This report examines how to develop SME and entrepreneurship policy in Thailand to strengthen Thailand’s regional innovation clusters and the sectors that will act as engines for Thailand’s future growth. In particular, it examines the policy developments needed to strengthen the innovation cluster in Chiang Mai and Chiang Rai in the North of Thailand, built around the advanced agriculture and biotechnology and food-for-the-future sectors, and draws broader lessons for Thai SME and entrepreneurship policy.

This report examines how to strengthen regional innovation clusters and sectors driving future growth in Thailand by stimulating innovative start-ups and scale-ups. It explores the case of the advanced agriculture and biotechnology and food-for-the-future cluster in the Chiang Mai and Chiang Rai regions in northern Thailand. However, it also has important lessons for the development of a new generation of SME and entrepreneurship policies for all the future driving sectors in the Thai economy, as Thailand seeks a shift to a more innovation-based small business economy in the post-COVID-19 recovery.

This chapter analyses the regional economic context for the development of start-ups and scale-ups in the advanced agriculture and biotechnology sector and the food-for-the-future sector in the Chiang Mai and Chiang Rai regions in Thailand. It provides information on the regional industry sector specialisations, characteristics of the regional entrepreneurial ecosystem, including its anchor institutions such as universities, and the government support policies for SMEs and entrepreneurship in the regions. The chapter makes recommendations on strengthening approaches to the implementation of SME and entrepreneurship policy in the regions.

This chapter assesses how policy can improve regional entrepreneurial ecosystem conditions for start-ups and scale-ups in advanced agriculture and biotechnology and food-for-the-future in the Chiang Mai and Chiang Rai regions in Northern Thailand. It assesses the various regional access to resources conditions (connectivity infrastructure, demand for relevant products, business services, talent and skills, access to knowledge, ecosystem leadership and finance) and institutional conditions (regulations, entrepreneurial culture, and networks) for start-ups and scale-ups. The chapter makes policy recommendations to strengthen the regional entrepreneurial ecosystem.

This chapter examines how to strengthen business development services for start-ups and scale-ups in the Chiang Mai and Chiang Rai advanced agriculture and biotechnology and food-for-the-future cluster. It covers advice, consultancy, mentoring and management training. It starts by proposing avenues for improving business development services in Thailand, including by creating a more integrated business development services system, developing more online support, introducing a voucher system and expanding mentoring. It then focuses on creating a new “fast-track” strand of support for start-ups and scale-ups with innovation and exporting potential. Features include connections with private suppliers, a client-centred approach, and a structure to co-ordinate business development services suppliers in the cluster. The role of business incubators in business advice is also briefly discussed. The chapter ends with conclusions and recommendations.

This chapter examines the potential for inward foreign direct investment (FDI) to stimulate SME participation in the advanced agriculture and biotechnology and food-for-the-future regional innovation cluster in Chiang Mai and Chiang Rai. FDI is likely to be attracted to the cluster in response to growth in its endogenous research, skills and entrepreneurship activity rather than act as the main stimulus for its development. However, there are policy actions that can be undertaken to build the value proposition to incoming FDI, strengthen regional FDI promotion, and develop FDI aftercare and embedding activities. The creation of a cluster management organisation for advanced agriculture and biotechnology and food-for-the-future in Chiang Mai and Chiang Rai could play an important role.

This chapter examines new industry path development opportunities in advanced agriculture and biotechnology and food-for-the-future in Chiang Mai and Chiang Rai. These can occur through the integration of scientific biotechnology knowledge in the products of start-ups and scale-ups together with integration of engineering and marketing knowledge in these firms. A regional cluster management organisation could enable the exploitation of these opportunities by creating linkages between SMEs and universities and research organisations for the exchange of knowledge to promote new product development and sales.