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Implications of Technology Management and Policy on the Development of a Sectoral Innovation System: Lessons Learned Through the Evolution of Thai Automotive Sector

Author

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  • Patarapong Intarakumnerd

    (Science, Technology and Innovation Policy Program, National Graduate Research Institute for Policy Studies (GRIPS), 7-22-1 Roppongi, Minato-ku 106-8677, Tokyo, Japan)

  • Nathasit Gerdsri

    (College of Management, Mahidol University, 69 Vipawadee Rangsit Road, Phayathai 10400, Bangkok, Thailand)

Abstract

This paper examines how a sectoral innovation system evolves over time and what the underlying factors derive from the development of automotive industry in Thailand which is presented as a case example. Since 1960's, the government policies and the development of liberal investment climate have been a push for the influx of large-scale foreign direct investments (FDI) in Thailand. Automotive industry has also been targeted as a major assembly base of foreign carmakers while the local suppliers were mostly slow and passive learners. In the late- 1990's, foreign carmakers began acting as "lead" firms to invest in R&D and related activities. This induced positive coevolution in other actors, especially the first-tier foreign suppliers and some local suppliers, in the sectoral innovation systems which, in turn, became stronger, more coherent and product-specific. According to Thailand Automotive Institute (TAI), the production volume is expected to grow to two million units by 2015 which would bring Thailand to be on the top-ten list of the largest auto-producers in the world. This research paper has implications on the concept of sectoral innovation system, corporate technology strategies and government technology and innovation policies.

Suggested Citation

  • Patarapong Intarakumnerd & Nathasit Gerdsri, 2014. "Implications of Technology Management and Policy on the Development of a Sectoral Innovation System: Lessons Learned Through the Evolution of Thai Automotive Sector," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 11(03), pages 1-19.
    • Handle: RePEc:wsi:ijitmx:v:11:y:2014:i:03:n:s0219877014400094
    DOI: 10.1142/S0219877014400094
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    Citations

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    Cited by:

    1. Keun Lee & Di Qu & Zhuqing Mao, 2021. "Global Value Chains, Industrial Policy, and Industrial Upgrading: Automotive Sectors in Malaysia, Thailand, and China in Comparison with Korea," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(2), pages 275-303, April.
    2. Nathasit Gerdsri & Nisit Manotungvorapun, 2021. "Readiness Assessment for IDE Startups: A Pathway toward Sustainable Growth," Sustainability, MDPI, vol. 13(24), pages 1-17, December.
    3. Nathasit Gerdsri & Boonkiart Iewwongcharoen & Kittichai Rajchamaha & Nisit Manotungvorapun & Jakapong Pongthanaisawan & Watcharin Witthayaweerasak, 2021. "Capability Assessment toward Sustainable Development of Business Incubators: Framework and Experience Sharing," Sustainability, MDPI, vol. 13(9), pages 1-20, April.
    4. Patarapong Intarakumnerd, 2015. "Seven Unproductive Habits of Thailand’s Ineffective Technology and Innovation Policies : Lessons for other Developing Countries," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 7(1), pages 80-95, April.
    5. Kalyuzhnova, Yelena & Azhgaliyeva, Dina & Belitski, Maksim, 2022. "Public Policy Instruments for Procurement: An Empirical Analysis," Technological Forecasting and Social Change, Elsevier, vol. 176(C).

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