After dropping three places last year, Thailand has shown positive momentum this year rising one spot to 52nd globally, according to StartupBlink's Global Startup Ecosystem Index 2023.
StartupBlink is a global startup map and research centre offering insights into trends affecting the global startup ecosystem. Its research covers more than 1,000 cities and 100 countries, across 11 industries and dozens of sub industries.
For three consecutive years, Thailand was ranked the 11th best ecosystem in Asia-Pacific and the fourth best in Southeast Asia, according to the report.
Bangkok represents the country's main startup ecosystem as it is the only city in the country to make the global top 100. This year, Bangkok gained 25 spots globally to rank 74th. It is also the third best ecosystem in Southeast Asia.
There are three other Thai provinces within the top 1,000 -- Chiang Mai (ranked 591st), Phuket (640th) and Pattaya (849th).
Phuket is no longer among the top 600 cities as it fell 93 places in 2023, while Chiang Mai regained its position as the second best startup ecosystem in Thailand, replacing Phuket.
According to StartupBlink, over the last 40 years, Thailand has taken a leap forward into a more economically developed country through multiple reforms and social innovations.
Mainly seen as a tourist destination, the Covid-19 pandemic caused the public sector to prioritise startup ecosystem development as an important step in securing future economic growth.
Those efforts are not yet focused or determined enough compared to Singapore or Malaysia, but they are a good start towards ensuring the Thai ecosystem can fulfill its potential, the report says.
Thailand attracts not only tourists, but also hordes of digital nomads moving to Chiang Mai and Bangkok.
With creative policies, the public sector could tap into this immense base. The goal should be to connect local and foreign entrepreneurs in the hope that viable projects would follow, increasing linkages to Thailand and local talent. This is not yet happening at a satisfactory rate.
Though a linkage between foreign and local talent is still lacking, the public sector is innovative in terms of visa programmes and other measure to allow expats to stay long term.
According to the report, the value of funding and the number of venture capital deals in Thailand in 2022 was over US$1.25 billion, totalling 38 deals, compared to over $548 million with 41 deals in 2021, and over $437 million with 26 deals in 2020.
As in other Asian countries, Thailand would benefit from a cultural shift towards making the young population less risk averse and more entrepreneurial.
The country has had several unicorns in previous years, such as Line Man Wongnai, Flash Express and Ascend Money, all passing the $1 billion valuation mark. Considering Thailand's robust economy, the country could produce more unicorns in the coming years, says the report.
According to Pun-Arj Chiratana, executive director of the National Innovation Agency, Thailand is Asean's second-largest economy and the friendliest business location. Since 2016, startup development has been a significant strategic policy for economic reform in Thailand.
He added that the vibrant business climate has been strengthened alongside a series of new incentives for startups. The focus is not only on Bangkok but also on other innovation districts across the country to make Thailand an attractive market for startups, innovative entrepreneurs and investors.
Mr Pun-Arj said that the latest StartupBlink index reveals that Thailand's sustained efforts are transforming the ecosystem, the country and its cities towards a thriving startup ecosystem.
