needs to be developed In Thailand and Incorporated Into the consideration for funding of various Institutions. 22S In addition, the linkage between R&D projects/universities and the production system Is not good. The reason Is that very smal I portion of R&D Is performed In private sector. Most Industry or private organizations have a definite role and do not have close coopratlon with the government sector In producing their outputs. The Industry which perform R&D will do only for their own Interest and benefits. And for those which are not Interested In performing R&D normally prefer buying technology from abroad In unpackaged forms. One major problem still to be tackled Is the gap between university, where most of S&T talent lies, and the private sector where much of this Is' needed. An ·encouraging trend Is developing, however, whereby universities actively seek contracts for S&T work from the private sector. Because the major universities are In the civil service, a proper balance still has to be found between the traditional and the new role. Besides, the red tape In contracting and transferring of R&D results to the Industrial production system Is very slow and boring. The following measures and operation plans are formulated to Increase the country's S&T research and development capabl llty. 1. Increase and Improve the country's research and development efforts by Increasing the country's Rand 0 budget to 0.5 percent of GNP. To accomplish this, Incentives wll I be provided to the private sector to spend 5 percent of net profits on R and 0 work by using the existing government or private research Institutes. ·2. In conducting Rand 0 work, It will be necessary to find the right balance between basic research and applied research.· R and 0 work must consist of a combination end coordination between 