The report said: “Thailand, at 38th position, has fallen 2 places this year and 10 ranks since 2006. The assessment of public institutions continues to deteriorate (70th) after a drop of 30 places over the past four years, likely related to recent problems of social unrest and political instability in the country.

However, Thailand continues to benefit from its relatively large domestic and export markets (23rd), its excellent transport infrastructure (23rd), the efficiency of its labor market (24th), and a relatively well functioning goods market (ranked 41st).

In addition, the country’s business environment is relatively sophisticated with developed clusters (34th) and companies operating across the value chain. Going forward, in addition to urgently improving its institutional framework, the country needs to step up its efforts to improve its health and educational systems and encourage wider adoption of new technologies for productivity enhancements.

Such efforts will then buttress the country’s innovation potential, which will become increasingly important as it moves toward the most advanced stage of economic development.”