Technological Investment of Thai Industries and Government Supports

Abstract

^{This study investigates the behavior of Thai industries’ R&D and innovation (RDI) activities,
the technological investment, using the institutional framework in analyses. Using firm-level
data from Thailand’s R&D and Innovation activities survey from theIndustrial sector 2009,
the results show that most firms’ characteristic and business environment variablesare
significantly related to the probabilities of carrying out RDI activities. R&Dexpenditures can
be explained significantly by total sales, number of R&D staff, external cooperation with
business partners and with universities or public research institutes (PRI). Forinnovations, the
expenditures are significantlyrelated with more effect than on the R&D,to total sales and the
export portion, experiences, and results of former activities. Decisionson effort allocation of
firms’ R&D and innovation activities are different. Firms tend to carry out R&D onproducts
more than on only processes, or carry outboth. But for innovation activities, firms tend to
carry out both product and process innovation. Policy implications propose that government
should support firms by providing appropriate information, facilitating cooperation both
between the public to private sectors and among private firms, providing proper funding
mechanisms, and supporting other related technological activities.}