Abstract for: Dynamics of Technology Spillover through Foreign Direct Investment in Thailand under R&D Consortia Policy

This paper studies the effect of R&D consortia policy and the consequences of the policy implementation process on technology spillover through Foreign Direct Investment (FDI) in Thailand using a system dynamics method. The results show that the R&D consortia policy increases the level of technology spillover and improves the economy of Thailand by boosting the productivity and GDP per capita of Thailand. The R&D consortia policy also amplifies the level of FDI which adds up to the productivity growth. When considering the policy implementation process, shortening the implementation time significantly increases the benefits in the short run but in the long run the additional benefits from shortening the implementation duration diminished. The FDI signaling effect reduces the benefits of the policy. However, when accounting for the signaling effect, Thailand is still better off if the R&D consortia policy is implemented.