Innovation index and the innovative capacity of nations

Abstract This study is concerned with the development of the innovation capability index to assess innovation efficiency in an industrial innovation system. This paper presents the research results on charting the innovation index of Thailand and discusses the strategies to improve the national innovative capability. Based on the studies on competitiveness factors done by International Institute for Management Development (IMD) and World Economic Forum (WEF), the research analyses five levels of innovation capability: (1) organisation innovation capability, (2) process innovation capability, (3) service innovation capability, (4) product innovation capability, and (5) marketing innovation capability to provide overall information of the national innovation capability index. The study on innovation capability in 2007 reveals that Thailand has the innovation capability index of 2.30 (out of four level system) or equals to 57.50%. The study provides ambitious initiatives and strategic implications to promote innovation of the economy.