Either you start your business or bootstrap your startup in Thailand, you must know about the respective ecosystem of the industry in the nation. This article is going to explain the startup ecosystem of Thailand vividly in reference to the GII indices. Global Innovation Index (GII) is one of the trustworthy metrics for entrepreneurs in deciding the nation suitable for their business.
Every entrepreneur wants to begin their firm in the greatest feasible setting and business climate to ensure its success. The Global Innovation Index (GII) is a set of data that compare Thailand’s startup ecosystem to the ecosystems of other countries. The index is based on data from the previous three years (2018, 2019 and 2020). Additionally, it provides insight into countries that are investing in technology to grow their economies.
The GII gives entrepreneurs a clear picture of some of the challenges they’ll face when starting a tech venture in Thailand, as well as some of the country’s advantages. When it comes to starting a business, every country offers advantages and disadvantages.
Similarly, each company faces hurdles in terms of its formation and methods to run its business. Therefore, you should focus on the strengths and limitations of Thailand’s startup ecosystem. This allows you to see if the strengths are a good match for your needs and if the flaws are a serious danger to your startup’s success.
The GII ranks countries on the basis of seven factors in two sub-indexes, with a country’s relative wealth playing a role in the rankings as well. The country’s innovation inputs and outputs are the two sub-indices. The categories on the input side of the formula are:
- Institutions
- Human Capital & Research
- Infrastructure
- Market Sophistication
- Business Sophistication
The formula’s output side reflects:
- Knowledge and Technical Outputs
- Creative Outputs
Economic Status of Thailand
According to their GDP, the countries have four categories that show their affluence as a country. They are divided into four groups: high-income, upper-middle-income, lower-middle-income, and low-income. Thailand has the ranking of 4th out of 37 upper-middle-income countries. Thailand is ranked 17th in the region, out of 17 countries in Southeast Asia, East Asia, and Oceania.
The addition of this wealth grouping provides further insight into a country’s performance in comparison to other countries. Thailand is doing exceptionally well in this aspect. Thailand’s performance will improve as greater emphasis is placed on technology businesses, bringing it closer to that of other, wealthier countries.
Strengths of Thai Economy
Thailand has a great reputation for invention, which is surprising given its development level. To enhance its economy, the country is successful in converting its innovation investments into innovation outputs.
This fact alone should inspire confidence in Thailand’s venture capitalists and investors. Only three of the seven categories used to generate the rankings now show a deficit for the country.
Weaknesses of Thai Industries
Thailand is maturing in both market and commercial sophistication, something that more industrialised countries have yet to achieve. Thailand ranks significantly higher than other countries with significantly more wealth than Thailand.
However, the country continues to rank in the sixties in Institutions, Infrastructure, and Human Capital & Research, with number one being the aim. Institutions and Human Capital and Research are inextricably linked. Human Capital & Research rankings will continue to suffer unless eligible schools establish a technology-focused curriculum.
The country’s still-developing economic rating also contributes to the country’s poor Infrastructure score. Thailand must make a deliberate effort to improve both the quality of its education and the infrastructure required for Thailand’s startup ecosystem to compete in the global arena.
Your Take!
Thailand is now ranked 44th out of 131 countries, including those in the upper-income group. Thailand 4.0 is a new aim for the country, and it will take time to achieve. However, with Thailand’s universities and institutions redeveloping their educational systems to address STEM subjects and fulfil the expectations of Thailand 4.0, it won’t be long before a slew of new, competent recruits flood the Thai startup ecosystem.
This can be a great call for you. Moreover, if you are planning a startup in Thailand based on Digital systems or technology, stay assured of great cooperation from the Royal Thai Government. Along with tax benefits, you can receive waivers on utility and transportation services in the country. However, to understand and utilize these, you need good legal counsel and backup. Mail us at [email protected] to book your free consultation session with us.
