Technology Strategy Innovation and National Building Innovation

R & D investment in building technology and innovation is essential for national-building andhelps the country to overcome middle income trap effectively.In theory, technology and innovation are key drivers of economic growth. Robert Solow, 1987Nobel Prize-winning economist has created the theory of Economic Growth Theory (Growth Theory.)illustrating that the government can support economic development in many ways, for example ;education development, labor training, investment stimulation, resources transfer from low performanceindustries to high performance industries. But technology and innovation are considered the top priority(Garfield, 1988).There are empirical evidences suggesting that the development of innovation is correlated toeconomic development significantly. For example, Solow’s study reveals that two-thirds of US economicgrowth is due to technological advances. And in the research of Das, n.a. (or Chen and Dahlman) (2004)also found that technological development and innovation are correlated with long-term economicgrowth.When turning back to consider for Thailand, its economy still lacks of new engines to driveeconomic growth to a higher level. Thailand’s current economic growth has slowed down since themajor economic crisis in 1997 (World Bank, 2018).Although Thai economy has been restructured to higher-tech production level, but that is notsufficiently practical to be released from the middle income trap. Because most key technologies arestill imported from abroad, while many industrial sectors are still in the manufacturing stage, the middlesection of production chain that can no longer move into the early stage where research and development,branding, and design are taken place, and to the ending stage where product distribution,marketing, and after sale services are taken place which are higher profitable stages in the productionchain.Research and development in creating technology and innovation is essential for economicreconstruction and it is a key factor in creating a new engine for driving the country to be free frommiddle income trap. This paper, therefore, explores the situation of technology and innovationdevelopment in Thailand and provides suggestions that may be beneficial to the development oftechnology and innovation in Thailand.