HOW TO IMPLEMENT “INNOVATION”IN CHIANGMAI , THAILAND

WICHIEN CHERDCHUTRAKUNTONGWICHIEN 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

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

CHIANG MAI INNOVATION NETWORK WAS FORMED WITH

16 INSTITUTIONS PARTICIPATED

EconomicCrisis 1997

HOW TO

1. INNOVATION SYSTEM2. NETWORKING & CLUSTER APPROACH

: 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.

Survey Result

Readiness for Investment

Ready for SMEs Investment

Need further development

Not match (SMEs’s need)

Researcher purposeto SMEs

(On stage present)

SMEs check fromR&D Documents

SMEsSuggest & CommentIn evaluation form

Hi-LightR&D Anti-radical longan

LAB SCALE

Expand production capacity10 fold of Lab Scale

Market Feasibility Study

Pilot Plant

Dr.Usanee VinitkatekumnuanFaculty of Medicine

Chiangmai University

• Healthy snack & beverage• Healthy supplementary food• Cosmetic Medi-cosmetic • Extracts• nutritional –rich product

HEALTY PRODUCT

Hi-LightR&D Longan sugar

Fresh longan(any

grade/size)Sugarcane factory

Longan sugar

Dr.CharinTechaphanFaculty of Agro-industry

Chiangmai University

IMPLEMENT PROJECT

FORM LONGAN TO FRUIT SUGAR

COLABORATION BY CMUNSP

NSTDAR & DISC

FIRMMOU ON NORTHERN INNOVATION FAIR 8-9 September 2006

MOU between networking at innovation fair8-9 September 2006

Site visit the sugar factory25 August 2006

CONCLUSION & LESSONKEY SUCCESS FACTORS IN MARKETS AND

VALUE CHAINS OF CM. INNOVATION INITIATIVE

1. Collaboration of innovation in network & cluster1.1 Innovation Cluster1.2 Model 1.3 Incubation in University

2. Markets2.1 Innovation market place and conference 1St-5Th

2.2 www.Chiangmaiinnovation.com , newsletter3.Value Chains

3.1 Innovation in value chain3.2 SME (stand alone)

3.3 Collaboration between SME & Large Enterprise

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

CHIANG MAI INNOVATION NETWORK WAS FORMED WITH

16 INSTITUTIONS PARTICIPATED

EconomicCrisis 1997

Question-Answer

Thank you

Research Development and Innovation Service Center, Federation of Thai Industries Chiangmai Chapter.

APPENDIX

R&D

1. Instant Longan Sugar Research and Development for Food Industry Usefulness

2. Research for Longan Wine Production Training

3. Research of Fructose Longan Syrup Production Development for Food Industry Usefulness

4. Balanced and Kinetics Absorb of Activated Carbon from Langan Seed

5. Powder Medicine Production and Full-flavoured Longan Juice from Extracts for Industry

6. High Nutrients Beverage From Dry longan and Rice Product Development by Technology Method

7. Semi-arid Longan Piece Product Development for Technology Transferring

8. Longan Squeeze Beverage Research

9. Longan Juice Powder Production by Foam-mat Dehydrated

10. Design, Process Development and Production Tools of Instant Fresh Longan Soft Drink

Innovation LonganWork Flow

R&D

11. Drinking Longan Powder

12. Design A High Efficiency Rotary Drum Longan Dryer

13. Transfigure of Drying Longan with Skins

14. Colour Quality Improvement of Drying Longan Skins

15. Effects of Ozone to Longan Lifetime

16. Gold Longan Made - Technical and Process

17. Golden Longan Meat Production Process Improvement for Commercialize

18. Research of Longan Maintain at Low Temperature

19. Temperature Productive to Smoke Dor Longan by So2

20. So2 Replacement in Semi-arid Longan Production by Using Brown ColourProstaglandin & Osmotic

R&D

21. Semi-arid Longan Production by Dry Vacuum Tray with Brown ColourProstaglandin & Osmotic

22. Semi-arid Instant Longan Product Development for Technology Tranferring

23. Fresh Longan Life Extend Process for Tranfiguration to Drying LonganMeat

24. So2 Replacement > The Procedure after Gathering Longan

25. Knowledge Tranferring of Dry Longan Production by Using Heat Pump and Blower

26. Drying Longan Process by Infrared

27. Drying Longan Process by Using Cysteine, Maltodextrin, Calcium chloride, Citric acid, Ascorbic acid & Drying Vacuum

28. Longan Smoke Houses and Sulferdioxide Traeatment System Design

29. Number of Sulferdioxide Fast Checking Tools for Fresh Longan Smoking Process

30. Heat Energy Recycle to Drying Longan Process

R&D

31. Automatic Longan Harvester Prototype Desing and Development

32. Longan Seeder

33. Longan Drying Oven Development

34. Longan Heat Flow Dryers

35. Longan Drying Process by LPG Circulation Tank

36. Longan Seeders and Sizing Machine

37. Improvement of Longan Dry Oven

38. Switch Direction Heat Flow Oven Development for Longan Gardener

39. Switch Circulation Heat Flow Oven Development for Longan with Skin

40. Energy Saver for Longan Dryer

R&D

41. Longan Peeler

42. Design, Buildand Evaluation of Longan Harvester Prototype

43. Export Longan Smoke Houses Development > Sulferdioxide Terminator

44. Competency Testing of Silica gel (Tray) for Longan Drying Process

45. Longan Dryer Development by Using Recycle Heat Flow

46. Instant Longan Sugar Development for Food Industry

47. Semi-arid Longan Piece Product

48. Prototype Factory of Longan Product for Health

แนวคดินวตักรรมเชยีงใหม-ภาคเหนอืแผนระยะเวลา ระดับ ระดับหนวยงาน ผูรับผิดชอบ

ระดับภาคเหนือ ระดับภาค

“เชียงใหมเมืองนวัตกรรม”(รองรับจังหวัดอื่นในภาคเหนือ)

ระดับจังหวัดการเปลี่ยนวัฒนธรรม

ป 2563(2020)

2549

ระบบนวัตกรรมเชียงใหมInnovation Cluster

การทองเที่ยว เซรามิก ไบโอเทค : ลําไยเชิงนวัตกรรม เชิงนวัตกรรม ICT

ระดับจังหวัดระดับ Cluster

ป 2548-25503 ป

MOU เครือขายนวัตกรรมเชียงใหมป 48 : ทําแผน 15 ป (/2549-2563)

N/W เครือขาย

ป 2547-2542ทุกป

บริษัท ที่มีนวัตกรรม(บริษัท จําลองเชิงนวัตกรรม/การบมเพาะ)

ระดับ Firm/Secter

เริม่จากป 2542 CA ความสามารถการแขงขัน(โดย ผูประกอบการเปนศูนยกลาง)

แนวคิด นวัตกรรม เชิงปฏิบัติInnovation เชิงนโยบาย

System&Cluster

เครือขายภาครฐั, ภาคเอกชน, ภาคการศกึษา และมี RDISC มีสวนรวมเปนผูประสานงานเบื้องตนรวมกบั หนวยงานทีส่นใจ

วิวัฒนาการของพัฒนาการทางการสรางองคกรความรูและนวัตกรรมในจังหวัดเชียงใหม

1960 202019901970 1980 2000 2010

1964Establishment of

Chiang Mai University (CMU)

1996Upgrading of

Maejo University (MJU)1961-1965

Development of Agriculture

1970Northern Region

Industrial Estate DecreeApproval

1991Chiang Mai/ Lamphoon Twin City Development

Proposal Approval

1983-1985Construction of

Northern Region Industrial Estate

1997Financial Crisi

1997‘Innovation’ first debut in National Economic

and Social Development Plan No. 7

2001Thai Rak Thai won

general election

1999Establishment of

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

DOMESTIC MARKETS REGULATORS SOCIETYNGO’sINTERNATIONAL MARKETS

C = CLUSTERREGION = CEO GOVERNOR’S ADMINISTRATIVE REGIONS

THE MONARCH

Figure 7.3: THAILAND INNOVATION SYSTEM

ระบบนวตักรรมแหงชาติไทย

เครือขายและความรวมมอืKey

Characteristics

InnovationPrioritizati

on

Key Departm

ents

Selected Direction

Note

Product innovation

Process innovation

Organisationalinnovation

Market innovation

Corporate innovation