Thailand trails ASEAN peers in innovation

Thai businesses lag behind ASEAN peers in innovation and R&D, posing a serious threat to SME competitiveness, according to the World Bank’s Thailand Economic Monitor – February 2025. Only 11.9% of Thai firms adopt innovation in production, compared to 40.9% in the Philippines and 37.9% in Vietnam. Weak innovation and low R&D investment have contributed to widespread business closures—nearly 24,000 SMEs and over 1,200 factories shut down in 2024, affecting more than 35,000 workers. The National Economic and Social Development Council urged greater financing access to help SMEs adopt technology and improve productivity. Global trade tensions and rising costs have worsened the outlook. SMEs, which employ 12.9 million people, are central to stabilising jobs and incomes as Thailand seeks to regain industrial competitiveness.