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
?
ขาว
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
ระดับหนวยงาน
¿
ระดับภาคเหนือ
ระดับภาค
ผูรบั ผิดชอบ
\
ป 2563
(2020)
“เชียงใหมเมืองนวัตกรรม”
(รองรับจังหวัดอื่นในภาคเหนือ)
ระดับจังหวัด
การเปลี่ยนวัฒนธรรม
[
ระบบนวัตกรรมเชียงใหม
Innovation Cluster
การทองเที่ยว เซรามิก ไบโอเทค : ลําไย
เชิงนวัตกรรม เชิงนวัตกรรม ICT
ระดับจังหวัด
ระดับ Cluster
ป 2548-2550
3 ป
MOU เครือขายนวัตกรรมเชียงใหม
ป 48 : ทําแผน 15 ป (/2549-2563)
N/W เครือขาย
ป 2547-2542
ทุกป
บริษัท ที่มีนวัตกรรม
(บริษัท จําลองเชิงนวัตกรรม/การบมเพาะ)
ระดับ Firm/Secter
เริม่ จากป 2542
CA ความสามารถการแขงขัน
(โดย ผูประกอบการเปนศูนยกลาง)
แนวคิด นวัตกรรม เชิงปฏิบัติ
Innovation เชิงนโยบาย
System&Cluster ¿
2549
Z
Y
X
เครือขายภาครัฐ,
ภาคเอกชน, ภาค
การศึกษา และมี
RDISC มี
สวนรวมเปนผู
ประสานงาน
เบื้องตนรวมกับ
หนวยงานทีส่ นใจ
วิวัฒนาการของพัฒนาการทางการสรางองคกรความรูและ
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
ระบบนวัตกรรมล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
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
ระบบนวัตกรรมแหงชาติไทย
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
เครือขายและความรวมมือ
Innovation
Key
Key
Selected
Character Prioritizati Departm Direction
istics
ents
on
Product
innovation
Process
innovation
Organisatio
nal
innovation
Market
innovation
Corporate
innovation
Note