In a cramped co-working space in Bangkok, 27-year-old Nattapong wrestles with a familiar frustration. His startup, a platform for sustainable agriculture tech, has a promising prototype but struggles to secure funding. “We have ideas, but the system here makes it hard to grow,” he says, gesturing at a stack of paperwork required for a government grant. Nattapong’s story is emblematic of Thailand’s broader challenge: a persistent lag in innovation that has placed it at the bottom of ASEAN nations, according to a recent World Bank report.
The report, which evaluates business innovation through metrics like technology adoption, research and development (R&D) spending, and novel business models, paints a sobering picture. Thailand, a regional manufacturing hub known for automotive and electronics exports, spends just 1% of its GDP on R&D—far below Singapore’s 2.2% or Malaysia’s 1.4%. Bureaucratic hurdles, limited venture capital, and a workforce not fully equipped for high-tech industries are key culprits. “Without a fundamental shift in how we educate and incentivize innovation, Thailand risks falling further behind,” warns Dr. Somchai Ratanakorn, a Bangkok-based economist.
Thailand’s manufacturing prowess, which accounts for 27% of its GDP, has long been a strength. Factories in Chonburi and Rayong churn out cars and circuit boards for global markets. Yet, this reliance on traditional industries leaves the economy vulnerable to disruptions like supply chain shocks or technological obsolescence. The World Bank notes that innovation drives productivity, which fuels GDP growth—a dynamic Thailand struggles to harness. Unlike Singapore, where government-backed incubators and smart tech investments propel it to the top of global innovation indices, Thailand’s ecosystem feels stagnant. 
The government’s Thailand 4.0 policy, launched in 2016, aims to shift the economy toward a value-based, innovation-driven model. Initiatives include tax breaks for tech startups and digital infrastructure investments. But progress is slow. Public and private R&D spending remains low, and bureaucratic red tape stifles entrepreneurs like Nattapong, who spent months navigating permits instead of developing his product. “Singapore makes it easy to start a business,” he says. “Here, it’s a maze.”
Education is another bottleneck. Thailand’s system, rooted in rote learning, often prioritizes memorization over creativity or critical thinking. Only 12% of tertiary students pursue STEM (science, technology, engineering, and mathematics) fields, compared to 25% in Singapore, according to UNESCO data. This gap limits the pipeline of skilled workers needed for high-tech industries. “We’re not preparing students for a digital economy,” says Dr. Pimchanok Srisuk, an education reform advocate. “We need coding bootcamps, not just textbooks.”
Public sentiment, especially among younger Thais, reflects growing frustration. On social media platforms like X, hashtags like #InnovateThailand trend among Gen Z, who demand better access to tech education and startup funding. “We have the talent, but not the support,” posted one Bangkok-based entrepreneur, echoing a common refrain. Business leaders, too, are vocal. The Thai Chamber of Commerce recently called for streamlined regulations and more venture capital to boost the startup scene.
The economic stakes are high. A lack of innovation could deter foreign investment, as multinational corporations increasingly favor markets with dynamic tech ecosystems. Thailand’s tourism sector, which contributes 20% to GDP, is also at risk as global travelers demand tech-driven experiences, from smart hotels to AI-powered travel apps. If unaddressed, the innovation deficit could trap Thailand in a middle-income rut, unable to compete with ASEAN peers like Vietnam, which has attracted tech giants like Samsung.
There are glimmers of hope. The government has pledged to review the World Bank’s findings, with plans to boost STEM education and foster public-private partnerships. A recent initiative to fund 100 tech startups by 2026 has raised eyebrows, though skepticism persists due to past delays. For Nattapong, the clock is ticking. “I want to stay and build something here,” he says. “But if things don’t change, I might have to look elsewhere.” Thailand’s ability to nurture talents like him will determine whether it can catch up in ASEAN’s tech race—or fall further behind.
