consists of development practices under 3 frameworks: (1) state Policies (2) National Economic and Social Development Plan and (3) Stimulus package 2 under stronger Thai 2012 project

• 1.1 State Policies

  1.1.1 State policies on development of the creative industries have become apparent since 2002. Various independent agencies have been set up to develop knowledge and carry out activities related to creative economy. Such agencies are, for example, Office of Knowledge Management and Development (OKMD), Thailand Creative and Design Center (TCDC), National Science Museum, Office of Tourism Development andSoftware Industry Promotion Agency (SIPA). They are built as a foundation for long-term development for each of the creative industries. However, the policies and activities of these agencies lack continuity and integration.

  1.1.2 The government led by Abhisit Vejjajiva has very clear policies on the creative economy development. The current administration has realized the importance of the creative economy development since it took the office. In the Prime Minister’s policy statement presented to the parliament on 29 December 2008, item 4.2.3.1 states that “… to extend the service base of the nation’s manufacturing structure and combine the service, industrial and agricultural sectors into product groups, for example, health, food and tourism. This includes creative products and services based on Thai culture and wisdom in connection with modern technology…” The policies result in initiations to realize the potentiality of the creative industries and services and adding on ideas to existing projects in a more controlled and focused fashion.

• 1.2 Creative Economy Development Approaches under the National Economic and Social Development Plan

  1.2.1 Throughout the Eighth to the current (the Tenth) National Economic and Social Development Plans, attempts have been made to support the value creation of goods and services based on knowledge and innovation to continuously increase gross output of goods and services. In 2007, a study was conducted and initiatives were executed to create economic value from cultural capital, utilizing the strengths and advantages of the culture through economic value creation. For the economic sector, the Tenth Development Plan focuses on adjusting the manufacturing structure, aiming at value creation of goods and services and supporting connection between different fields of manufacturing.

  1.1.2 During the preparation of the Eleventh Development Plan, Thailand is inevitably suffering from the global financial crisis. Moreover, the current economic structure of Thailand still depends largely on external factors. Therefore, it is necessary to accelerate the restructuring of the national economy. This can be carried out through add-ons to value creation of cultural capital which Thailand abundantly has. In addition, creativity, technology and modern knowledge can be used to manufacture new products and services. It is only fitting that the development of “the creative economy” is presented as a driving factor and as an agenda in the annual meeting of National Economic and Social Development Board (NESDB) held on 10 July 2009. The meeting focuses on pushing the creative economy as a new engine for economic growth in the state where the economy is driven by traditional factors such as exports of industrial goods and sluggish investment as a result of the financial crisis. It is also a major issue in the Eleventh Development Plan.

• 1.3 Enhancing Potentiality of the Creative Economy under the Economic Stimulus Plan

  1.3.1 The government embarked on an intensive stimulus plan in the first 6-9 months of 2009 in an attempt to reinvigorate the economy. It is followed by the second stimulus package (SP2) which aims to generate jobs and revenue through state investments in projects that will give the competitive edge to the country in the future. The package also creates investment opportunities for the private sector. The enhancement of the potentiality of the creative economy is also included in the SP2. 

  1.3.2 The creative economy enhancement plan covers 6 aspects: (1) cultural heritage and wisdom, and biological diversity (2) arts and culture uniqueness (3) crafts (4) media, entertainment and software (5) creative design and development (6) the execution and promotion of the creative economy development. The cabinet approved a budget for 45 projects under the plan. Subsequently, some of the projects have been merged, resulting in 39 projects, in total, with a budget of 20,134.10 million baht, under supervision of 7 ministries: Ministry of Science and Technology, Ministry of Industry, Ministry of Public health, Office the Prime Minister, Ministry of Natural Resources and Environment, Ministry of Culture and Ministry of Information and Communication Technology.

  1.3.3 The cabinet passed a resolution on 6 May 2009 to approve the following projects:
  (1) Project Type 1 has high level of readiness to operate. Purchasing, hiring and reimbursement can be done within the fiscal year 2010. This includes 20 projects ready for operation within 2009. Budget approved for such projects toals 3,817.70 million baht (See details in Appendix) and (2) Project Type 2 includes 14 projects with lower level of readiness and cannot be operated within the fiscal year 2010. Budget approved amounts to 13,767.60 million baht. Agencies responsible for this type of projects must review the details and operation plans before submitting them to the selection panel under SP2 for consideration. Agencies can also propose additional projects to be selected under SP2 within determined timeframe.

At present, there are several state agencies and public organizations that realize the importance and play a part in bolstering the creative economy, which is operated at both policy and operational levels, and providing the infrastructure for the creative economy development. However, these agencies are working separately due to lack of common vision. Related agencies in different fields are as follows:

• 2.1 Policy agency

  namely, Office of the National Economic and Social Development Board (NESDB), provides support in terms of policies and the push of the creative economy concept. Ministries that are directly related to the projects, such as Ministry of Information and Communication Technology and Ministry of Culture, are assigned to be in charge of cooperation among state agencies. The government has set up the National Competitiveness Committee (NCC) to oversee exigent missions that lack responsible agencies, especially the development of the creative economy. A subcommittee on the creative economy has been formed to supervise and formulate the strategies and roadmaps to the development of the creative economy in Thailand that can be practiced effectively, and to propel the creative economy through out the value chain. Since the creative economy is a significant policy that the government put a serious attempt to push forward, the National Intellectual Property Policy Committee, chaired by the Prime Minister, also approved the formation of a subcommittee on the creative economy for commercial purposes, chaired by the Deputy Commerce Minister (Mr. Alongkorn Ponlaboot). The subcommittee is responsible for formulation of creative economy strategies for commercial purposes. In addition, it is to promote and support the basic structure of the creative economy in order to enhance the national competitiveness and create value for the creative industries. The subcommittee will also coordinate the implementation of projects, plans and activities between the public and private agencies in an attempt to enhance the potentiality of the creative economy in order to achieve revenue generation and sustainable growth.

• 2.2 Intellectual Property Agency

  namely, Department of Intellectual Property, Ministry of Commerce, is a secretary to the National Intellectual Property Policy Committee, chaired by the Prime Minister, and the subcommittee on the creative economy for commercial purposes. The Department of the Intellectual Property is the main agency to coordinate projects jointly implemented with the private units with the aim to realize the creative economy policies. This includes projects under the Strengthening Thailand Operation 2012 which are being considered by the Bureau of the Budget. Examples of such projects are the Ministry of Commerce’s creation of intellectual property for commercial purposes; the generation of awareness and understanding, and exploitation of the creative economy; the development of curriculum on the creative economy; and the improvement of the infrastructure for legal designing software.

  The mission of the Intellectual Property Center under the Department of Intellectual Property is to promote and support the making, exploitation and value creation for commercial purposes of intellectual property, and to initiate the intellectual property culture through conscious-stimulating activities to raise awareness of the significance of intellectual property and the respect for others’ property. Moreover, the Department of Intellectual Property has an idea to establish an “institution of creativity” as a center for knowledge, add-on ideas and skills as well as providing advice on management; and an “intellectual property capital market” to mobilize funding to provide infrastructure for business solution for the private sector in order to sustainably nurture the growth of the creative economy.

• 2.3 Knowledge Agency

  is responsible for developing and creating the knowledge to support the development of the nation’s creative economy system, and to pass on the knowledge to the public in the form of various activities, such as the founding of research and study center, the dissemination of research studies, exhibitions, lectures and workshops. Responsible knowledge agencies include TCDC, OKMD, TK Park, SIPA and other educational institutions

• 2.4 Financial Agency

  includes financial institutions or commercial banks, the venture capital fund for enhancing competitiveness of Thai business managed by Office of Small and Medium Enterprises Promotion (OSMEP), the SME venture capital fund and the Board of Investment of Thailand (BOI).

• 2.5 Research and Development

  Agency includes National Innovation Agency, and National Science and Technology Development Agency, for example.

• 2.6 Controlling Agency

  includes Food and Drug Administration, National Bureau of Agricultural Commodity and Food Standards, National Science and Technology Development Agency, Thai Industrial Standards Institute and Office of Tourism Development, for example.

• 2.7 Marketing Agency

  includes Ministry of Foreign Affairs, Department of Export Promotion, Department of Business Development, Tourism Authority of Thailand and Tourism Council of Thailand.

Therefore, for the creative economy to be an efficient fuel for economic growth in the long run, an agency or a mechanism should be set up to coordinate, connect and integrate at both strategy/policy and operational levels.

In conclusion, although the government is currently placing importance on the development of the creative economy, so do the public and private agencies who are driving the development in different fields assigned, a holistic methodology of formulating strategic issues and approaches to development of the creative economy is needed to guide the process of driving the creative economy for all involved agencies. The formulation of strategic issues and approaches to promoting the creative economy in all angles, including the creative community and creative class, is a critical tool for Thailand to become the country that focuses on creative development in a corresponding environment.

Strategic issues and approaches to the creative economy development are resulted from analyzing weaknesses, strengths, opportunities and restrictions to identify strategic advantages and opportunities as well as problems and obstacles of Thailand’s creative economy development . It is also an outcome of workshops with public and private agencies in various occasions. The following are proposed strategic issues and approaches to the nation’s creative economy development.

• 3.1 Strategic Issues and Development Approaches at Macro Level

  3.1.1 To develop the creative economy as well as knowledge-based economy
  This is because the development of the creative economy in a wide range relies on knowledge and innovation to create value for existing cultural and wisdom and to ensure that creativity takes place in the manufacturing sector throughout the manufacturing chain. Therefore, it is necessary to focus on creating knowledge and promoting research and development as well as human resource development in the official educational system and beyond.

  3.1.2 To shape policies on the creative economy and integrate the operation of different agencies
  This is because the creative economy development has a broad framework which involves a large number of public and private sectors. For the development to take place at an operational level, it is vital to set up a main responsible agency and to establish clear frameworks and mechanisms used to execute the strategies in order to guide the related agencies when framing integrated plans to drive the creative economy in Thailand. This will ensure material operational results. It is, therefore, necessary to formulate practices based on a master plan of the development of the creative economy and a roadmap to guide the operation of related agencies on an integration basis.

  3.1.3 Strategic Issues and Development Approaches of Infrastructure and Environment
  The focus is on the telecommunications infrastructure, promotion of investment in research and development, fund procurement, educational development on a systematic basis that corresponds with the market demand, improvement of modern marketing to remain competitive in the changing global environment. Significant issues are as follows:

• 3.2 Strategic Issues and Development Approaches of Infrastructure and Environment

  The focus is on the telecommunications infrastructure, promotion of investment in research and development, fund procurement, educational development on a systematic basis that corresponds with the market demand, improvement of modern marketing to remain competitive in the changing global environment. Significant issues are as follows:

  3.2.1 To develop environmental factors that stimulate the private sector to invest in manufacturing creative goods
  by issuing stimulus measures to attract overseas companies to co-invest with the private sector and the Thai community in developing creative goods based on innovation and modern knowledge. It is also important to accelerate the enhancement of Intellectual property units so that they have capacity to appraise creative intellectual property, and to push forward with the law enforcement on intellectual property to protect it from being violated. A fund should be set up to financially support creative entrepreneurs and businesses. The government should also improve the credit system as well as credit insurance of financial institutions so that they cover creative businesses that have intellectual property as main manufacturing factors.

  3.2.2 To enhance the database, communication and transportation systems
  to support the creative manufacturing sector as well as promote public learning centers and develop public spaces in different formats in order to create arenas for thinkers and creative class. The government should also promote applications of such spaces that are suitable for local community and cultural contexts

  3.2.3 To value intellectual property resulting from creativity
  by passing the laws and regulations that protect intellectual property and establishing effective enforcement practices. Initiatives to protect creative entrepreneurs with existing laws and procedures should be launched. Moreover, the government should focus on exploitation of intellectual property or ideas in order to access to funding sources as well as review legal issues and obstacles in order to amend the laws and regulations to facilitate the development.

  3.2.4 To research and develop in depth in the fields of creative economy and cultural capital
  through 5 types of study: (1) cultural heritage and wisdom, and biological diversity (2) arts and culture uniqueness (3) crafts (4) media, entertainment and software (5) creative design and development in order to create economic value and to take the products and services to both domestic and overseas markets. In addition, in order to conduct the in-depth studies, it is necessary to build a database and enforce an effective data collection system. This can be done by setting clear standards and scopes of the creative industries and establishing accepted and reliable data collection methods to facilitate evaluation, monitoring and drafting up development policies.

  3.2.5 To build and develop learning spaces outside the classroom and creative spaces, and to ultimately make the creative city
  in order to generate inspiration and to provide expression arenas and centers for exchanging ideas for thinkers, entrepreneurs and involved parties.

• 3.3 Strategic Issues and Development Approaches of Entrepreneurs and Creative Class

  3.3.1 To drive and create opportunities for entrepreneurs
  The enhancement of competitiveness by generating creative entrepreneurs is a pivotal point for the development of the creative economy. Therefore, it is necessary for entrepreneurs to be trained in order to improve skills and knowledge in terms of making creative goods and services that are outstanding and can be developed into new products with idea and innovation to respond to market demand and keep up with the changing trend of the global society, for example, the rise of an aging society, the change in consumers’ tastes and behaviors with increasing demand for creative goods and services. In this regard, Thai entrepreneurs must receive training to enhance their potential to exploit these new opportunities by gaining advantage from the diverse and unique culture of Thailand and its characteristics in order to build the creative economy and creative society so that Thailand can compete with other countries in the global arena.

  3.3.2 To develop creative human resources
  In order to develop creative human resources to respond to the public and economic demand, it is necessary to set up a system that coordinates between educational institutes and the manufacturing sector in order to adjust the training direction to respond to the demand for personnel in the fields that experience shortage of staff. Examples of adjustment include allowing the private sector to participate in drafting curriculums. If Thailand lacks human resources with skills in developing modern and local wisdom to be exploited for commercial purposes, it will be difficult to propel the manufacturing of creative goods and services in the agricultural and industrial sectors.

• 3.4 Strategic Issues and Development Approaches of Institutions and Evaluation and Monitoring

  3.4.1 To develop institutions and integrate roles between involved institution
  to build a network that supports the creative economy development through promoting institutions sponsoring the private sector in manufacturing a large amount of creative products that satisfies the demand. In addition, the main agency that is responsible for the nation’s creative economy development should be founded. Its duties include formulating national policies and strategies, coordinating and integrating work between ministries and supporting agencies that play a direct role in propelling the creative economy development. The agency also has a responsibility to monitor and evaluate the overall progress of the development.

  3.4.2 To set up the systematic and consistent process of monitoring and evaluating
  In order to do so, it requires tracking tools, measurement index for the creative potential in each field and a systematic database that is up to date and shows consistency through out the entire data. This will lead to adjustment of plans and strategies in developing the creative economy so that they correspond to the current circumstances, which will bring about concrete operational result.

Referenced to (1) The Preliminary Report on Creative Economy prepared by NESDB and TCDC
(2) Materials accompanying the 2009 annual meeting of NESDB on Creative Economy: Thailand’s Economic Option for Thailand