2

The Concept of Four Bio-Based Transformation Paths

The course and effects of bioeconomic transformation processes depend, among other aspects,
Global Market on the development level, resources and political system of a given state.
GDP share

Economy
Mediators
Industry Markets & Trade

in Thailand Drivers Knowledge &

Innovation Transfer
Underlying
Population & Constraining Governance
Economic Growth
Consumer Preferences
Climate Change
TP1: Fossil Fuel Substitution Outcomes
Investment
TP2: Boosting Primary Sector Productivity
Incentives
in EEC Proximate TP3: New & More Efficient Biomass Uses
Technological Innovation
Policies TP4: Low-bulk & High-value Applications

Enabling Governance

Related Context
Agencies Natural Resource Endowment
Infrastructure
Science & Education System
Bioeconomy

Source: Dietz, T., Borner, J., & Braun, J. J. (2018). Governance of the Bioeconomy: A Global Comparative Study of Time
National Bioeconomy Strategies. Sustainability.
 3

Possible Opportunities and Risks of Bioeconomic Transformation

Sustainability Dimension (SDG) Opportunities Risks
Global Market
Increase via higher yields and Reduction due to food price
Food Security (SDG 2)
new production methods increases

Reduce via transfer of Increase via exclusion from

Poverty/Inequality (SDG 1, 10)
technology and leapfrogging technical progress

Industry Natural Resources (SDG 7, 14, 15)

Conserve by improving Degrade/loss through inefficient
production methods production and overuse
in Thailand
Improve through new and Risk/damage through improper
Health (SDG 3)
refined forms of therapy use of risky technologies

Mitigate through emission Exacerbate through direct and

Climate Change (SDG 13)
Investment reductions indirect land use change
Incentives
Source: Dietz, T., Borner, J., & Braun, J. J. (2018). Governance of the Bioeconomy: A Global Comparative Study of
in EEC National Bioeconomy Strategies. Sustainability.

Related
Agencies
 4

Transformative Pathways by Country

Global Market

Industry
in Thailand

Investment
Incentives
in EEC Legend
No Strategy
Two TP
Three TP
Four TP
Related
Agencies All countries with explicit bioeconomy strategies aim to foster transformation processes along at least two of the pathways.
The majority of industrial nations, as well as some emerging economies, envisage or currently implement more diversified
strategies along all four transformative pathways.

Source: Dietz, T., Borner, J., & Braun, J. J. (2018). Governance of the Bioeconomy: A Global Comparative Study of National Bioeconomy Strategies.
Sustainability.
 5

Thailand’s Bioeconomy Timeline

PHASE 1 (2017-2018)
Global Market Further Develop Bioenergy
• Improve seedstocks and procure machinery needed
• Extend projects in existing areas: Bioenergy, Biopharmaceuticals
• Prepare for the development of biorefinery to make high-valued PHASE 2 (2019-2021)
bioproducts Develop Biorefinery Complexes
Industry
and Biopolis
in Thailand
• Expand cultivation areas
• Construct integrated biorefinery complex
that handles not only production but also
research and development and environmental
protection, heading to biopolis
Investment • Develop and expand high-valued bioproducts
Incentives with cooperation from all stakeholders in
bioeconomy
in EEC
PHASE 3 (2022-2026)
Move Towards Regional Hub:
a Model for Future Industries

Related • Upgrade Thailand into

a regional hub for bioproducts
Agencies
• Construct prototype factory
and pharmaceuticals production
facility for commercial purpose

Source: BOI
 6

Thailand’s Bioeconomy Industry

The Royal Thai Government recognizes the importance of sustainable economic development.

Global Market Various policies have been introduced to address technological, economic and institutional challenges
to move the country towards a sustainable bio-based economy

Industry
in Thailand

2004-2021 2008-2015 2012-2036 2015-NOW

Thailand’s Bio-technology
Investment Framework
Incentives
in EEC The framework includes
a policy of Green Innovations for
Economic Security, Competitiveness
and a Healthy Society
and targets 4 critical sectors:
Food and Agriculture, Medicine and Health,
Related and Bioenergy and Bio-based Industries
National Bioplastic Roadmap
A national agenda to establish
a complete supply chain for
the bioplastic industry in Thailand.
The policy focused on the development
of R&D, supporting infrastructure and
innovative businesses for bioplastics
Alternative Energy
Development Plan
This plan aims to replace
the country’s dependence
on imported fossil fuels with
domestically produced
renewable energy
Thailand 4.0 &
the new S-curve
The new “Thailand 4.0” growth model
focuses on the concept of inclusive,
productive and green growth
to enhance the country’s competitiveness
and economic development.

Agencies
Source: BOI
 7

Three’s Company: The Thailand Bioeconomy

Thailand’s bioeconomy can be broken down into 3 groups
Global Market

Biochemical Bioenergy Biofarming

Industry
in Thailand
• Bioplastics (using extracted • Bioethanol • Improved farming methods – (precision farming-
plant starches – lysine) • Biodiesel co-developed with other industries)
• Biopharmaceuticals (medicine herbs, • Bioelectricity • Bio-based agricultural inputs – (herbicides, fertilizers

Investment extracts, Chinese medicines) and pesticides)

• Germplasm improvement – (disease/drought resistance)
Incentives • Bio-additives (starches, antioxidant,
vitamin powders to enrich food/feed)
• Bio-control (using soil micro-organisms and fungi

in EEC to treat crops against pests)

Raw materials Local government bodies Well developed country Logistics

Related Excellent source of raw materials Support from government authorities The country has well developed: Strategic location

Agencies • Sugar Board of Investment, Ministry of Commerce, • Government • Close to two main seaports
• Starch (rice, cassava and sugarcane) Office of Sugarcane and Sugar Board, • Education • Air links regionally and globally
• And for the future: biomass Industrial Estate Authority of Thailand • Infrastructure
• Co-funded R&D (government and private sector) • Utilities

Source: SEI Group

 8

It all started with the Big Bang!

The biochemical industry remains one of the most important sectors for the Thai economy
Global Market
due to its ability to add significant value to raw agriculture products.

Biochemical Production in Thailand

Industry
in Thailand Lactic acid Sorbitol Oleochemicals
140,000 t/yr 43,000 t/yr 120,000 t/yr
Citric acid Lysine
15,000 t/yr 47,000 t/yr
Investment
Incentives
in EEC
Stage Year Goal
1 2017-2021 Full Production for Biopharmaceutical Product

Related 2 2022-2026 Performance Improvement

Agencies 3 2027-2031 International Recognition for Production and Quality Control of Biopharmaceutical Products

4 2032-2036 Top 5 Biopharmaceutical Production in Asia

Source: BOI
 9

Investment incentive package for investment projects in the Eastern Economic Corridor (2020-2021)

For targeted Targeted

acitvities in designated locations
activities
Key features Investment Incentives
Section 8 A1 A2 A3
Global Market 10 Years 8 Years
1. Standard tax package Tax holidays 8 Years 5 Years
(no cap) (no cap)

Human resource development programs (additional tax incentives)

2. Investment projects which 2 Years - - -
Tax holidays
are engaged in human (no cap)
resource development programs -
50% reduction of CIT 3 Years 3 Years 3 Years
Industry
Projects located in the four promoted zones for specific industries (EECi, EECd, EECa and EECmd)
in Thailand OR industrial estates and promoted industrial parks
Tax holidays 1 year (no cap) - - -
3. Investments located in
EECi, EECd,EECa and EECmd
50% reduction of CIT - 2 Years 2 Years 2 Years

OR
Investment
Incentives 3. Investments located in industrial
Tax holidays 1 year (no cap) - - 1 Year

in EEC estates and promoted industrial

parks. 50% reduction of CIT - - - -

Remarks:
A1 : Knowledge-based activities focusing on R&D and design to enhance the country's competitiveness.
A2 : Infrastructure activities for the country's development, activities using advanced technology to create value-added, with no or very few existing investments in Thailand.

Related A3 : High technology activities which are important to the development of the country, with a few investments already existing in Thailand.
Section 8 : Technology and Innovation Development includes targeted core technology development such as development of biotechnology, nanotechnology,

Agencies advanced materials technology and digital technology.

New investment promotion measure in EEC

Supporting
- Starting January 2, 2020 Facilities
20
According to the announcement of the Board of Investment No.2/2563, announced on January 15th, 2020,
- Applications must be submitted by the last working day of 2021.
- Projects located in the four promoted zones for specific industries (EECi, EECd, EECa and EECmd) are eligible for the incentives without application deadline.
 industry, there was additional support offered in the form of education
and research grants. Since the implementation of the Thailand 4.0 policy
in 2015, the industry has also witnessed a spike in resources available for
porting
ilities
Supporting
Facilities
research & development and research hubs. This is primarily the result of
the push within the Thailand 4.0 policy to encourage greater partnerships
10
21
between the public sector, private sector, government agencies and educational
institutions.

Supporting Associations
Section
Associationsand Institutions
Activites
and Institutions Research Centers
Research
Section
Centers

Facilities
Department of Science Service (DSS)
Department
underofthe
Science Service (DSS)
Global Market Operating
andOperating under
Technology, DSS
auspices
the
has
of the
auspices
a mandate
Ministry of Science
of the
toMinistry
conductof Science
R&D
Biochemical Engineering and Pilot Plant Research
Biochemical Engineering
and Development and Pilot King
Laboratory PlantMongkut’s
Research
and Technology, DSS has a mandate to conduct R&D
and product testing through innovative technologies.
Activites
andUniversity
Development Laboratory King Mongkut’s
and product testing through innovative technologies of Technology, Thonburi
University of Technology, Thonburi
ushing for the Development of Plastics Institute of Thailand (PITH)
Plastics Institute of Thailand (PITH)
Supports the Thai plastics industry and offers R&D and
he Bioeconomy Supports the Thai plastics industry and offers R&D and
product testing for the industry.
product testing for the industry. Marine Biotechnology
Marine Laboratory
Biotechnology Laboratory
Faculty of Science,
Faculty Chulalongkorn
of Science, University
Chulalongkorn University
ernment agencies came to further realize the importance of the National
National Innovation
Innovation Agency
Agency (NIA)
(NIA)
Advocatesfor
forR&D
R&Dfor
for innovative
innovative products
productswhilst
Industry
Advocates whilst
, there was additional support offered in the form of education
earch grants. Since the implementation of the Thailand 4.0 policy simultaneously
simultaneously providing
providing strategic
strategic support
support to relevant
to relevant MU-OU: CRC Collaborative Research Center
MU-OU: CRC Collaborative Research Center
companies. for Bioscience and Biotechnology,
in Thailand
companies. for Bioscience and Biotechnology,
the industry has also witnessed a spike in resources available for
h & development and research hubs. This is primarily the result of Faculty
Faculty of Science,
of Science, Mahidol
Mahidol University
University
Thailand Institute of Scientific and Technological
h within the Thailand 4.0 policy to encourage greater partnerships Thailand Institute of Scientific and Technological Research (TISTR)
Research (TISTR)
the public sector, private sector, government agencies and educational Supports innovations in science and technology
Supports innovations in science and technology National Biopharmaceutical Facility:
ons. through R&D. National Biopharmaceutical Facility:
through R&D. - Stated owned contract manufacturing facility
- Stated owned contract manufacturing facility
for promotion of biopharmaceuticals
for promotion of biopharmaceuticals
esearch Centers National Science and Technology Development Agency
National Science and Technology Development Agency (NSTDA)
- Collaboration
- Collaboration between
between BIOTECBIOTEC and KMUIT
and KMUIT
Investment
(NSTDA)
TheThe Agency
Agency supports
supports R&D
R&D activities
activities in in five
five core
core areas
areas
including:
foodfood
and and agriculture, energy and environment,
Incentives
Biochemical Engineering and Pilot Plant Research including: agriculture, energy and environment,
health and medicine, bioresources and the
health and medicine, bioresources and the community,community,
and Development Laboratory King Mongkut’s
andand manufacturing andand service sectors.
in EEC
University of Technology, Thonburi manufacturing service sectors.

The National
The NationalCenter
Center for GeneticEngineering
for Genetic Engineering andand
Biotechnology (BIOTEC)
Conducts policy
Biotechnology research, outreach programs and
(BIOTEC)
Marine Biotechnology Laboratory training as aligned with Thailand’s National Biotechnology
Conducts policy research, outreach programs and
Faculty of Science, Chulalongkorn University Policy
training asFramework.
aligned with Thailand’s National Biotechnology
Policy Framework.

Related
MU-OU: CRC Collaborative Research Center Petroleum Institute of Thailand (PTIT)
Petroleum Institute of Thailand (PTIT)
for Bioscience and Biotechnology, Promotes the
Promotes theThai
Thaipetroleum
petroleum market through R&D
market through R&D

Agencies
Faculty of Science, Mahidol University activities
activities that are related to the Thai
that are related to the Thai petrochemical
petrochemical
andand
petroleum
petroleumindustries.
industries.
National Biopharmaceutical Facility:
- Stated owned contract manufacturing facility ThailandCenter
Thailand Center of
of Excellence
Excellenceforfor
LifeLife
Sciences (TCELS)
Sciences

for promotion of biopharmaceuticals

Support
(TCELS) life sciences
Support R&D management
life sciences R&D management

- Collaboration between BIOTEC and KMUIT

andand commercializationininThailand
commercialization Thailandand
andOversea
Oversea and
and
empower
empower of manpower
of manpower in related
in related sector
sector

Source: BOI