Dr. Huang Wen-hsiung Vice Chairman National Science Council Executive Yuan

Taiwan has been able to achieve sustainable economic development in spite of a shortage of natural resources and other unfavorable conditions. This success should be attributed to the initiative and hard work of the people, the adventurous spirit of local entrepreneurs, and the pragmatic and forward-looking development strategies formulated by the government at each stage of national development. Taiwan is now an important global production center for information technology and plastic products. Indeed, it leads the world in the areas of professional OEM chip foundries, semiconductor design, and the production of TFT-LCDs and LEDs.

The tremendous changes in the global competitive environment at the turn of the century have caused a shift in regional competitiveness. Globalization of the world economy has also brought changes to the international division of labor, speeding up the practice of global logistics management and distribution of industry. As the knowledge-based economic system builds momentum, new materials and new technologies come into use on a daily basis. Future technological breakthroughs will thoroughly transform the current competitive landscape. To enhance the advantages Taiwan’s industries already enjoy and encourage further innovation, the government has formulated the following strategies for the development of major industries at the present phase:

I. The government will continue its efforts to create an investment environment with zero obstacles and improve basic public utilities such as water, electricity, and telecommunications. Laws and regulations will be revised. The entire range of basic facilities for industrial development will be provided, and industrial parks will be developed. The government will also effectively promote domestic investment and actively attract overseas investment to Taiwan.

II. Taiwan will improve its technological infrastructure, cultivate human capital, and increase capacity for industrial research and innovation. The goal is to develop Taiwan into a global center for research and innovation. The government is putting special emphasis on developing widely applicable industrial technologies, establishing a technology database, setting up research and testing facilities, and building a platform on which industry, government, and research institutions can coordinate their efforts. Projects already in progress include technology research for key industries (such as biotechnology, nanotechnology, system-on-chip technology, and telecommunications technology) and the establishment of research and development centers (for genome research, software design, wireless communications, telecommunications, and nanotechnology applications). Through the application of Taiwan's powerful manufacturing base, together with increased research and innovation and the nurturing of emerging high-tech industries, it is hoped that Taiwan will develop into an innovation headquarters for domestic businesses and eventually a regional R&D center for multinational corporations.

III. The promotion of development in key industries will be increased. A. The government will set up industry promotion offices and establish schools to train professionals. The government will also actively promote its "two trillion, twin stars" program. The goal of this program is to raise the value of production in the semiconductor and image display industries to NT$1 trillion (US$28.5 billion) each, and to build the digital content and biotechnology sectors into star industries, all by 2006. B. The government will help develop such emerging service sectors as research and development, the application of information, logistics, and healthcare. The development of environmentally friendly "green" industries will also be actively pursued.

IV.

        Financial rewards will be offered to businesses that invest in

        building global brands and establishing international distribution channels. This will help Taiwan secure a place among higher value-added producers in the global supply chain.

V. The government will foster a high-quality workforce to solve the imbalance in the labor supply resulting from adjustments in Taiwan’s industrial structure.

In keeping with the global trend towards technological and industrial development, the government will forge ahead with the implementation of the industrial development strategies discussed above. Taiwan will be transformed from a “production-based Taiwan” to a “knowledge-based Taiwan.” Working together to create a new economic miracle, the government and private sector will hasten the development of Taiwan into an environmentally friendly and technologically advanced “green silicon island."

Last Update: October 3, 2002