Thailand reviews innovation scheme over six procurement concerns

The Thai Innovation List, established in January 2016, aims to support domestically developed products and services by facilitating their access to government procurement. Its objectives include fostering research and development, stimulating demand for Thai innovations, and leveraging public purchasing power. Thailand's Cabinet has now paused new listings and ordered a comprehensive review of the program's product eligibility, pricing, registration criteria, and benefits.

This decision comes despite a substantial increase in the value of products sold through the program, which grew from THB407.3 million in fiscal 2017 to THB9.98 billion in fiscal 2024. However, the proportion of listed innovations actually receiving government orders declined from 37.04% to 24.11% over the same period. This suggests that while overall government spending on innovative products expanded, purchasing opportunities became concentrated among a smaller subset of registered innovations, raising questions about the program's effectiveness in broadly supporting the innovation sector.

The Budget Bureau identified six core issues, including the concentration of procurement spending on limited products, overlaps with existing government pricing frameworks, and difficulties for agencies in assessing actual costs for specialized innovative products. Critically, recommendations from the National Anti-Corruption Commission and observations by parliamentary committees have highlighted risks of monopolistic practices and preferential treatment for certain suppliers. These concerns, alongside inadequate monitoring mechanisms, prompted the Cabinet's review to address the program's effectiveness, transparency, and competitiveness.