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This paper reviews the nature of innovation, and seeks to assess the current status of Thailand as an innovative economy, to identify what innovation strategies are available and are being implemented, and to examine in some detail the automotive sector as a case in point. Thailand is gaining recognition as the Detroit of Southeast Asia. Both Japanese and American automobile manufacturers are investing heavily in Thailand, bringing with them the opportunity for local companies to become part of the supply chain. The Thai government has the opportunity to assist these Thai companies to become innovative, with some expectation of innovation-related spin-off effects for other manufacturing sectors. This paper describes some of the Thai government programs in support of innovation, and assesses the governments communication strategy in making Thai companies aware of its programs and getting Thai companies to buy into its programs.