such as solar cells, in which the Technology Management Centre can seek partners for large-scale investment and manufacturing," she says.

The centre's responsibilities do not end with creating new products out of the lab. As well, it will seek to turn market demand into new research projects.

The Thailand Research Fund, which provides funding to all kinds of research - except that funded by the other state institutes - regards commercialisation as a critical part of the entire R&D process.

"Linkages are very important in this field in order to ensure the matching of supply and demand," says the fund's director, Piyawat Boonlong.

Earlier this year, the fund approved a new project worth Bt230 million, proposed by the Industry Ministry. It will provide funding to university students to conduct research into real-life problems in a wide range of industries.

"Entrepreneurs, industrialists and businessmen are expected to get some practical solutions out of this scheme, while students will have real-life experience and may even get jobs after graduation.

"In other words, we're trying to create linkages between industries and educational institutes," Piyawat says.

The project will focus on small and medium-sized enterprises, with funding available for 1,000 bachelor's degree students, 250 master's degree students and 30 PhD students in the first year.

Besides the manufacturing and industrial sectors, the project will also offers funds to university-based research in the agricultural and cultural fields. In agriculture, the research focus is on farm-management technology, covering not only operating technology, but also marketing, logistics and transportation.

In the cultural field, Piyawat says the "Thainess" concept should be promoted in overseas markets in a fashion similar to the export of Korean culture, through TV series and other cultural assets.

"Our potential products are large in number," he says. "We could be successful with Thai films or Thai-styled spas. It's time to focus."

Kamol Sukin

The Nation