Thailand stands at a critical juncture where it needs to transition from merely participating in global value chains to effectively capturing value. This shift is vital for the country’s economic growth and for boosting the competitiveness of its firms in the international marketplace. Recent discussions led by key stakeholders highlight the need for an innovative and strategic approach to achieve this transformation.
“We need to reformulate or adjust Thailand’s intellectual property framework to move from domestic innovation capability towards market trends,” she said, noting that the top five sectors applying for trademark and patent registration align with targeted industries.
One major initiative in this effort is spearheaded by the Department of Intellectual Property. The department is focusing on four key pillars to strengthen the intellectual property ecosystem, which is essential for “value capture.” For IP creation, a collaborative endeavor with the Ministry of Higher Education and innovation agencies is already underway, aimed at helping start-ups, SMEs, and academic institutions develop commercializable intellectual property. The goal here is to provide tools like self-check instruments, patent searches, and trend analyses that enable these entities to thrive.
“We may not need to have a big amount of filings, but we need quality patents that can be protected and commercialised,” Auramon said.
Moreover, a comprehensive overhaul of laws pertaining to IP protection is taking shape. Thailand is actively revising its patent, copyright, and industrial design regulations to address backlogs and streamline registration processes. This modernized legal framework aims not only to expedite approvals but also to facilitate Thailand’s accession to international agreements such as the Hague Agreement on industrial design. Fast-track registration channels have already been established for rapidly evolving sectors like AI, green technology, and digital solutions.
The department also recognizes the significance of commercialising IP effectively. In collaboration with the World Intellectual Property Organization (WIPO), advisory centers and IP management clinics have been set up to assist SMEs in strategically leveraging their intellectual property. This initiative is crucial for ensuring that businesses not only own but can also capitalize on their innovations.
Auramon pointed out the importance of geographical indications (GIs) in supporting rural communities, noting that 252 GI products have already been registered across various sectors, including both agricultural and non-agricultural industries. This emphasizes the cultural and economic value that such products can bring, further enhancing local economies.
Despite these advances, challenges remain, particularly in the realm of IP financing. While Thailand has had the Business Collateral Act for ten years, issues persist: only a mere 0.07% of the total value of intellectual property can currently be utilized under this act as collateral. Auramon attributed this limitation to banks’ hesitancies regarding IP valuation and the absence of secondary markets that would facilitate the reselling of IP assets.
In response to these challenges, initiatives are being launched in collaboration with WIPO and the Asian Development Bank to create a more conducive ecosystem for efficient IP financing. Auramon emphasizes that strengthening all four pillars of the IP value chain is essential for transforming Thailand into an innovation-led growth economy.
“Strengthening all four pillars of IP value chains is essential in this structural transformation to become an innovation-led growth economy,” Auramon concluded, emphasising that public-private collaboration is key to moving Thailand from technology absorption to domestic innovation capability.
The issue of rising debt burdens was also highlighted at a recent seminar, with Dr. Lakatos warning that increasing debt servicing costs could inhibit fiscal allocations for essential development priorities in emerging economies, including Thailand. The challenges of managing a shrinking fiscal space could impact fundamental sectors such as health, education, and infrastructure.
“The implication of this rising debt and interest payment is the shrinking fiscal space that governments can allocate to development priorities whether it’s health, education, infrastructure, climate,” she said.
According to the World Bank’s economists, limited access to long-term finance hampers private sector innovation and investment. To combat these issues, the World Bank is implementing concessional lending, guarantees, and blended finance instruments aimed at lowering capital costs and spurring private sector participation, especially in critical areas like climate and digital infrastructure.
Amid these discussions, opportunities for green financing came to the forefront, with speakers, including Batten, highlighting Thailand’s potential as a regional leader in this sector. Although the country is already seen as a model for neighboring nations, significant challenges exist in channeling available capital into green infrastructure projects, particularly those aimed at climate adaptation.
“Why isn’t all of that funding that exists in the region being channelled into more infrastructure and long-term financing?” Batten asked, pointing to uncertain revenue streams, evolving regulatory frameworks, and currency risk as key barriers.
He emphasized the need for aligning national frameworks with international standards to mitigate the risk of greenwashing, as well as developing innovative revenue models that engage private sector partners, especially in sectors like tourism. Batten also identified the urgency of deepening local currency markets to bolster long-term energy investments, pointing to Thailand’s coastal adaptation needs as a prime opportunity for public-private partnerships.
“How can we build partnerships locally with hotel providers, with tourism operators, with other beneficiaries of these ecosystem services to generate revenue streams that can incentivise investment in what is otherwise being traditionally a public sector activity,” he said.
The discussion on trade finance revealed important findings from UNCTAD’s research, which indicated strong correlations between global financial conditions and world trade volumes. Notably, a 1% rise in the US dollar against other currencies correlates with a 0.6% decline in global trade volumes within six months. The findings are particularly significant for Asian manufacturing economies, showcasing their vulnerability to financial volatility.
Trade finance was underscored as a critical issue, with the International Finance Corporation stepping up to support small and medium enterprises in this unstable environment. The need for innovative funding mechanisms to strengthen trade finance has never been more pressing.
As the seminar wrapped up, a sense of cautious optimism lingered regarding Thailand’s prospects for the next several years. Attendees emphasized the importance of building institutional capacity, practicing transparent debt management, and framing public investment strategies alongside immediate financing options.
“We started off with challenges that seem very hard to overcome, but we ended our talk with positive vibes in terms of what are the potential things that we can leverage,” the moderator said in closing remarks.
This event was part of ongoing efforts to align Thailand’s trade strategy with the rapidly changing global economic landscape, combining insights from both international development institutions and local policy experts.
