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 2006
Growing the Chiangmai Innovation System Chiangmai’s problem centripetal Forces
Value Creation Economy
VALUE CREATION ECONOMY identity
+ + skill
Differentiate Quality of life creative
knowledge
Mass Production
High volume Low cost
Competition with China ,Japan &Korea
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
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
EVOLUTION OF CHIANGMAI PRIVATE SECTOR IN INNOVATION MANAGEMENT Figure 6.4: CHRONICLE AND ROADMAP OF RESEARCH, DEVELOPMENT AND INNOVATION SERVICE CENTRE (RDISC) (1999 – 2020) NATIONAL PRODUCTIVITY INSTITUTE SUPPORTED (10,000 EURO)
CONFERENCE ON R&D for SM Es and SUPPORTING ACTIVITIES STARTED
THE 1 ST CHIANG MAI INNOVATION FAIR AND CONFERENCE LAUNCHED “AW ARENESS”
2000
Economic Crisis 1997
1999
INNOVATION AND SURVIVAL OF THAI SM Es CONFERENCE
THE 3 rd CHIANG MAI INNOVATION FAIR AND CONFERENCE LAUNCHED “INNOVATION: GATEW AY TO W EALTH CREATION”
2002
2001 THE FIRST NNSPSME 3 YEARS PLAN DEVELOPED
ESTABLISHING OF “LANNA INNOVATION CENTRE” ATTACHES TO UPPER NORTHERN CEO GOVERNOR ADMINISTRATION PLAN
CHIANG M AI INNOVATION NETW ORK W AS FORMED W ITH 16 INSTITUTIONS PARTICIPATED
SMEs CENTRE SUPPORTS (20,000 EURO)
REGIONAL AND NATIONAL EXPANSION OF RDISC MODEL
2006
2004
2003
2005
THE 2 nd CHIANG MAI INNOVATION FAIR AND CONFERENCE LAUNCHED “INNOVATION: YOU CAN DO”
CHIANG MAI INNOVATION CITY FULLY ESTABLISHED
2020
2007
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 W AS LAUNCHED IN CHIANG M AI
CHIANG MAI INNOVATION CITY CAMPAIGN STARTED JICA SUPPORTS (40,000 EURO) Note: Constructed from FTI and RDISC interviews and author’s approved consulting proposal to RDISC
NNSPSME = Northern Network of Service Providers for Small and M edium Enterprises JICA = Japan International Co-operation Agency
HOW TO 1. INNOVATION SYSTEM 2. NETWORKING & CLUSTER APPROACH : PROCESS OF INNOVATION INNITIATIVE ; NEW KNOWLEDGE + LOCAL WISDOM ( high-tech & high-touch)
CULTURE ASSET MAKE THE PRODUCT DIFFICULT TO COPY
SKILL
+ TECHNOLOGY
+ CREATIVE CULTURE ASSET
Value
REATION
social pricing value (value beyond economic pricing)
The MOU of 16 Organizations
Different Participants
PROCESS OF INNOVATION INITIATIVE IN CHIANGMAI SINCE 1999
1 Awareness
2 D/B R&D
3
4 HRD
Network Cluster
5 Marketing Branding
CAN WE BUILD VALUE CREATION IN PRODUCT & SERVICE
?
rice
Knowledge
longan
orchid
SUCCESS STORIES: • INNOVATIVE LONGAN FRUIT IN CHIANGMAI ,THAILAND
• KEY SUCCESS FACTORS IN MARKETS AND VALUE CHAINS
CASE STUDY IN CHIANGMAI INNOVATIVE LONGAN
Research Development and Innovation Service Center, Federation of Thai Industries – Chiang Mai Chapter.
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 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.
„
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 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.
Innovation Longan Product & 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.
February NSTDA
Survey available R&D reports from various universities and research centres.
30 research Documents
March -April NSTDA
Purpose collected research documents to SMEs. Technically evaluate the collected reports. Pre-screen the production & investment possibility.
May-July
R&DISC GTZ
NIA
Assess and select the evaluated research to meet market potential and commercial investment
August - September NSTDA& NIA
Raise awareness of the selected innovation to the SMEs investors through the seminars or innovation fair ( 8 – 9 sep 2006)
October-December NIA
5 selected R&D
Facilitate the financial support , provide technical training and capacity building to SMEs investors
SME Satisfaction Evaluation
30 SMEs Joined 3 R&D committed 2 SMEs Make proposal to NIA to get reinforce Innovation investment
85%
February-March
Activities
• Survey available R&D reports from various universities and research centres. • Purpose collected R&D report to SMEs through seminar,29-march-2006 @ The Empress Hotel.
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.
Survey Result >= 30 research documents that identify innovations in longan products or processes. Readiness for Investment Ready for SMEs Investment
Need further development
Researcher purpose to SMEs (On stage present)
SMEs check from R&D Documents
Not match (SMEs’s need)
SMEs Suggest & Comment In evaluation form
R&D
Hi-Light LAB SCALE
• Healthy snack & beverage • Healthy supplementary food • Cosmetic Medi-cosmetic • Extracts • nutritional –rich product
Anti-radical longan
Expand production capacity 10 fold of Lab Scale
Market Feasibility Study Pilot Plant
Dr.Usanee Vinitkatekumnuan Faculty of Medicine Chiangmai University
HEALTY PRODUCT
R&D
Hi-Light
Fresh longan (any grade/size)
Longan sugar
Sugarcane factory
Longan sugar
Dr.CharinTechaphan Faculty of Agro-industry Chiangmai University
IMPLEMENT PROJECT FORM LONGAN TO FRUIT SUGAR
CMU NSP NSTDA R & DISC FIRM
COLABORATION BY
MOU ON NORTHERN INNOVATION FAIR 8-9 September 2006
Site visit the sugar factory 25 August 2006
MOU between networking at innovation fair 8-9 September 2006
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-5Th 2.2 www.Chiangmaiinnovation.com , newsletter 3.Value Chains 3.1 Innovation in value chain 3.2 SME (stand alone) 3.3 Collaboration between SME & Large Enterprise
Figure 6.4: CHRONICLE AND ROADMAP OF RESEARCH, DEVELOPMENT AND INNOVATION SERVICE CENTRE (RDISC) (1999 – 2020) NATIONAL PRODUCTIVITY INSTITUTE SUPPORTED (10,000 EURO)
CONFERENCE ON R&D for SM Es and SUPPORTING ACTIVITIES STARTED
THE 1 ST CHIANG MAI INNOVATION FAIR AND CONFERENCE LAUNCHED “AW ARENESS”
2000
Economic Crisis 1997
1999
INNOVATION AND SURVIVAL OF THAI SM Es CONFERENCE
THE 3 rd CHIANG MAI INNOVATION FAIR AND CONFERENCE LAUNCHED “INNOVATION: GATEW AY TO W EALTH CREATION”
2002
2001 THE FIRST NNSPSME 3 YEARS PLAN DEVELOPED
ESTABLISHING OF “LANNA INNOVATION CENTRE” ATTACHES TO UPPER NORTHERN CEO GOVERNOR ADMINISTRATION PLAN
CHIANG M AI INNOVATION NETW ORK W AS FORMED W ITH 16 INSTITUTIONS PARTICIPATED
SMEs CENTRE SUPPORTS (20,000 EURO)
REGIONAL AND NATIONAL EXPANSION OF RDISC MODEL
2006
2004
2003
2005
THE 2 nd CHIANG MAI INNOVATION FAIR AND CONFERENCE LAUNCHED “INNOVATION: YOU CAN DO”
CHIANG MAI INNOVATION CITY FULLY ESTABLISHED
2020
2007
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 W AS LAUNCHED IN CHIANG M AI
CHIANG MAI INNOVATION CITY CAMPAIGN STARTED JICA SUPPORTS (40,000 EURO) Note: Constructed from FTI and RDISC interviews and author’s approved consulting proposal to RDISC
NNSPSME = Northern Network of Service Providers for Small and M edium Enterprises JICA = Japan International Co-operation Agency
Question-Answer Thank you
Research Development and Innovation Service Center, Industries Chiangmai Chapter.
Federation of Thai
APPENDIX
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
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
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
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
แนวคิดนวัตกรรมเชียงใหม-ภาคเหนือ แผนระยะเวลา
ระดับ
ระดับหนวยงาน
¿
ระดับภาคเหนือ
ระดับภาค
ผูรบั ผิดชอบ \
ป 2563 (2020)
“เชียงใหมเมืองนวัตกรรม” (รองรับจังหวัดอื่นในภาคเหนือ)
ระดับจังหวัด การเปลี่ยนวัฒนธรรม [
ระบบนวัตกรรมเชียงใหม Innovation Cluster การทองเที่ยว เซรามิก ไบโอเทค : ลําไย เชิงนวัตกรรม เชิงนวัตกรรม ICT
ระดับจังหวัด ระดับ Cluster
ป 2548-2550 3 ป
MOU เครือขายนวัตกรรมเชียงใหม ป 48 : ทําแผน 15 ป (/2549-2563)
N/W เครือขาย
ป 2547-2542 ทุกป
บริษัท ที่มีนวัตกรรม (บริษัท จําลองเชิงนวัตกรรม/การบมเพาะ)
ระดับ Firm/Secter
เริม่ จากป 2542
CA ความสามารถการแขงขัน (โดย ผูประกอบการเปนศูนยกลาง)
แนวคิด นวัตกรรม เชิงปฏิบัติ Innovation เชิงนโยบาย System&Cluster ¿
2549
Z
Y
X
เครือขายภาครัฐ, ภาคเอกชน, ภาค การศึกษา และมี RDISC มี สวนรวมเปนผู ประสานงาน เบื้องตนรวมกับ หนวยงานทีส่ นใจ
วิวัฒนาการของพัฒนาการทางการสรางองคกรความรูและ นวัตกรรมในจังหวัดเชียงใหม Figure 6.5: Evolution of Econom ic and Innovation in Chiang M ai/ Lamphoon Twin City (1961 – 2003) 2002 Lanna Strategic Road M ap Approval
2001 Thai Rak Thai w on general election
1999 Establishm ent of Research & Developm ent and Innovation Service Centre (R&DISC)
1997 ‘Innovation’ first debut in National Econom ic and Social Developm ent Plan No. 7
1991 Establishm ent of Northern Handicrafts M anufacturers and Exporters Association (NORM EX)
1997
1970
Financial Crisi
Northern Region Industrial Estate Decree Approval
1996
1961-1965
Construction of Northern Region Industrial Estate
1964 Establishm ent of Chiang M ai University (CM U)
1960
Upgrading of M aejo University (M JU)
1983-1985
Developm ent of Agriculture
1970
2005 Chiang M ai was ranked num ber 5 in the W orld Best City Chart by Travelandleisure
1980
1991 Chiang M ai/ Lam phoon Twin City Developm ent Proposal Approval
1990
2000
2010
2020
ระบบนวัตกรรมลานนา
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
CHIANG MAI
CL1
CC3
ICT BASED KNOWLEDGE
CL2
CC4
LA1
CC5
BIOTECHNOLOGY BASED KNOWLEDGE
CL3
CC6
FUTURE BASED KNOWLEDGE
Local universities’ research
Other local Governmental RTOs
Local banks
NNNSTDA
CL4
Consultancy agents
FDI/ Inbound Investors
RESEARCH ARCHITECTURE
THE REST OF UPPER NORTHERN CEO GOVERNOR ADMINISTRATIVE CUSTER
Thai Chamber of Commerces
Federation of Thai Industry (RDISC)
COMPLIMENTARY ARCHITECTURE
Local living environment LANNA Culture
OTOP communities Local education and wisdom
SOCIAL ARCHITECTURE
SUPPORTING AGENTS
CC1 CC2 CC3 CC4 CC5 CC6
= = = = = =
Local based wisdom reservoir in Chiang Mai Handicraft cluster in Chiang Mai Hotel and tourism cluster in Chiang Mai Software cluster in Chiang Mai Agro-biotechnology cluster in Chiang Mai Knowledge intensive businesses (intangible products)
CL1 CL2 CL3 CL4
= = = =
Local based wisdom reservoir in Lampoon Manufacturing industrial estate in Lampoon Agriculture cluster in Lampoon 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
SECTORAL INNOVATION SYSTEMS
CC2
MATERIAL BASED KNOWLEDGE
Local policy agents (NESDB)
LAMPOON
CC1
LOCAL BASED WISDOM
LOCAL COMMUNITIES
Figure 7.3: THAILAND INNOVATION SYSTEM
ระบบนวัตกรรมแหงชาติไทย THE MONARCH
DOMESTIC MARKETS
INTERNATIONAL MARKETS
REGULATORS
NGO’s
SOCIETY
INFLUENCING AGENTS
SECTORAL INNOVATION SYSTEMS
C1
REGION 19
REGION 11
REGION 10
REGION 9
REGION 8
REGION 7
REGION 6
REGION 5
REGION 4
REGION 3
REGION 2
REGION 1
REGIONAL INNOVATION SYSTEMS
MATERIAL BASED SECTORS
C5
C2
ICT BASED SECTORS
C7
C3
C6
BIOTECH BASED SECTORS
C8
FUTURE BASED SECTORS
C4
SUPPORTING AGENTS PUBLIC POLICY
R&D
RESEARCH ARCHITECTURE
FINANCING
CONSULTING
COMPLIMENTARY ARCHITECTURE
C = CLUSTER REGION = CEO GOVERNOR’S ADMINISTRATIVE REGIONS
SOCIAL ASSET
EDUCATION
SOCIAL ARCHITECTURE
เครือขายและความรวมมือ Innovation Key Key Selected Character Prioritizati Departm Direction istics ents on Product innovation Process innovation Organisatio nal innovation Market innovation Corporate innovation
Note