Internationalization of SMEs : NSTDA’s Experience

1. Internationalization of SMEs:NSTDA’s Experience Prof. Dr. Chachanat Thebtaranonth Senior Advisor , NSTDA President, Thai Business Incubators and Science Parks Association, Thai-BISPA “Build A Co-incubation Network”, 2011 APEC Business Incubation Forum Sept 6-8, 2011 Shangri-la Hotel, Xi’an, China

2. Outline of Presentation 2 National Science and Technology Development Agency : NSTDA Support for STI Activities Facilities Support, R&D Support, Financial Support, IP & Business support Mechanisms to Promote Internationalization of SMEs Business Matching, Technology transfer, Fusion of SMEs, Commercialization of Technology, Nominations for Awards, Coaching, Soft-Landing Co-Incubation:the new paradigm

3. Vision Vision NSTDA is a dependable partner on the path towards a knowledge-based society through science and technology. Mission NSTDA is committed to promotingresearch and development to strengthen Thailand’s sustainable competitiveness, complemented withtechnology transferand development of human resourceandinfrastructurein science and technology, with utmost effectiveness of outcomes as a goal. National Science and Technology Development Agency An autonomous agency under the Ministry of Science and Technology 3

4. NSTDA: Support for STI Activities R&D Intensive Technology Intensive Skill Intensive Labor Intensive • Business and IP • Technology Business • incubation • IP management • IP commercialization • Infrastructure/Facilities • Thailand Science Park • - Software Park Thailand • R&D/Technology • Contract/Joint research • - Industrial consultancy • Testing and analytical services • Information and technology • acquisition • Financial • Research Grant • Soft loan • Joint investment • Tax incentive program • for R&D expenditure • Human Resource • Training • Specialist database • specialist recruitment NSTDA already supported more than 2,000 companies

5. NSTDA:Facilities Support Thailand Science Park Area:80 Acres Space: 140,000 sqm(300,000 sqmfor whole project)‏ National Research Centers : BIOTEC, MTEC, NECTEC, NANOTEC Space for private sector: Incubator units, multi-tenant buildings, long term leased land At present • 60 companies in operation • ( 70%Thai, 30% international) Projection in 2012: • Additional 40,000 sqm available for private sector • 200 companies • 4,000 knowledge workers

6. NSTDA:Facilities Support Thailand Science Park - Phase 2 “Work-Life Integration Concept” • Four integrated towers • Gross area of around127,000 sq.m., Net area of72,000 sq.m. • 40,000 sq.m. allocated for private companies • Clean room, sensitive lab, heavy equipment areas available

7. NSTDA:R&D Support BIOTEC - Services • Bioactive compound screening • Microbial testing service • Cytotoxicity tests with mamalian and insect cell lines • Mycoplasma testing of cultured cells • Monoclonal Antibody Production Scaling-up Service • Enzyme testing service

8. Powder Characterization Laboratory NSTDA:R&D Support MTEC - Research Units • Mechanical Properties Testing • Spectroscopy Laboratory • Thermal Analysis Laboratory • Electrical Properties Measurement • Scanning Electron Microscopy /X-ray Microanalysis Laboratory • Transmission Electron Microscopy /X-ray Microscopy (TEM) Laboratory • XRD / XRF : X-ray Techniques Laboratory • Optical Microscopy / Image Analysis and Sample

9. NSTDA:R&D Support NECTEC - Research Laboratories • Computer and Peripheral Testing Laboratory • Embedded Systems Laboratory • Human Language Technology Laboratory • Industrial Control and Automation Laboratory • Image Technology Laboratory • Knowledge Elicitation and Archiving Laboratory • Large Scale Simulation Research Laboratory • Nano-Electronics and MEMS Laboratory • National Security Technology and Innovation Laboratory • Network Technology Laboratory • Open Source Software Development Laboratory • Optical and Quantum Communications Laboratory • Photonics Technology Laboratory • Software Engineering Technology Laboratory

10. NSTDA:R&D Support NANOTEC - Services • Size determination and size distribution analysis of nano-materials by Dynamic Light Scattering techniques • Nano-structure and surface analysis by Atomic Force Microscope (AFM) and Environment Scanning Electron Microscope (E-SEM) • Element analysis by Energy Dispersive X-ray (EDX) • UV-Visible Spectrophotometer • Thermal analysis instruments: Differential Scanning Calorimetry (DSC) and Thermo Gravimetric Analysis (TGA) • Antimicrobial Tests

11. NSTDA:Financial Support Examples Company Directed Technology Development Program: CD: CD provides “financial support” in the form of low-interest loans to companies forR&D, production process improvement, and product improvement NSTDA Investment Center : NIC “ ..promotes private sector investment in science and technology by co-investing i.e. forming joint-venture enterprises..” Research and Development Certification Committee: RDC “ …tax incentive for companies to undertake R&D activities by allowing double deduction for R&D expenses

12. Technology Commercialization IP Registration Market-oriented research promotion NSTDA:IP & Business Support Technology Licensing Office (TLO)

13. NSTDA:IP & Business Support Techno-business Incubation Supportive Services to foster business to success Workspace and facilities Business and Technical Training Coaching / mentoring and consultation Business networks and Alliances Business Matching Start-up companies Access to industry experts Access to Market/Trade Exhibitions Access to venture capital financeinstitutes

14. Software Park Thailand • Opened 2001 • Incubator for development of software • Market information service • Training center for software engineering • Software testing and certifying service • Provision of hardware and software for shared use

15. Thailand Science Park, TSPTechno-Business Incubator Pre-Incubation Incubation Regular Tenant Graduate from Incubator Fund Raising Business Plan Expand out Of TSP Business & Tech Consultation Grow & Prosper in TSP Business Idea Company Start-up 6 months 1-3 years

16. NSTDA: Mechanisms toPromote Internationalization of SMEs Techno-Business Matching Technology Transfer: Overseas Experts Fusion of SMEs, Commercialization of Technology, Nominations for Awards, Coaching, Soft-Landing

17. Identify and Screening Candidates Candidate Coaching and Preparation Business Matching Trips Post Trips Summary Follow up Matching Results Techno-Business Matching Overseas Trips Trips • Thai Smart Co., Ltd • (Software outsourcing) • Joined Brunei Delegation Program in 2009 • Signed contract with the Office of the Prime Minister of Laos to develop accounting Software and continuing with other software. • Continue expanding businesses in Laos. • Currently developing Mobile application for a company in Laos Business Competitive Intelligence Co., Ltd (software ERP for factory management) Joined Japan Delegation Program in 2010 Became business partner with Toyota-Japan Implemented ERP system at Burma 150% revenue increase from Year 1 to Year 2

18. Techno-Business Matching Inbound Trips Collaboration between iTAP/TMC and iRAP/NRC Canada during 2002-2008 Techno-Business matching between Ek yongwong Group and CROP Canada Established Thai-Canadian joint venture company “Thai-Canadian Real Organic Products Co., Ltd.” to manufacture organic fertilizer

19. Techno-Business Matching InnoBiz Event:Meet the Angels Identify and Screening Candidates Candidate Coaching and Preparation Business Matching Events Post Events Summary Follow up Matching Results 1st Round screening 2nd Round screening Training Pitching Day Organize InnoBiz Matching Day (Pitching to Investors) Future Plan to internationalize Provide technical Training to prepare for 15 min pitching 15 companies: Software 80% Biotechnology 20% 28 companies

20. Challenges EU new regulations : Lead is prohibited Search for new material to substitute for Lead with low production cost iTAP Assistance Specialists from UK and USA to develop new material, use of Zinc instead of Lead Outcome First to market World class innovation : environmental friendly Tire balancing Technology Transfer: Overseas Experts ITAP Tire balancing Weights Rubber Track Mould Mate PC Products International • Challenges • Want to create high value products from natural rubber • New Regulation : Rubber Track to substitute Metal Track for environmental friendly tractors • ITAP Assistance • Specialist from China to develop new design and process of rubber track • Outcome • First in Thailand to market the 100% natural rubber track • Create new brand “Star Track” • Set up new company for new market opportunity • 95 M Baht Export to EU in first year

21. Fusion of SMEs to enhance Internationalization ITAP: Lanna Collection (Lanna = Northern Thailand) Group of SMEs each from a different industry joined together to co-design their products under the theme “Lanna Collection” under the guidance of ITAP experts from Japan, U.K., Italy, Thailand etc. e.g. Ceramics such as floor tiles and tableware, carpets, rugs, cement roof tiles, interior decorations items made from textiles, wood, metal, etc. Accentuating “green”, “eco-friendly” and global market trends Workshops, Market research, joint exhibitions, lead to internationalization of the Lanna Collection

22. Lanna Collection 22

24. Commercialization of TechnologyInternationalLicensing Licensee: AllwellsPte.Lcd (Singapore, Licensee of Red Bull in SEA) Licensed: preparation and use ofCentella asiatica extracts and research work on Centellaasiaticaand lemongrass’ antioxidant and antitumor activities. To produce extracts for drinks, supplements etc. TLO is developing international commercialization capability to help SMEs

25. Coaching, Award Nomination Flexoresearch Group Co.,Ltd. (Enzyme for Recycle Paper Pulp) Incubation Duration: Entrance: Aug., 2007 – Graduated Mar., 2009 Incubation Activities: In-kind value $U.S.9,000 included; - Training in business management - Lab Space - Coordination with researchers - Exhibition inside country(2 times) and outside country (5 times) - Business meeting and matching with foreign company - Consultation for term and condition in developing any contacts and MOU - IP and Technology Licensing consultation - Market expanding consultation Resultsduring 2007-2010 : - Awards : 7 international awards included Technology Pioneer 2011 in World Economic Forum 2011. - IP: 6 patents with 3 trade secrets - Licensing to company in South Africa that cover 12 countries in South Africa in 2011 - Investment in recycle paper pulp manufacture in Malaysia in 2011 - Spin off Flexoresearch Group International Co., Ltd. for international trade in 2011

26. Coaching, Award Nomination NEW WORLD BIOTECH Co., Ltd. ( Kits for shrimp farming: detection and prevention of disease) Incubation Duration: Entrance: May , 2009 until now. Incubation Activities: In-kind value $U.S.4,500 included; - Training in business management - Lab Space - Coordination with researchers - Exhibition inside country(2 times) and outside country (1 times) - Business meeting and matching with foreign company - Consultation for term and condition in developing contacts and MOU - Market expansion consultation Results during 2009- now: - Awards : 2 international awards . - IP: 2 patients - Investment in fishery industry (shrimp and fishing fleet) in Sri Lanka under spin off company (joint venture company) in 2011.

27. Awards Won 27

28. Soft-landing Program Korea Technology Business Incubator @ TSP (KTBI@TSP) established in 2010 in a new Incubator Building (400 sq.m) To be a soft-landing space for Korean Technology Businesses expanding their operations into ASEAN market. To facilitate network and linkage between Thai & Korean Technology Businesses. 7 Korean companies have already sent in their applications. 28

29. Co-IncubationThe new paradigm 29 Internationalization of start-up companies is best commenced by first stepping out into regional markets The market in APEC countries is enormous The incubators in APEC are ripe for co-incubation in terms of quantity and quality. Network of APEC incubators already exist

30. Co-IncubationThe new paradigm 30 Current global trends in open innovation encourages collaboration between companies Joint research and development opportunities exist Share each others’ resources and services Speed to market in co-incubator country Easier and not expensive for SMEs

31. Co-IncubationThe new paradigm 31 High potential benefit to entrepreneurs, incubatees, incubators, intermediaries, governments, private organizations who are involved in commercialization of technology, technology transfer, and promotion of innovation-driven economy.

32. Thank You Website : www.nstda.or.th