## 5 Discussion and Conclusions
### Policy Implications
#### 5.2.1 Accelerating Industry Clusters and Innovation Districts  
The sectoral and spatial insights from this research highlight the need for policies that specifically address these issues. The first key implication centres on accelerating economic clusters to boost household income throughout Thailand while concurrently addressing the spatial inequality identified in the study. The findings entail the crucial role of industry clusters in regional development, a strategy globally recognised for promoting economic growth ([PERSON] et al., 2006).  
In Thailand, economic clusters, especially in advanced manufacturing within affluent regions like the Eastern area, have been a focus for decades ([PERSON], 2016). However, the existing top-down approach often misses the distinctions of local realities ([PERSON] et al., 2023). This study's insights, particularly concerning five key sectors--agriculture, real estate, professional services, support services, and leisure--suggest a more refined approach to implementing cluster policies.  
Firstly, the sectors of professional, scientific, and technical services, along with administrative and support services, can be simultaneously regarded as sectors aimed at driving 'business capacity' in a province and are strongly associated with average household income. This research found that the improvement of business capacity is related to increased income. These findings echo the calls within Thailand for improvements in business processes, strategic planning, technical expertise, and coordination to bolster the functioning of industry clusters ([PERSON] and [PERSON], 2017; [PERSON], 2016; [PERSON] et al., 2023; [PERSON], 2019).  
This leads to the concept of \"innovation districts\", a variant of small-scale economic clusters, which can significantly enhance the business capacity of enterprises and other sectors within a province. Innovation districts, leveraging the presence of universities and colleges as anchors, can facilitate public, private, and community collaborations. The integration of these educational institutions is pivotal for enhancing clusters in Thailand ([PERSON] et al., 2021; [PERSON] et al., 2019). The existing literature also links the role of higher education institutions to regional income growth ([PERSON] et al., 2018; [PERSON] et al., 2010; [PERSON] and [PERSON], 2013; [PERSON] et al., 2021). The innovation districts not only drive innovation and business capacity but also contribute to the vibrancy of real estate and leisure sectors ([PERSON] and [PERSON], 2022).  
Innovation districts in Thailand should aim to break away from a one-size-fits-all, prescriptive nationwide policy. Different regions may require distinct types of innovation districts, tailored to their unique economic landscapes and resource availability. The effectiveness of small-scale, place-based development has been recognised as crucial for regional progress in Thailand ([PERSON] and [PERSON], 2016; [PERSON], 2011). These districts would provide a conducive environment for nurturing new businesses, fostering research and development, encouraging collaboration across various sectors and fostering specialisation which is important for regional growth ([PERSON] et al., 2012). In this context, a strategic focus on high-value agriculture as a spearhead project in innovation districts nationwide could be highly beneficial. Such a focus would leverage Thailand's agricultural strengths, driving innovation in a sector that directly affects a large portion of the population. By integrating advanced technologies and practices into agriculture, these districts could significantly enhance household income, particularly in rural areas.