University–Industry Linkages in Thailand: Sources of Weakness in Economic Upgrading

Abstract

Thailand has achieved impressive and consistent GDP growth over the past half century in large part through extensive economic diversification. Despite these gains, there is growing evidence that Thailand suffers from a significant gap between the advanced nature of its export structure and the much more modest technological levels of its own firms and labour force. Weak university–industry linkages (UILs) contribute to this problem, though there were sporadic success cases in some key industrial sectors representing high-tech, mid-tech and resource-based industries. The state of Thai UILs is a reflection of weak downstream demand by indigenous Thai firms, limited commercial focus and capacity within the university system and bureaucratic fragmentation. These problems in turn reflect the country’s broader political economy, including Thai development strategy, weak labour as well as business emphasis for upgrading, political fragmentation and the relatively low level of pressures (foreign exchange, external threats and popular protests) on Thai leaders to promote institutions that favour innovation.

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