Incentives to push R&D development in key areas

The government yesterday approved tax incentives to companies that group together to invest more in research and development in five business areas.

Deputy Prime Minister Prajin Juntong said the National Policy Council for Research and Innovation, chaired by Prime Minister Prayut Chan-o-cha, yesterday gave the nod to a proposal from the Pracha Rat (People’s State) steering committee on research and development to allow companies that group together to claim deductions for R&D expenses of 300%, up from 200%, if they invest more in five business areas. The R&D committee is co-chaired by Kan Trakulhoon, the former president of Siam Cement Group.

The five business areas are food, agriculture, biotechnology; public health, healthcare and biomedical technology; robotics and smart devices; digital, Internet of Things and artificial intelligence; and creative economy, culture and lifestyle.

The incentives will be offered from 2017 to 2019.

But ACM Prajin said similar incentives on offer between 2016-20 to individual companies remain effective.

In a related development, Kittipong Promwong, secretary-general to the National Science Technology and Innovation Policy Office (STI), said an STI survey had found the country’s spending on R&D in 2015 accounted for 0.62% of GDP. Of that, 30% or 25.2 billion baht came from the government sector and 70% or 59.5 billion was from the private sector.

He said R&D expenditure in 2016 was estimated at 0.75% of GDP and is expected to increase to 0.8% of GDP in 2017.

R&D expenditure is expected to total 1% of GDP — the previous target for this year — in 2018, he said.

The Science and Technology Ministry is conducting a study on a 20-year strategy for R&D and innovation. The National Policy Council for Research and Innovation has demanded the study be completed in the next 2-3 months.

Mr Kittipong said the council has also agreed to establish six working panels to stimulate and promote spending on R&D.