The impacts of globalization have pressured SMEs to greater demands. Particularly in the manufacturing sector SMEs are facing a pressure to increase R&D, innovation and quality. Innovation relies on bringing together different types of research and utilizing this knowledge to design new products, thus, innovation increasingly depends on links between scientific research and industrial R&D and without an R&D focus, companies risk falling behind competitors in innovative new products. The overall spending on R&D in Thailand is still low at 0.26% of total expenses. Thus, there is a need to increase government subsidies in terms of R&D support in order to gain competitive advantage over foreign competitors . Furthermore, there are many SMEs managers in Thailand that lack in education, knowledge and capability to drive advanced development in terms of innovation which consequently lead to technological weakness in Thai companies.