This study is concerned with the development of a consistency check for structural equation modeling on both the direct and indirect influences on research and development (R&D) capabilities that affect the competitiveness of Thai automotive parts industry enterprises. Thailand’s automotive sector in 2013 was the 3rd largest sector of the economy contributing 12% of GDP. It however needs to improve its capability, skills and infrastructure to retain its competitive advantage. This advantage is important in developing countries and even more so to Thailand with intense competition from both AEC member states and outside the region. Therefore, it is crucial that organizations focus on innovative research and development capabilities in both the public and private sectors which need to collaborate, support, fund, and incentivize players, both domestic and foreign to enhance Thailand’s innovative capacity and fill in gaps in its cluster environment going forward. Dubbed as Detroit of Asia, Thailand’s recognized success as a global automotive hub is a classic case of a well-executed industrial plan but it must not rest on its tribute and continue moving forward with innovation combined with R&D capability.