BOOST FOR RESEARCH
Government has allocated 2.5 billion baht for fiscal 2017 to support universities in conducting more R&D in five sectors.
The government has allocated 2.5 billion baht for fiscal 2017 to support universities in conducting more R&D in five sectors as part of its ongoing efforts to upgrade Thailand into a value-based economy under the Thailand 4.0 initiative.
The Prime Minister’s Office Minister Suvit Maesincee said funding will come from the state’s additional 190 billion baht mid-year budget for fiscal 2017, which is meant to spur upcountry growth.
Of the total 2.5 billion baht, 1.5 billion will be offered to 27 universities and 500 million each will specifically be allocated to Kasetsart and Mahidol universities.
Kasetsart University will be tasked with conducting R&D on biotechnology and Mahidol University will conduct R&D on biomedical technology.
“The government fully expects that more R&D in five sectors to help upgrade the country’s competitiveness,” he said. “And we believe existing government measures are enough to attract private investment in R&D from this year onwards.”
The cabinet last month approved tax incentives for companies that group together in clusters to invest in R&D in those five business areas.
Companies that group together will be eligible to claim deductions for R&D expenses of 300%, up from 200%, if they invest more in food, agriculture and 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. Similar incentives on offer during 2016-2020 to individual companies will remain in effect.
The government’s tax incentives could help stimulate expenditure in R&D to reach 1% of the country’s GDP in five years, or 130 billion baht.
R&D spending in 2015 accounted for only 0.62% of GDP. That figure was estimated at 0.75% in 2016 and is forecast to reach 0.8% in 2017.
The government has set an ambitious plan to raise domestic spending on R&D to 4% of GDP — on a par with developed countries — by 2036.
Under its 20-year plan, the government aims to raise R&D spending to 1% of GDP from 2017-21, 1.5% from 202226, 2% from 2027-31 and more than 2% from 2032-36.
The private sector will play a key part, with its spending estimated to account for 70% of the country’s R&D spending.