HOW TO IMPLEMENT INNOVATION IN CHIANGMAI, THAILAND
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1 HOW TO IMPLEMENT INNOVATION IN CHIANGMAI, THAILAND The Role of The Federation of Thai Industries In Encouraging Innovation WICHIEN CHERDCHUTRAKUNTONG R & DISC ( research & development and innovation service center, The Federation of Thai Industry, Chiangmai chapter Thailand 20 September
2 Growing the Chiangmai Innovation System Chiangmai s problem centripetal Forces
3 Value Creation Economy
4 VALUE CREATION ECONOMY + + identity skill knowledge Mass Production High volume Low cost Differentiate Quality of life creative Competition with China,Japan &Korea
5 CONCEPT WHAT : INNOVATION ; THE WAY TO CREATE COMPETITIVE ADVANTAGE WITH LOCAL WISDOM + NEW KNOWLEDGE WHY : why FTI INVOLVE IN INNOVATION? HOW TO : THE PROCESS TO CREATE SUCCESS SUCCESS STORIES: INNOVATIVE LONGAN FRUIT IN CHIANGMAI,THAILAND CONCLUSION KEY SUCCESS FACTORS IN MARKETS AND VALUE CHAINS
6 WHAT AS NEW THINGS DERIVED FROM THE EXPLOITSTION OF KNOWLEDGE AND CREATIVITY, LEADING TO ENHANCEMENT OF SOCIAL AND ECONOMIC VALUE WHY CRISIS, SURVIVE AND SUSTAINABLE
7 EVOLUTION OF CHIANGMAI PRIVATE SECTOR IN INNOVATION MANAGEMENT Figure 6.4: CHRONICLE AND ROADMAP OF RESEARCH, DEVELOPMENT AND INNOVATION SERVICE CENTRE (RDISC) ( ) NATIONAL PRODUCTIVITY INSTITUTE SUPPORTED (10,000 EURO) SMEs CENTRE SUPPORTS (20,000 EURO) CHIANG MAI INNOVATION NETWORK WAS FORMED WITH 16 INSTITUTIONS PARTICIPATED ESTABLISHING OF LANNA INNOVATION CENTRE ATTACHES TO UPPER NORTHERN CEO GOVERNOR ADMINISTRATION PLAN CONFERENCE ON R&D for SMEs and SUPPORTING ACTIVITIES STARTED THE 1 ST CHIANG MAI INNOVATION FAIR AND CONFERENCE LAUNCHED AWARENESS THE 3 rd CHIANG MAI INNOVATION FAIR AND CONFERENCE LAUNCHED INNOVATION: GATEWAY TO WEALTH CREATION REGIONAL AND NATIONAL EXPANSION OF RDISC MODEL CHIANG MAI INNOVATION CITY FULLY ESTABLISHED Economic Crisis INNOVATION AND SURVIVAL OF THAI SMEs CONFERENCE THE FIRST NNSPSME 3 YEARS PLAN DEVELOPED THE 2 nd CHIANG MAI INNOVATION FAIR AND CONFERENCE LAUNCHED INNOVATION: YOU CAN DO THE 4 th CHIANG MAI INNOVATION FAIR AND CONFERENCE LAUNCHED SUSTAINABLE INNOVATION INSTITUTIONALISATION and INTERNATIONALISATION of RDISC GTZ SUPPORTS (1,000 EURO) THAI PARLIAMENT SUPPORTS (10,000 EURO) SMEs CENTRE SUPPORTS (18,000 EURO) THE 1 st REGIONAL INNOVATION SURVEY IN THAILAND WAS LAUNCHED IN CHIANG MAI CHIANG MAI INNOVATION CITY CAMPAIGN STARTED Note: Constructed from FTI and RDISC interviews and author s approved consulting proposal to RDISC JICA SUPPORTS (40,000 EURO) NNSPSME = Northern Network of Service Providers for Small and Medium Enterprises JICA = Japan International Co-operation Agency
8 HOW TO 1. INNOVATION SYSTEM 2. NETWORKING & CLUSTER APPROACH : PROCESS OF INNOVATION INNITIATIVE ; NEW KNOWLEDGE + LOCAL WISDOM ( high-tech & high-touch)
9 CULTURE ASSET MAKE THE PRODUCT DIFFICULT TO COPY SKILL + TECHNOLOGY + CREATIVE CULTURE ASSET Value REATION social pricing value (value beyond economic pricing)
10 The MOU of 16 Organizations
11 Different Participants
12 PROCESS OF INNOVATION INITIATIVE IN CHIANGMAI SINCE Awareness D/B R&D HRD Network Cluster Marketing Branding
13 CAN WE BUILD VALUE? CREATION IN PRODUCT & SERVICE rice Knowledge longan orchid
14 SUCCESS STORIES: INNOVATIVE LONGAN FRUIT IN CHIANGMAI,THAILAND KEY SUCCESS FACTORS IN MARKETS AND VALUE CHAINS
15 CASE STUDY IN CHIANGMAI INNOVATIVE LONGAN Research Development and Innovation Service Center, Federation of Thai Industries Chiang Mai Chapter.
16 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)
17 The longan, knowninthaiaslamyai, also known as dragon's eye or eyeball. One of the prize fruits grown in northern Thailand.,esp. Chiangmai Lamphun province. Total market value approx. 10,000 million baht. Longans are much eaten fresh, out-ofhand, 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.
18 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.
19 Innovation Longan Project Purposes : To promote the competitiveness of SMEs in 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.
20 Innovation Longan Product & Process? ข าว R&D Innovation
21 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.
22 NSTDA February Survey available R&D reports from various universities and research centres. 30 research Documents NSTDA March -April Purpose collected research documents to SMEs. Technically evaluate the collected reports. Pre-screen the production & investment possibility. R&DISC GTZ NIA NSTDA& NIA May-July Assess and select the evaluated research to meet market potential and commercial investment August - September Raise awareness of the selected innovation to the SMEs investors through the seminars or innovation fair ( 8 9 sep 2006) 5 selected R&D 30 SMEs Joined 3R&D committed NIA October-December Facilitate the financial support, provide technical training and capacity building to SMEs investors 2SMEs Make proposal to NIA to get reinforce Innovation investment SME Satisfaction Evaluation 85%
23 February-March Activities Survey available R&D reports from various universities and research centres. Purpose collected R&D report to SMEs through The Empress Hotel.
24 Survey Result >= 30 research documents that identify innovations in longan products or processes. mainly classified into 2 types of R&D Agricultural Cultivation Productivity Pest control etc. Industry Product development Quality development Energy saving Production efficiency Machine etc.
25 Survey Result >= 30 research documents that identify innovations in longan products or processes. Readiness for Investment Ready for SMEs Investment Need further development Not match (SMEs s need) Researcher purpose to SMEs (On stage present) SMEs check from R&D Documents SMEs Suggest & Comment In evaluation form
26 Dr.Usanee Vinitkatekumnuan Faculty of Medicine Chiangmai University R&D Hi-Light Anti-radical longan LAB SCALE Expand production capacity 10 fold of Lab Scale Healthy snack & beverage Healthy supplementary food Cosmetic Medi-cosmetic Extracts nutritional rich product Market Feasibility Study Pilot Plant
27 HEALTY PRODUCT
28 Dr.CharinTechaphan Faculty of Agro-industry Chiangmai University R&D Hi-Light Longan sugar Fresh longan (any grade/size) Sugarcane factory Longan sugar
29 IMPLEMENT PROJECT FORM LONGAN TO FRUIT SUGAR COLABORATION BY CMU NSP NSTDA R & DISC FIRM MOU ON NORTHERN INNOVATION FAIR 8-9 September 2006
30 Site visit the sugar factory 25 August 2006 MOU between networking at innovation fair 8-9 September 2006
31 CONCLUSION & LESSON KEY SUCCESS FACTORS IN MARKETS AND VALUE CHAINS OF CM. INNOVATION INITIATIVE 1. Collaboration of innovation in network & cluster 1.1 Innovation Cluster 1.2 Model 1.3 Incubation in University 2. Markets 2.1 Innovation market place and conference 1St-5 Th newsletter 3.Value Chains 3.1 Innovation in value chain 3.2 SME (stand alone) 3.3 Collaboration between SME & Large Enterprise
32 Figure 6.4: CHRONICLE AND ROADMAP OF RESEARCH, DEVELOPMENT AND INNOVATION SERVICE CENTRE (RDISC) ( ) NATIONAL PRODUCTIVITY INSTITUTE SUPPORTED (10,000 EURO) SMEs CENTRE SUPPORTS (20,000 EURO) CHIANG MAI INNOVATION NETWORK WAS FORMED WITH 16 INSTITUTIONS PARTICIPATED ESTABLISHING OF LANNA INNOVATION CENTRE ATTACHES TO UPPER NORTHERN CEO GOVERNOR ADMINISTRATION PLAN CONFERENCE ON R&D for SMEs and SUPPORTING ACTIVITIES STARTED THE 1 ST CHIANG MAI INNOVATION FAIR AND CONFERENCE LAUNCHED AWARENESS THE 3 rd CHIANG MAI INNOVATION FAIR AND CONFERENCE LAUNCHED INNOVATION: GATEWAY TO WEALTH CREATION REGIONAL AND NATIONAL EXPANSION OF RDISC MODEL CHIANG MAI INNOVATION CITY FULLY ESTABLISHED Economic Crisis INNOVATION AND SURVIVAL OF THAI SMEs CONFERENCE THE FIRST NNSPSME 3 YEARS PLAN DEVELOPED THE 2 nd CHIANG MAI INNOVATION FAIR AND CONFERENCE LAUNCHED INNOVATION: YOU CAN DO THE 4 th CHIANG MAI INNOVATION FAIR AND CONFERENCE LAUNCHED SUSTAINABLE INNOVATION INSTITUTIONALISATION and INTERNATIONALISATION of RDISC GTZ SUPPORTS (1,000 EURO) THAI PARLIAMENT SUPPORTS (10,000 EURO) SMEs CENTRE SUPPORTS (18,000 EURO) THE 1 st REGIONAL INNOVATION SURVEY IN THAILAND WAS LAUNCHED IN CHIANG MAI CHIANG MAI INNOVATION CITY CAMPAIGN STARTED Note: Constructed from FTI and RDISC interviews and author s approved consulting proposal to RDISC JICA SUPPORTS (40,000 EURO) NNSPSME = Northern Network of Service Providers for Small and Medium Enterprises JICA = Japan International Co-operation Agency
33 Question-Answer Thank you Research Development and Innovation Service Center, Industries Chiangmai Chapter. Federation of Thai
34 APPENDIX
35 R&D Innovation Longan Work Flow 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
36 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 Colour Prostaglandin & Osmotic
37 R&D 21. Semi-arid Longan Production by Dry Vacuum Tray with Brown Colour Prostaglandin & Osmotic 22. Semi-arid Instant Longan Product Development for Technology Tranferring 23. Fresh Longan Life Extend Process for Tranfiguration to Drying Longan Meat 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
38 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
39 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
40 แนวค ดนว ตกรรมเช ยงใหม -ภาคเหน อ แผนระยะเวลา ระด บ ระด บหน วยงาน ผ ร บผ ดชอบ ระด บภาคเหน อ ระด บภาค ป 2563 เช ยงใหม เม องนว ตกรรม ระด บจ งหว ด (2020) 2549 ป (รองร บจ งหว ดอ นในภาคเหน อ) ระบบนว ตกรรมเช ยงใหม Innovation Cluster การท องเท ยว เซราม ก ไบโอเทค : ล าไย เช งนว ตกรรม เช งนว ตกรรม ICT MOU เคร อข ายนว ตกรรมเช ยงใหม การเปล ยนว ฒนธรรม ระด บจ งหว ด ระด บ Cluster N/W เคร อข าย เคร อข ายภาคร ฐ, ภาคเอกชน, ภาค การศ กษา และม RDISC ม ส วนร วมเป นผ ประสานงาน เบ องต นร วมก บ หน วยงานท สนใจ 3 ป ป 48 : ท าแผน 15 ป (/ ) ป บร ษ ท ท ม นว ตกรรม ระด บ Firm/Secter ท กป (บร ษ ท จ าลองเช งนว ตกรรม/การบ มเพาะ) เร มจากป 2542 CA ความสามารถการแข งข น (โดย ผ ประกอบการเป นศ นย กลาง) แนวค ด นว ตกรรม เช งปฏ บ ต Innovation เช งนโยบาย System&Cluster
41 ว ว ฒนาการของพ ฒนาการทางการสร างองค กรความร และ นว ตกรรมในจ งหว ดเช ยงใหม Figure 6.5: Evolution of Economic and Innovation in Chiang Mai/ Lamphoon Twin City ( ) 2002 Lanna Strategic Road Map Approval 2001 Thai Rak Thai won general election Development of Agriculture 1964 Establishment of Chiang Mai University (CMU) 1970 Northern Region Industrial Estate Decree Approval 1991 Establishment of Northern Handicrafts Manufacturers and Exporters Association (NORMEX) Construction of Northern Region Industrial Estate 1991 Chiang Mai/ Lamphoon Twin City Development Proposal Approval 1999 Establishment of Research & Development and Innovation Service Centre (R&DISC) 1997 Innovation first debut in National Economic and Social Development Plan No Financial Crisi 1996 Upgrading of Maejo University (MJU) 2005 Chiang Mai was ranked number 5 in the World Best City Chart by Travelandleisure
42 ระบบนว ตกรรมล านนา ARCHITECTURE OF CHIANG MAI LAMPOON INNOVATION SYSTEMS INFLUENCING AGENTS THE ROYAL PROJECTS DOMESTIC MARKET INTERNATIONAL MARKET NEW REGULATIONS LOCAL NGO S CHRISTIAN AND CATHOLIC MISSIONS LOCAL COMMUNITIES CHIANG MAI LAMPOON LOCAL BASED WISDOM CC1 CL1 MATERIAL BASED KNOWLEDGE ICT BASED KNOWLEDGE BIOTECHNOLOGY BASED KNOWLEDGE CC3 CC2 CC5 CC4 LA1 CL3 CL2 THE REST OF UPPER NORTHERN CEO GOVERNOR ADMINISTRATIVE CUSTER SECTORAL INNOVATION SYSTEMS FUTURE BASED KNOWLEDGE CC6 CL4 Local policy agents (NESDB) Local universities research Local banks Consultancy agents Thai Chamber of Commerces Local living environment OTOP communities Other local Governmental RTOs NNNSTDA FDI/ Inbound Investors Federation of Thai Industry (RDISC) LANNA Culture Local education and wisdom RESEARCH ARCHITECTURE COMPLIMENTARY ARCHITECTURE SOCIAL ARCHITECTURE SUPPORTING AGENTS CC1 = Local based wisdom reservoir in Chiang Mai CC2 = Handicraft cluster in Chiang Mai CC3 = Hotel and tourism cluster in Chiang Mai CC4 = Software cluster in Chiang Mai CC5 = Agro-biotechnology cluster in Chiang Mai CC6 = Knowledge intensive businesses (intangible products) CL1 = Local based wisdom reservoir in Lampoon CL2 = Manufacturing industrial estate in Lampoon CL3 = Agriculture cluster in Lampoon CL4 = Knowledge intensive manufacturing businesses (tangible products) LA1 = Logistics agents NNNSTDA = Northern Network National Science and Technology Development Agency RDISC = Research, Development and Innovation Service Centre of The Federation of Thai Industry (Chiang Mai Chapter) NESDB = National Economic and Social Development Board Knowledge transferred and exchanged routes Knowledge spill-over and covergences
43 Figure 7.3: THAILAND INNOVATION SYSTEM ระบบนว ตกรรมแห งชาต ไทย THE MONARCH DOMESTIC MARKETS INTERNATIONAL MARKETS REGULATORS NGO s SOCIETY INFLUENCING AGENTS REGIONAL INNOVATION SYSTEMS REGION 1 REGION 2 REGION 3 REGION 4 REGION 5 REGION 6 REGION 7 REGION 8 SECTORAL INNOVATION SYSTEMS REGION 9 REGION 10 REGION 11 REGION 19 C1 C2 C3 C5 C4 C6 C7 C8 MATERIAL BASED SECTORS ICT BASED SECTORS BIOTECH BASED SECTORS FUTURE BASED SECTORS SUPPORTING AGENTS PUBLIC POLICY R&D FINANCING CONSULTING SOCIAL ASSET EDUCATION RESEARCH ARCHITECTURE COMPLIMENTARY ARCHITECTURE SOCIAL ARCHITECTURE C = CLUSTER REGION = CEO GOVERNOR S ADMINISTRATIVE REGIONS
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