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Kosit Panpiemras, executive chairman of Bangkok Bank.the private sector. In December, the cabinet approved a policy that will let private companies use R&D expenses as a tax deduction. In February, the cabinet approved a “talent mobility” policy that allows researchers who received state scholarships to work on private projects and claim work in lieu of scholarship repayment. Such a policy is significant, as few Thai scientists end up working with private companies. According to the STI, only 6% of 10,676 PhD graduates work in the private sector.Science, technology and innova- tion have never been prioritized in Thailand. In the past, the country benefited from foreign companies building production plants, encour- aged by the relatively peaceful envi- ronment, convenient location and cheap labour here.But this will soon end, says Kosit Panpiemras, executive chairman ofBangkok Bank. The export sector, previously a big driver of economic growth, has slowed in the past two years. Foreign investors are finding new production bases in Vietnam, Indonesia and Cambodia. Thailand is stuck in a “middle income trap”, while Singapore has turned into a top developed nation.Mr Kosit said the situation might get more worrying when the ASEAN Economic Community (AEC) begins at the end of the year.“The AEC comes with opportuni- ties and challenges. One thing we need to ask is what the country will be like and what we are going to do when foreign and local companies go to invest in other countries in the AEC.”In the past, international and Thai policymakers have used economic stimuli such as cash injections or mechanisms such as tax and interest rates to boost spending and invest-ment. Kosit said such tactics only buy time and are not sustainable.“We cannot pin our hopes on the government to inject cash,” he said. “Past lessons in the world economy show that countries are likely to fail when trying to boost demand.”The best way for the Thai economy and Thai companies to be competitive and sustainable is to invest in R&D and produce original, well designed products and services with lower production costs and environmental impact. For Mr Kosit, the priority is to improve communication and collaboration between the business and research communities. The business sector has been overly concerned by the leaking of trade secrets.“Thai businesspeople usually complain that researchers live in ivory towers while researchers say business- men only care about selling products,”16 Elite+