HOW TO IMPLEMENT “INNOVATION” IN CHIANGMAI , THAILAND WICHIEN CHERDCHUTRAKUNTONG WICHIEN CHERDCHUTRAKUNTONG R & DISC ( research & development and innovation service center, R & DISC ( research & development and innovation service center, The Federation of Thai Industry , Chiangmai chapter Thailand The Federation of Thai Industry , Chiangmai chapter Thailand 20 20 September 2006 September 2006 The Role of The Federation of Thai Industries The Role of The Federation of Thai Industries In Encouraging Innovation In Encouraging Innovation
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IN CHIANGMAI , THAILAND · The longan, knowninThaiaslamyai, also known as dragon's eye or eyeball. One of the prize fruits grown in northern Thailand.,esp. Chiangmai – Lamphun province.
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HOW TO IMPLEMENT “INNOVATION”IN CHIANGMAI , THAILAND
R & DISC ( research & development and innovation service center,R & DISC ( research & development and innovation service center,The Federation of Thai Industry , Chiangmai chapter Thailand The Federation of Thai Industry , Chiangmai chapter Thailand
2020 September 2006September 2006
The Role of The Federation of Thai Industries The Role of The Federation of Thai Industries In Encouraging Innovation In Encouraging Innovation
Growing the Chiangmai Innovation SystemChiangmai’s problem centripetal Forces
Value Creation Economy
Mass Production
identity skill knowledge+ +VALUE VALUE
CREATION ECONOMYCREATION ECONOMY
DifferentiateQuality of lifecreative
High volumeLow cost
Competition withChina ,Japan
&Korea
CONCEPTWHAT : INNOVATION; THE WAY TO CREATE COMPETITIVE ADVANTAGEWITH LOCAL WISDOM + NEW KNOWLEDGEWHY : why FTI INVOLVE IN INNOVATION ?
HOW TO : THE PROCESS TO CREATE SUCCESS
SUCCESS STORIES:• INNOVATIVE LONGAN FRUIT IN CHIANGMAI ,THAILANDCONCLUSION• KEY SUCCESS FACTORS IN MARKETS AND VALUE CHAINS
AS NEW THINGS DERIVED FROM THE EXPLOITSTION OF KNOWLEDGE AND CREATIVITY, LEADING TO ENHANCEMENT OF SOCIAL AND ECONOMIC VALUE
WHAT
WHY
CRISIS, SURVIVE AND SUSTAINABLE
EVOLUTION OF CHIANGMAI PRIVATE SECTOR IN INNOVATION MANAGEMENT
INNOVATION AND SURVIVAL OF THAI SMEs
CONFERENCE
CONFERENCE ON R&D for SMEs and SUPPORTING
ACTIVITIES STARTED
THE FIRST NNSPSME 3 YEARS PLAN DEVELOPED
THE 1ST CHIANG MAI INNOVATION FAIR AND
CONFERENCE LAUNCHED“AWARENESS”
1999
2000
2001
2002
THE 2nd CHIANG MAI INNOVATION FAIR AND
CONFERENCE LAUNCHED “INNOVATION: YOU CAN
DO”
GTZ SUPPORTS (1,000 EURO)
NATIONAL PRODUCTIVITY INSTITUTE SUPPORTED
(10,000 EURO)
2003
THAI PARLIAMENT SUPPORTS
(10,000 EURO)
SMEs CENTRE SUPPORTS(20,000 EURO)
THE 3rd CHIANG MAI INNOVATION FAIR AND
CONFERENCE LAUNCHED “INNOVATION: GATEWAY TO WEALTH CREATION”
2004
SMEs CENTRE SUPPORTS (18,000 EURO)
REGIONAL AND NATIONAL EXPANSION OF RDISC MODEL
INSTITUTIONALISATION and INTERNATIONALISATION of RDISC
2005
2006
2007
2020
CHIANG MAI INNOVATION CITY FULLY ESTABLISHED
THE 4th CHIANG MAI INNOVATION FAIR AND
CONFERENCE LAUNCHED “SUSTAINABLE INNOVATION”
THE 1st REGIONAL INNOVATION SURVEY IN THAILAND WAS LAUNCHED IN CHIANG MAI
JICA SUPPORTS(40,000 EURO)
Figure 6.4: CHRONICLE AND ROADMAP OF RESEARCH, DEVELOPMENT AND INNOVATION SERVICE CENTRE (RDISC) (1999 – 2020)
Note: Constructed from FTI and RDISC interviews and author’s approved consulting proposal to RDISC
CHIANG MAI INNOVATION CITY CAMPAIGN STARTED
ESTABLISHING OF “LANNA INNOVATION CENTRE”
ATTACHES TO UPPER NORTHERN CEO GOVERNOR ADMINISTRATION PLAN
NNSPSME = Northern Network of Service Providers for Small and Medium EnterprisesJICA = Japan International Co-operation Agency
: PROCESS OF INNOVATION INNITIATIVE ; NEW KNOWLEDGE + LOCAL WISDOM ( high-tech & high-touch)
SKILL
TECHNOLOGY
ValueREATION
social pricing value(value beyond economic pricing)
CULTURE ASSET
MAKE THE PRODUCT DIFFICULT TO COPY
+
+CREATIVE
CULTURE ASSET
The MOU of 16 Organizations
Different Participants
D/BR&D
HRD Network
ClusterMarketingBranding
Aware-ness
1 2 3 4 5
PROCESS OF INNOVATION INITIATIVE IN CHIANGMAI SINCE 1999
CAN WE BUILD VALUE CREATION IN PRODUCT & SERVICE
?rice
orchid
Knowledge
longan
SUCCESS STORIES:• INNOVATIVE LONGAN FRUIT IN CHIANGMAI ,THAILAND
• KEY SUCCESS FACTORS IN MARKETS AND VALUE CHAINS
Research Development and Innovation Service Center, Federation of Thai Industries – Chiang Mai Chapter.
CASE STUDY IN CHIANGMAI
INNOVATIVE LONGAN
LONGAN INNOVATION
Partners :
Research and Development and Innovation Service Center (R&DISC) , Federation of Thai Industries – Chiang Mai Chapter
German Technical Cooperation (GTZ)
National Innovation Agency (NIA)
and National Science and Technology Development Agency –Northern Network (NSTDA)
The longan, known in Thai as lamyai ,also known as dragon's eye or eyeball.One of the prize fruits grown in northernThailand.,esp. Chiangmai – Lamphunprovince.Total market value approx. 10,000 million baht.Longans are much eaten fresh, out-of-hand, but some have maintained that the fruit is improved by cooking ,canned in syrup or dried. For drying, the fruits are first heated to shrink the flesh and facilitate peeling of the rind. Then the seeds are removed and the flesh dried over a slow fire. The dried product is black, leathery and smoky in flavor and is mainly used to prepare an infusion drunk for refreshment.
Various new product and process innovation have been researched by the universities namely Kasetsart, Chiang Mai and Maejo University. According to the research, there are potential diversification of the new longan business, since longan contains the active ingredients i.e; antioxidant, anti-carcinogenic nutrients which are suitable to be medicine base and supplementary foods.
Innovation Longan Project Purposes :
To promote the competitiveness of SMEsin longan sector.
To influence SMEs using “differentiation strategy” in order to access new market.
To enhance SMEs using innovation to increase competitiveness through new product and new process development.
SMEs investment are facilitated through FTI & NIA Support.
Innovation LonganProduct & Process
ขาว
R&D
Innovation
?
Innovation Longan Project Key Results :
Longan product & process innovation researched by universities are studied the business aspect in term of technical production possibility and market potential.
The selectively market oriented innovation are promoted to SMEs investors.
To enhance SMEs using innovation to increase competitiveness through new product and new process development.
Survey available R&D reports from various universities and research centres.NSTDA
30 researchDocuments
Purpose collected research documents to SMEs.Technically evaluate the collected reports.Pre-screen the production & investment possibility.
February
March -April
May-July 5 selected R&D
August - September
NSTDA&NIA
3 R&Dcommitted
30 SMEsJoined
Facilitate the financial support , provide technical training and capacity building to SMEs investors
October-December2 SMEs
Make proposal to NIA to get
reinforce Innovationinvestment
NIA
SME Satisfaction Evaluation 85%
NSTDA
NIAR&DISC
GTZ
Raise awareness of the selected innovation to the SMEs investors through the seminars or innovation fair
( 8 – 9 sep 2006)
Assess and select the evaluated research to meet market potential and commercial investment
• Survey available R&D reports from various universities and research centres.
Activities• Purpose collected R&D report to SMEs through seminar,29-march-2006 @ The Empress Hotel.
February-March
>= 30 research documents that identify innovations in longan products or processes.
Survey Result
mainly classified into 2 types of R&D
Agricultural Industry
• Cultivation• Productivity• Pest control etc.
• Product development• Quality development• Energy saving• Production efficiency• Machine etc.
>= 30 research documents that identify innovations in longan products or processes.
Research & Development and Innovation Service Centre
(R&DISC)
Figure 6.5: Evolution of Economic and Innovation in Chiang Mai/ Lamphoon Twin City (1961 – 2003)
2002Lanna Strategic Road
Map Approval
1991Establishment of
Northern Handicrafts Manufacturers and Exporters Association
(NORMEX)
2005Chiang Mai was ranked number 5 in the W orld
Best City Chart by Travelandleisure
COMPLIMENTARY ARCHITECTURE
MATERIAL BASED KNOWLEDGE
ICT BASED KNOWLEDGE
BIOTECHNOLOGY BASED KNOWLEDGE
FUTURE BASED KNOWLEDGE
LOCAL BASED WISDOM
CHIANG MAI LAMPOON
CC2
CC3
CC5
CC1
CC4
CC6
CL2
CL3
CC1 = Local based wisdom reservoir in Chiang MaiCC2 = Handicraft cluster in Chiang MaiCC3 = Hotel and tourism cluster in Chiang MaiCC4 = Software cluster in Chiang MaiCC5 = Agro-biotechnology cluster in Chiang MaiCC6 = Knowledge intensive businesses (intangible products)
CL1 = Local based wisdom reservoir in LampoonCL2 = Manufacturing industrial estate in LampoonCL3 = Agriculture cluster in Lampoon CL4 = Knowledge intensive manufacturing businesses (tangible products)LA1 = Logistics agents
INFLUENCING AGENTS
ARCHITECTURE OF CHIANG MAI LAMPOON INNOVATION SYSTEMS
SUPPORTING AGENTS
SECTO
RA
L INN
OVA
TION
SYSTEMS
Federation of Thai Industry (RDISC)
RESEARCH ARCHITECTURE SOCIAL ARCHITECTURE
CL1
CL4
Consultancy agents
THE ROYAL PROJECTS
CHRISTIAN AND CATHOLIC MISSIONS LOCAL COMMUNITIES
LA1
Thai Chamber of Commerces
FDI/ Inbound Investors
Local banks
NNNSTDA
Local policy agents (NESDB) Local universities’ research
Other local Governmental RTOs
NNNSTDA = Northern Network National Science and Technology Development AgencyRDISC = Research, Development and Innovation Service Centre of The Federation of Thai Industry (Chiang Mai Chapter)NESDB = National Economic and Social Development Board
Local education and wisdom
Local living environment OTOP communities
LANNA Culture
NEW REGULATIONS LOCAL NGO’SDOMESTIC MARKET INTERNATIONAL MARKET
Knowledge transferred and exchanged routesKnowledge spill-over and covergences
THE REST OF UPPER
NORTHERN CEO GOVERNOR
ADMINISTRATIVE CUSTER
ระบบนวตักรรมลานนา
SEC
TOR
AL
INN
OVA
TIO
N S
YSTE
MS
REGIONAL INNOVATION SYSTEMS
MATERIAL BASED SECTORS
ICT BASED SECTORS
BIOTECH BASED SECTORS
FUTURE BASED SECTORS
REG
ION
1
REG
ION
2
REG
ION
3
REG
ION
4
REG
ION
5
REG
ION
6
REG
ION
7
REG
ION
8
REG
ION
9
RE
GIO
N 1
9
RE
GIO
N 1
0
RE
GIO
N 1
1
C1
C2
C3
C4
C5
C6
C7
C8
INFLUENCING AGENTS
EDUCATION
SUPPORTING AGENTS
R&DPUBLIC POLICY FINANCING CONSULTING SOCIAL ASSET
RESEARCH ARCHITECTURE SOCIAL ARCHITECTURECOMPLIMENTARY ARCHITECTURE