The economic benefits of increasing technological intensity are widely acknowledged. The transition from traditional methods to more advanced technologies like tractors and automated production processes has significantly improved prosperity.
Thailand, like many other countries, has been striving to cultivate a local tech innovation ecosystem to support the growth of startups and tech unicorns.
Following the global financial crisis and the surge in global venture capital investment from 2007 to 2018, there was an optimism that every country could create its version of a mini-silicon Valley. However, despite concerted efforts from the private sector and the government, the startup activity in Thailand has not shown significant growth over the past five years.
The comparison with the UK, which sees thousands of funded deals annually, highlights the gap in startup activity between the two countries. Thailand’s ecosystem currently has 658 funded tech startups, while the UK boasts over 43 thousand.
The challenge lies in addressing the essential factors required for a successful tech startup ecosystem. It demands patient capital, a skilled workforce, supportive service providers, university innovation, favorable legal and tax frameworks, and a risk-positive culture.
Source: StartupBlink
Thailand needs to reassess its strategy and focus on integrating with global tech ecosystems to drive innovation and prosperity. Rather than trying to replicate Silicon Valley, the country should find its niche in global supply chains to create sustainable growth.
By aligning with smaller and midsized tech companies, emphasizing skilled labor, flexible policies, and strong digital infrastructure, Thailand can position itself as a hub for tech innovation. Collaboration with international partners and fostering a culture of innovation will be key to success.
Building bridges between local talents and global tech clusters will be crucial for Thailand’s tech renaissance. Embracing international collaboration and leveraging the expertise of established companies can pave the way for a thriving tech ecosystem.
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