Implications of Technology Management and Policy on the Development of a Sectoral Innovation System: Lessons Learned Through the Evolution of Thai Automotive Sector

Patarapong Intarakumnerd and Nathasit Gerdsri ()
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Nathasit Gerdsri: College of Management, Mahidol University, 69 Vipawadee Rangsit Road, Phayathai 10400, Bangkok, Thailand

International Journal of Innovation and Technology Management (IJITM), 2014, vol. 11, issue 03, 1-19

Abstract: This paper examines how a sectoral innovation system evolves over time and what the underlying factors derive from the development of automotive industry in Thailand which is presented as a case example. Since 1960's, the government policies and the development of liberal investment climate have been a push for the influx of large-scale foreign direct investments (FDI) in Thailand. Automotive industry has also been targeted as a major assembly base of foreign carmakers while the local suppliers were mostly slow and passive learners. In the late- 1990's, foreign carmakers began acting as "lead" firms to invest in R&D and related activities. This induced positive coevolution in other actors, especially the first-tier foreign suppliers and some local suppliers, in the sectoral innovation systems which, in turn, became stronger, more coherent and product-specific. According to Thailand Automotive Institute (TAI), the production volume is expected to grow to two million units by 2015 which would bring Thailand to be on the top-ten list of the largest auto-producers in the world. This research paper has implications on the concept of sectoral innovation system, corporate technology strategies and government technology and innovation policies.

Keywords: Sectoral innovation system; industrial evolution; industry lifecycle analysis; automotive sector; Thailand (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (5)

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DOI: 10.1142/S0219877014400094

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