Direct grants and public equity participation are quite limited in Thailand both in terms of variety and amount of support. This is because there is a long standing reliance on neoclassical economic thinking among Thai bureaucrats. The market menchanism is believed to be the best in allocating resources. Thus, government internvention should be limited. Firms should be able to help themselves. Government roles should be limited to providing adequate infrastructure and a favorable business environment with transparent and stable rules. Selective financing innovation policies aiming at helping particular sectors, cluster, types of firms, or activities are viewed as market distortions. That is why there are few grant and public equity participation schemes, and even fewer selective ones, in Thailand. On the other hand, science and technology policy making has largely been in the hands of scientists who believe in a ‘linear model of innovation.’ As a result most schemes focus on ‘R&D’ and neglect other aspects of capabilities development including production, engineering, design, problem solving, utilizing other firms’ knowledge and intellectual property right, branding and so on. Since innovation is narrowly viewed as ‘commercialization of R&D’, other types of innovation, which are not R&D-led, like new services, new business models, new applications and solution are very much ignored.