Taiwanese National Competitiveness: An Exploratory Study of the Aviation Industry and the Taoyuan Aerotropolis Project

Abstract

In the fast-paced world of business, the nations of the world compete to be the most capable and attractive location in order to bring in business investment and reap economic gains. This study examines the aviation and air transport industries in Taiwan to explore the determinants of national competitiveness, building on theories proposed by Michael Porter, the World Economic Forum (WEF), and the International Institute for Management Development (IMD). By gathering expert interviews, this research draws conclusions about the way aviation and air transport contribute to national competitiveness and economic prosperity. It attempts to answer whether these are industries that should be supported, and if so, why and how they should be developed further. The Taoyuan airport expansion and aerotropolis project is a topic of special concern as it represents a massive national initiative in Taiwan, following a recent world trend of aerotropolis development. Building on Porter’s original “diamond framework” and the theoretical ideas of the WEF and IMD, evidence from the interviews has resulted in a theoretical framework that highlights the central role of the government in exercising influence over the determinants of national competitiveness, especially for the aviation and air transport industries. The framework also attempts to depict the unique political dynamics of Taiwan and their impact as well.