How Thailand Can Put Indigenous Innovation On The Agenda

[webfact]

CHINA BUSINESS WEEKLY

How Thailand can put indigenous innovation on the agenda

Suwatchai Songwanich

Chief executive Officer,

Bangkok Bank (China)

BANGKOK: -- With the global economy still weak and domestic industries around the world feeling the strain, it is unsurprising that there have been moves internationally to try to curb or penalize Chinese imports by toughening up trade policies. The key targets so far have been solar panel producers and auto parts manufacturers which have been putting pressure on the European and American industries.

In September the European Commission launched an investigation into dumping allegations against China by European manufacturers of solar panels. The same month, the United States said it would launch a complaint with the World Trade Organization (WTO) about Chinese subsidies for automobiles and car parts. India is also considering imposing anti-dumping duties on China, Malaysia and Taiwan.

In response, China has filed a counter complaint with the WTO, saying that America's action lacks transparency and threatens China's export trade with that country, worth about $7.2 billion a year. And a Chinese delegation went to Europe to discuss the European Commission probe, later indicating that the discussions were promising.

Even if these cases never proceed, China must certainly be considering taking steps to protect its own industries. One way of avoiding future heavy penalties is to move production facilities offshore. Since Thailand is the largest solar panel producer in ASEAN and the largest auto parts manufacture, Thailand would be a prime destination.

Pleasingly, Thailand's Board of Investment has made alternative and renewable energy a priority industry and earlier this year the Thai government signed a cooperative agreement with China in telecommunications, technology, energy and agriculture.

However, instead of just providing a base for Chinese producers to put a "Made in Thailand" tag on their products, Thailand should make the most of this opportunity by trying to achieve transfers of technology from China to Thailand as part of an investment package.

This will certainly be easily understood by China where a determined approach to technology transfer is actively driven by the government. Plans to develop specific technologies have become an integral part of China's five-year plan, and the government is also running a campaign to promote indigenous innovation as part of its goal to become a technology powerhouse by 2020 and a global leader by 2050.

The concept was launched in 2006 with the "Medium and Long-Term Plan for Science and Technology Development (MLP)" plan. This identified four basic research programmes and 27 breakthrough technologies to be promoted including high-speed rail, robotics and electric cars. Foreign investors competing for government contracts and subsidies were even required to transfer their proprietary technology and IP to their Chinese partners, until later forced by outside pressure to stop this practice.

While not advocating that Thailand should attempt anything as draconian, it is definitely timely for Thailand to develop its own indigenous innovation policy. This will help it to make use of the upcoming opportunities and ensure that technology transfer and sustainable growth become an integral part of new foreign investment.

-- The Nation 2012-10-15

[noitom]

This is a subtle proposal to "circumvent and sabotage" Europe's and the United States' efforts to bring China's outsourced manufacturing into line with global interests. China and Thailand along with India and other Asian countries have been doing a landmine business developing their economies on the back of cheap unregulated and often illegal labor. for many decades. Diluting the economies of Europe and the US. It's time for them to give back and build their own domestic economies instead of continuing to "profiteer" from the US and Europe.

China can and will evolve to a service economy. They have the intellectual capital, the work ethic, and a controlled authoritarian government. China doesn't need "through the back door" and "under the table" place like Thailand offering to "broker" its sustained production facilities to circumvent Europe and US trade watchdogs and regulators.

Thailand should polish up its temples, invest in cleaning up its sex trade venues, stop illegal copying of merchandise and intellectual property and go back to its knitting. Temple and elephant tours and sex trade. This is what Thailand is good at. The only reason it makes money in tuna fish is illegal, sweat shop, child and illegal immigrant labor. Most of Thailand is a "black economy," and it should keep on doing what it does best and stop making offers to promote its corrupted environment to the Chinese with some back door scheme.

[hellodolly]

Well it dosen't say much for Thailand with this statement

"However, instead of just providing a base for Chinese producers to put a "Made in Thailand" tag on their products, Thailand should make the most of this opportunity by trying to achieve transfers of technology from China to Thailand as part of an investment package."

That is the only way Thailand will achieve new technology with there current education system. Even if they some how come up with tablets for every student. Which at the moment is looking pretty dubious.

[cloudhopper]

"Technology transfer" is code for copying someone else's innovation exploiting cheaper labor. "Indigenous innovation" will never be a feature here until education replaces cultural indoctrination, students are allowed to ask questions and think critically and creatively.

[asiawatcher]

Next article please...

[Thai at Heart]

Since when is Chinese technology transfer, indigenous innovation?

[brianP]

Yes it undermines the Be Thai ,buy Thai,and help Thailand strategy, and with China still devaluing its yuan,and buying up all resources it needs these dumping grounds, outsourced America is finally trying to balance the one sided trade China enjoys everywhere. But soon China will provide only for itself and take the bankrupt country's exported dumpings.

[FarangTalk]

Since when is Chinese technology transfer, indigenous innovation?

Misappropriating to seek self-enrichment is considered innovative here.

They have been doing it for hundreds of years with their culture, sports and language.

[jaltsc]

Perhaps the only Thai businesses which will prosper are those producing "Made In Thailand" labels.

[chiangmaikelly]

This is a subtle proposal to "circumvent and sabotage" Europe's and the United States' efforts to bring China's outsourced manufacturing into line with global interests. China and Thailand along with India and other Asian countries have been doing a landmine business developing their economies on the back of cheap unregulated and often illegal labor. for many decades. Diluting the economies of Europe and the US. It's time for them to give back and build their own domestic economies instead of continuing to "profiteer" from the US and Europe.

China can and will evolve to a service economy. They have the intellectual capital, the work ethic, and a controlled authoritarian government. China doesn't need "through the back door" and "under the table" place like Thailand offering to "broker" its sustained production facilities to circumvent Europe and US trade watchdogs and regulators.

Thailand should polish up its temples, invest in cleaning up its sex trade venues, stop illegal copying of merchandise and intellectual property and go back to its knitting. Temple and elephant tours and sex trade. This is what Thailand is good at. The only reason it makes money in tuna fish is illegal, sweat shop, child and illegal immigrant labor. Most of Thailand is a "black economy," and it should keep on doing what it does best and stop making offers to promote its corrupted environment to the Chinese with some back door scheme.

Nothing wrong with clean sex. Put me down. I'll help.

[MEL1]

This is a subtle proposal to "circumvent and sabotage" Europe's and the United States' efforts to bring China's outsourced manufacturing into line with global interests. China and Thailand along with India and other Asian countries have been doing a landmine business developing their economies on the back of cheap unregulated and often illegal labor. for many decades. Diluting the economies of Europe and the US. It's time for them to give back and build their own domestic economies instead of continuing to "profiteer" from the US and Europe.

China can and will evolve to a service economy. They have the intellectual capital, the work ethic, and a controlled authoritarian government. China doesn't need "through the back door" and "under the table" place like Thailand offering to "broker" its sustained production facilities to circumvent Europe and US trade watchdogs and regulators.

Thailand should polish up its temples, invest in cleaning up its sex trade venues, stop illegal copying of merchandise and intellectual property and go back to its knitting. Temple and elephant tours and sex trade. This is what Thailand is good at. The only reason it makes money in tuna fish is illegal, sweat shop, child and illegal immigrant labor. Most of Thailand is a "black economy," and it should keep on doing what it does best and stop making offers to promote its corrupted environment to the Chinese with some back door scheme.

"China can and will evolve to a service economy."

Maybe, but do you discount the production facilities as ending purely in 'service industries'?

-mel.

[johna]

This was the hot topic after the 1997 financial crisis, sustainable economy, moving Thailand up the technological ladder etc, if the Chinese government is subsidizing its home industry it is not going to allow those industry's to move offshore.

Unemployment is a crucial issue for the Chinese government.

[chiangmaikelly]

"Technology transfer" is code for copying someone else's innovation exploiting cheaper labor. "Indigenous innovation" will never be a feature here until education replaces cultural indoctrination, students are allowed to ask questions and think critically and creatively.

Do students ask questions in Japan and China?

[Thai at Heart]

"Technology transfer" is code for copying someone else's innovation exploiting cheaper labor. "Indigenous innovation" will never be a feature here until education replaces cultural indoctrination, students are allowed to ask questions and think critically and creatively.

Do students ask questions in Japan and China?

Not to say that the Chinese haven't improved any of the transferred technology they got, but by the time it will get to Thailand, in say, the train industry, it will actually be third hand technology and based on stuff that was transferred into China 10 to 15 years ago.

[chiangmaikelly]

"Technology transfer" is code for copying someone else's innovation exploiting cheaper labor. "Indigenous innovation" will never be a feature here until education replaces cultural indoctrination, students are allowed to ask questions and think critically and creatively.

Do students ask questions in Japan and China?

No students don't ask questions in Japan or China so there goes that argument.

[chiangmaikelly]

"Technology transfer" is code for copying someone else's innovation exploiting cheaper labor. "Indigenous innovation" will never be a feature here until education replaces cultural indoctrination, students are allowed to ask questions and think critically and creatively.

Do students ask questions in Japan and China?

Not to say that the Chinese haven't improved any of the transferred technology they got, but by the time it will get to Thailand, in say, the train industry, it will actually be third hand technology and based on stuff that was transferred into China 10 to 15 years ago.

The new factories being built in Thailand by GM, Ford and Mercedes have first hand new technology. So there goes that argument.

[rubl]

BTW did minister of Science and Technology Plodprasop apply for copyright registration on his 'water pushing' machines ? We wouldn't like other countries to copy that without paying licensing fees, now would we ?

[cloudhopper]

"Technology transfer" is code for copying someone else's innovation exploiting cheaper labor. "Indigenous innovation" will never be a feature here until education replaces cultural indoctrination, students are allowed to ask questions and think critically and creatively.

Do students ask questions in Japan and China?

No students don't ask questions in Japan or China so there goes that argument.

What argument - the one you are having with yourself? How much indigenous innovation has ever happened anywhere in the Orient? Creativity and critical thinking are just not part of the culture.

Edited October 16, 2012 by cloudhopper

[chiangmaikelly]

"Technology transfer" is code for copying someone else's innovation exploiting cheaper labor. "Indigenous innovation" will never be a feature here until education replaces cultural indoctrination, students are allowed to ask questions and think critically and creatively.

Do students ask questions in Japan and China?

No students don't ask questions in Japan or China so there goes that argument.

What argument - the one you are having with yourself? How much indigenous innovation has ever happened anywhere in the Orient? Creativity and critical thinking are just not part of the culture.

Domestication of wheat and peas, Domestication of sheep, Domestication of cats, Domestication of cattle, Invention of pottery, Weaving of the first cloth, Domestication of chickens, Discovery of alcoholic drinks, Domestication of rice, Invention of the Wheel.

Invention of silk cloth, Invention of written language, Invention of glass, Invention of soap, Invention of ink, Invention of the parasol, Invention of irrigation canals, Invention of cartography (map-making), Invention of the oar, Invention of the kite.

Invention of the collapsible umbrella, Invention of the crossbow, Invention of the mirror, Invention of ice cream, Invention of paper, Invention of the wheelbarrow, Invention of the seismometer, Invention of the abacus, Invention of saddles and stirrups, Invention of Indo-Arabic numbers.

Invention of toilet paper, Invention of chess, Invention of perfume, Invention of porcelain, Invention of gunpowder, Invention of the windmill, Invention of the flamethrower, Invention of canal locks, Invention of the hypodermic needle, Invention of the mechanical clock.

Invention of the magnetic compass, Invention of paper money, Invention of metal movable type, Invention of the land mine, Invention of the toothbrush, Invention of the satellite, Invention of the washlet bidet, Invention of the PC sound card, Invention of the PlayStation game device.

Edited October 16, 2012 by chiangmaikelly

[madmitch]

How can you develop an indigenous innovation strategy overnight? Thailand is the hub of copying everyone else.

[EvilDrSomkid]

CMK, you have been reading Guns, Germs and Steel, haven't you?

[Thai at Heart]

"Technology transfer" is code for copying someone else's innovation exploiting cheaper labor. "Indigenous innovation" will never be a feature here until education replaces cultural indoctrination, students are allowed to ask questions and think critically and creatively.

Do students ask questions in Japan and China?

Not to say that the Chinese haven't improved any of the transferred technology they got, but by the time it will get to Thailand, in say, the train industry, it will actually be third hand technology and based on stuff that was transferred into China 10 to 15 years ago.

The new factories being built in Thailand by GM, Ford and Mercedes have first hand new technology. So there goes that argument.

Indeed. What does that have to do with planning to enable technology transfer with Chinese State Corporations? So, there goes that argument. It worked for China, because for companies to enter the Chinese market, they were initially largely doing business with companies where the Chinese government had a large stake, or were government entities themselves.

To whom exactly is an international corporation going to be compelled to pass its technology in Thailand? Another private Thai firm? Of course, the concept of saying that if Siemens wants to say supply trains to the Chinese government, that they had to manufacture in China, and enter into a joint venture with the Chinese State Rail so that the Chinese could quickly learn how to make their own trains is not an original idea.

The thing is, just about anything in the world can be reverse engineered these days if you put enough time and effort into it, so compulsory technology transfer has lost its way. Beyond that, Thailand has its own private players in many markets, but the Chinese products in say solar panels have surpassed a lot of what is made in Thailand already, and of course they have access to gargantuan amounts of Chinese state funding and hardly a shortage of well qualified engineers to come up with improvements. What China lacks quite yet is global branding. Saying that Thailand is the largest manufacturer of solar in Asean is true, but the Chinese solar manufacturers dwarf the capacity and technology in Thailand.

You can try to force Mercedes,Toyota, or a Chinese corp into technology transfer with a Thai company, and they will simply invest elsewhere. There are hundreds of ways around technology transfer. MNC;'s were willing to put up with it to a certain level in China because they value of entry to the potential market of 1bn consumers was worth it. Thailand with 60mn and Asean with Proton hiding behind duties etc, isn't worth the cost of passing all your know how. In fact they already have it in a way, with restricted industries and compulsory 51:49 partnerships in industry already. The Thai's bring the access to the market, the farangs bring the technology and the clients.

How may people outside world search out intentionally a Huawei phone as yet?

Edited October 16, 2012 by Thai at Heart

[cloudhopper]

Domestication of wheat and peas, Domestication of sheep, Domestication of cats, Domestication of cattle, Invention of pottery, Weaving of the first cloth, Domestication of chickens, Discovery of alcoholic drinks, Domestication of rice, Invention of the Wheel.

Invention of silk cloth, Invention of written language, Invention of glass, Invention of soap, Invention of ink, Invention of the parasol, Invention of irrigation canals, Invention of cartography (map-making), Invention of the oar, Invention of the kite.

Invention of the collapsible umbrella, Invention of the crossbow, Invention of the mirror, Invention of ice cream, Invention of paper, Invention of the wheelbarrow, Invention of the seismometer, Invention of the abacus, Invention of saddles and stirrups, Invention of Indo-Arabic numbers.

Invention of toilet paper, Invention of chess, Invention of perfume, Invention of porcelain, Invention of gunpowder, Invention of the windmill, Invention of the flamethrower, Invention of canal locks, Invention of the hypodermic needle, Invention of the mechanical clock.

Invention of the magnetic compass, Invention of paper money, Invention of metal movable type, Invention of the land mine, Invention of the toothbrush, Invention of the satellite, Invention of the washlet bidet, Invention of the PC sound card, Invention of the PlayStation game device.

Wow 50 innovations by the oldest and most populous region in the world, that must be what fraction of one percent of similarly important innovations in the last 250 years in the West?

[chiangmaikelly]

Domestication of wheat and peas, Domestication of sheep, Domestication of cats, Domestication of cattle, Invention of pottery, Weaving of the first cloth, Domestication of chickens, Discovery of alcoholic drinks, Domestication of rice, Invention of the Wheel.

Invention of silk cloth, Invention of written language, Invention of glass, Invention of soap, Invention of ink, Invention of the parasol, Invention of irrigation canals, Invention of cartography (map-making), Invention of the oar, Invention of the kite.

Invention of the collapsible umbrella, Invention of the crossbow, Invention of the mirror, Invention of ice cream, Invention of paper, Invention of the wheelbarrow, Invention of the seismometer, Invention of the abacus, Invention of saddles and stirrups, Invention of Indo-Arabic numbers.

Invention of toilet paper, Invention of chess, Invention of perfume, Invention of porcelain, Invention of gunpowder, Invention of the windmill, Invention of the flamethrower, Invention of canal locks, Invention of the hypodermic needle, Invention of the mechanical clock.

Invention of the magnetic compass, Invention of paper money, Invention of metal movable type, Invention of the land mine, Invention of the toothbrush, Invention of the satellite, Invention of the washlet bidet, Invention of the PC sound card, Invention of the PlayStation game device.

Wow 50 innovations by the oldest and most populous region in the world, that must be what fraction of one percent of similarly important innovations in the last 250 years in the West?

If you live in Asia or have Asian children you should really take some courses about history. It is not my job to educate but you are really living up to the bad parts of the word Farang. And it makes me realize why the Japanese were so up set before the start of WW II.