A change in technology and skills in Thai industries : a case study of the electronics and machinery industries

ความเปลี่ยนแปลงทางเทคโนโลยีและทักษะในอุตสาหกรรมไทย : การศึกษาอุตสาหกรรมอิเล็กทรอนิกส์และเครื่องจักรกล

Name: Nathabhol Khanthacha

Name: ณัฐพล ขันธไชย

ThaSH: Machinery industry -- Thailand -- Research

Classification :.LCCS: HD9696

ThaSH: Rangsit university -- School of economics -- Research

Abstract: The main purpose of this research was to investigate a change in technology and skills in Thai industries during 1984 to 2000, particularly the electronics and machinery industries. Theoretically, technological changes are accompanied by an increase in efficiency and total factor productivity - an increase in total output without an increase in any accompanying inputs. For analytical purposes, data were collected from the survey of a sample of 40 firms from each of the industries. In the period of this study, the electrical appliance and electronic and machinery industries in Thailand experienced substantial enhancement in technology and skills. The improvement was a result not only from purchase of machinery and equipment from overseas, particularly from Japan, but also from more involvement of the firms in training of manpower and in research and development activities. The majority of the firms were involved in production and concerned with efficiency and product quality improvement. In both industries, skills in research and development, production, management, and marketing of local manpower were substantially enhanced. Analyses of production in the electronics and machinery industries in Thailand by means of the Cobb - Douglas production function revealed that total factor productivity (TFP) increased significantly during the period. The increase in the total factor productivity in the two Thai industries was contributable to improved technology and enhanced skills through the firms' provision of training to local manpower. Linkages with suppliers were also expanded. Over the years and despite the economic crisis in Thailand in 1997, the electronics and machinery industries continued to expand and became two of the principal forces of Thai exports. For these reasons, it can be argued with a certain degree of certainty that the increase in the Thai exports and economic growth, particularly from 1984 to 2000, were resulted from an increase in technology and skills which in turn gave rise to higher efficiency. One of the research findings, however, came out as a surprise in that it failed to support the interpretation of economic miracle in Asia put forward by Krugman (1994) that the Asian economic growth was mainly input driven, at least in the case of the machinery and electronic industries in Thailand. Major problems in technology transfer and development in the electronics and machinery industries in Thailand appeared to be concerned with the subsidiaries or technology recipients, the Thai government, and the parent companies or technology owners. For the recipients of technology and the subsidiary firms, language barrier and inadequate number of able personnel for absorption, adaptation, research and development purposes were the major problems. Additionally, cated tax system, inefficient administration system, and confusing and inflexible policies of the Thai government posed important bottle necks for technology transfer and development. As far as the parent companies and technology owners were concerned, moreover, their concealment of certain important technology as well as restrictive terms and conditions which affected marketing, purchasing, and pricing strategies of the technology recipients created some difficulties in technology transfer and development in the two Thai industries. Technology is regarded as one of the important vehicles for sustainable economic growth and enhanced competitiveness of Thai manufactured and agricultural products. For these reasons, it is advisable that more effort be made to tackle the various bottlenecks in technology transfer and development in Thailand. To further strengthen the technological capability in the Thai economy for sustainable recovery and business success, the following is suggested for policy consideration. Firstly, it seems necessary to increase the supply of manpower in the fields of sciences and technologies. For this purpose, more investment should be directed toward education at the technical and university levels in those fields. Since there is a surplus of supply of manpower in the fields of arts and social sciences, less attention should be given to the production of manpower in these areas. Secondly, More institutes for excellence in technologies should be established. Although an increase in supply of the manpower in the fields of sciences and technology is necessary but it is by no means sufficient. The institutes for technological excellence are required not only to absorb the increase in supply of the manpower but also to be involved in research and development activities which are crucial for the absorption and further development of technologies. Thirdly, Linkages between the industry on the one hard and the institutes for excellence in technologies and the universities on the other should be further strengthened. The linkages would provide important channels for practical experiences to flow from industries to the institutes for technological excellence and universities in which research and development activities are carried out. Results form these activities would be relevant and then would flow back to the industries for practical purposes. Fourthly, labour productivity should be continuously improved and an increase in wage rates should be justifiable by the increase in labour productivity. Finally, more efficient administration and less complicated tax system of the government are deemed necessary for sustainable recovery of the Thai economy and continued success in the private sector.

Rangsit University. Rangsit University Library

Email: library@rsu.ac.th

Name: Research Institute

Role: Funding By

Created: 2020

Modified: 2565-03-08

Issued: 2022-03-08

งานวิจัย/Research report

application/pdf

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