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
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