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Global innovation-tj20151211

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Japanese global business challenge

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Global innovation-tj20151211

  1. 1. Global Innova*on Networking --Thailand-Japan Business Partnership-- Virach Sornlertlamvanich virach@gmail.com Sirindhorn Interna=onal Ins=tute of Technology (SIIT), Thammasat University, Thailand Gakushuin University, Tokyo, 11 December 2015
  2. 2. Thai and Japanese SME Thai SME! Japanese SME! Size S: M: Employee: less than 50 pers.! Capital: less than 50m Baht (170m Yen) Employee: 50-200 pers.! Capital: 50m-200m Baht (170m-700m Yen) SS: SM: Employee: less than 20 pers. (In case of manufacturing) Employee: less than 300 pers. Capital: less than 300m Yen (90m Baht) (In case of manufacturing)! Quan*ty! 2,763,997 (98.5%)! (477,142 manufacturers)! 4,200,000 (99.7%)! GDP contri.! 37.4% of total GDP! 53.8% of total GDP! Industrial cluster! .  Construc=on! .  Electronics parts! .  Automobile parts! .  Foods and drinks! .  Educa=on! .  Energy! .  Agriculture! .  Logis=cs! .  Tourism! .  Healthcare! .  ICT! .  Retail! .  Service! .  Foods and restaurant! .  Construc=on! .  Manufacturing! .  Real estate! .  Wholesale! .  Healthcare! .  Educa=on! .  Logis=cs! .  ICT ข้อมูลจาก สสว. ปี พ.ศ. ๒๕๕๖ และ Small and Medium Enterprise Agency, April 2014 Gakushuin University, Tokyo, 11 December 2015 国内総生産
  3. 3. SME in Japan 2008 Survey 12,000 (0.3%) 4,198,000 (99.7%) Number of Enterprise (total: 4.21 million) LE SME SMEs account for 99.7% of the total number of enterprises in Japan (4.21 million companies) Source: 2008 Census of Manufactures (METI, 2008) Establishment and Enterprise Census (MIAC, 2006) *reprocessed “White Paper on Small and Medium Enterprises in Japan” 41,713 (1.5%) 2,739,142 (98.5%) Number of Enterprise (total: 2.78 million) LE SME SME in Thailand 2012 Survey SMEs account for 98.5% of the total number of enterprises in Thailand (2.78 million companies) Sources: World Bank, 2011a Gakushuin University, Tokyo, 11 December 2015
  4. 4. JAPANESE SME Gakushuin University, Tokyo, 11 December 2015
  5. 5. Change in Supply Chain Structure Gakushuin University, Tokyo, 11 December 2015 Past : Strong supply chain, Group of enterprises (Keiretsu)! Present : Less manufacturing dependency, Market shrinking, Supply chain shrinking, Moving out of big enterprises! Cluster policy : Local SME + Local government + Local ins=tute! → New product, Product localiza*on Past Present
  6. 6. Japanese SME •  Strength –  High technology owner (TAMA: The Only One) –  High supply chain experience –  Aiming at globaliza=on of the market and supplied chain •  Obstacle –  Shrinking of supply chain •  mother company move out •  offshore sourcing •  aging and shortage of manpower) –  Lack of foreign market knowledge –  Lack of foreign investment knowledge i.e. •  regula=on, •  recruitment, •  local supply chain •  sourcing, •  investment partnership •  governmental suppor=ng unit –  Language barrier Gakushuin University, Tokyo, 11 December 2015
  7. 7. Japanese Government SME Policy Organiza=on for Small & Medium Enterprises and Regional Innova=on, SMRJ 商工会議所 SME大学 日本貿易振興機構 地方自治体 金融
  8. 8. Japanese Government Suppor=ng Network Organiza=on for Small & Medium Enterprises and Regional Innova=on, SMRJ 産学官連携
  9. 9. SME poten=al investment and status Gakushuin University, Tokyo, 11 December 2015 外国直接投資
  10. 10. THAI SME Gakushuin University, Tokyo, 11 December 2015
  11. 11. Source: Dr. Ki=pong Promwong Gakushuin University, Tokyo, 11 December 2015
  12. 12. Na=on Goal of R&D Expenditure Source: Dr. Ki=pong Promwong Gakushuin University, Tokyo, 11 December 2015 国内総生産 R&D expenditure 0.47% of GDP in 2013
  13. 13. Goal of Thai SME •  Development of OEM -> ODM -> OBM •  Value added with technology, Innova=on & Design •  Human resource development in technology, Innova=on & Design •  Thailand to escape the middle- income trap country (to be more than US$12,000) Gakushuin University, Tokyo, 11 December 2015 Country GDP per capita (US$), World Bank 2014 Singapore 56,287 Brunei 41,344 Japan 36,194 Malaysia 10,934 Thailand 5,519 Indonesia 3,492 Philippines 2,871 Vietnam 2,052 Lao PDR 1,701 Myanmar 1,204 Cambodia 1,010 12,000 国内総生産
  14. 14. Gakushuin University, Tokyo, 11 December 2015 Added Value Curve ??  Vision in 2010-2012  OEM -> ODM -> OBM  Source: Federa=on of Thai Industries (FTI), EE group
  15. 15. Issues for Thai SME •  Management : Require the inspira=on and commitment of the entrepreneurs themselves including a focus on building the network to exchange and share informa=on among them and also management skill. •  Marke+ng : They should create innova=ve products that create value for consumers, develop a modern packaging, develop cer=fied products and find marke=ng channels to cover the target in the lowest cost. •  Produc+on : they should access the technology to reduce cost in the produc=on process. •  Financial management and capital resources : Require financial and accoun=ng system and get more knowledge about costs and breakeven point. •  Technology : The technology in the working system including informa=on systems. •  Business networks crea+on : Entrepreneurs should find partners both in terms of produc=on and distribu=on •  Government support : Government should provide support for modern informa=on and knowledge related and the low-costs capital sources to strengthen compe==on both in domes=c and foreign countries. Gakushuin University, Tokyo, 11 December 2015
  16. 16. Thai SME Driving Factors •  Access to source of finance •  Technology and innova=on capacity •  Labor skill in terms of –  quan=ty –  high level skill –  produc=vity –  culture and language •  Interna=onaliza=on including –  entrepreneurial spirit –  business partner –  management –  regional produc=on network –  standard –  cer=fica=on
  17. 17. Thai SME •  Promo*on of Technology Transfer : improve the efficiency of tools for technology transfer •  Collabora*on for Research and Commercializa*on : provide the necessary knowledge to SME entrepreneurs, provided to advanced technology Gakushuin University, Tokyo, 11 December 2015
  18. 18. THAILAND-JAPAN SME COOPERATION Gakushuin University, Tokyo, 11 December 2015
  19. 19. Otagai Project (2012-2015) •  Promo=ng collec=ve and strategic Japanese direct investment in Thailand through industrial cluster partnerships between the two countries. –  Investment & Joint Venture –  Technology Transfer by Human Development –  Market Expansion –  Global Innova*on Network •  Japan SMEs seolement in Japan –  The domes=c market is limited –  Wages rising –  Order from Head Quarter only –  Lack of exper=se in marke=ng –  Lack of successor of technology Source: Daisuke Matsushima Gakushuin University, Tokyo, 11 December 2015
  20. 20. Source: Daisuke Matsushima Gakushuin University, Tokyo, 11 December 2015
  21. 21. Thai Government posi=on on Japanese SME investment in Thailand •  December 18,2014 : Gen. Prayuth Chan-ocha Prime Minister addressed a recep=on in the “Business-driven progress. Thailand - Japan” (Driving the Business Forward, Thai-Japan), organized by the Japanese Chamber of Commerce. •  For the investment, Prime Minister confirmed that current government policy will be based on economic liberaliza=on policies and welcome for foreign investment. The government will improve the regula=on, strengthen the investment environment and solve the problems and obstacles that may cause. •  Government not only priori=ze the investment from Japan, appreciate the exper=se in technology, standard and advanced manufacturing and also would like to invite the Japanese investors to establish the research and development ac=vi=es more in Thailand •  In addi=on to the economic partnership between Thailand – Japan under the Partnership Agreement on Japan-Thailand Economic Partnership Agreement: JTEPA , the ASEAN-Japan Comprehensive Economic Partnership: AJCEP and the ASEAN Economic Community in 2558. the liberaliza=on of trade in goods, services and investment, as well as the mobiliza=on of personnel will enhance the opportuni=es for Japanese investors more in the region. •  hop://www.thaigov.go.th/th/government-th1/item/87378-87378.html Gakushuin University, Tokyo, 11 December 2015
  22. 22. Support measures needed •  Government policy i.e. focus industry, privilege, suppor=ng arm •  R&D partnership i.e. academia, research ins=tute •  Manpower i.e. educa=on, training, Japanese expert Gakushuin University, Tokyo, 11 December 2015
  23. 23. Idea Innova=on Development Business JSMEs Local Technology Success case Thailand as a Partner of Global Innova=on Network Gakushuin University, Tokyo, 11 December 2015 Local Problem
  24. 24. Missing Link for Global Innova=on •  Techno Catalogue :- Database of technology •  Techno Show :- Innova=on Talk and Showcase •  Techno Match :- Business matching support •  Techno Intern :- Internship program, OJT •  Techno Study :- Site visit training Gakushuin University, Tokyo, 11 December 2015
  25. 25. Source: Dr. Ki=pong Promwong Gakushuin University, Tokyo, 11 December 2015
  26. 26. Source: Dr. Ki=pong Promwong Gakushuin University, Tokyo, 11 December 2015
  27. 27. Center for Industrial Research Coopera=on, SIIT Japanese Industry Review Product and service development Tes=ng and Evalua=on Market development propose select Japanese Subsidy Scheme : Large enterprise 1/2, SME 2/3 Center for Industrial Research Coopera*on, SIIT Japan - Industry Thailand -  University Thailand - Industry STI, MOST technology support research personnel and topic market, needs Thai STI, MOST Suppor=ng Scheme Gakushuin University, Tokyo, 11 December 2015
  28. 28. Thailand-Japan SME Partnership for Global Innova*on Business 1.  Empowering the Thai entrepreneurs for trading and investment in the ASEAN and other market. 2.  Promo=ng research and development of coopera=on between researchers, educa=onal ins=tu=ons and establishments both domes=c and foreign investment in research and development innova=on. Suppor=ng knowledge and technology transfer. 3.  Promo=ng innova*on personnel, in accordance with the requirements of the produc=on and service sectors. Gakushuin University, Tokyo, 11 December 2015

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