Special Section on Managing Industrial Technological Innovation in Emerging Nations – Special PapersNo Access

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

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

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and

Nathasit Gerdsri

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

Corresponding author.

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https://doi.org/10.1142/S0219877014400094Cited by:7 (Source: Crossref)

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.

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