The government strategy for the upgrading of industrial technology in Taiwan

Abstract

The Taiwanese government supports R&D activities for the advancement of domestic industrial technology. Every year, the government R&D budget subsidizes approximately a quarter of the R&D expenditure for industrial technology. In order to enhance technological competitiveness, the Ministry of Economic Affairs (MOEA), which is responsible for promoting the competitiveness of domestic industry, evaluates and provides strategies in its efforts to anticipate the current and future needs of the industry. In the past, the method of government support has been to entrust non-profit research institutes to perform R&D projects, and then distribute the results to industry for commercialization. Since 1996, as domestic industrial technology has advanced, MOEA has induced the private sector to participate more in R&D projects, both in terms of performance and funding. Because of this, industrial technology development has since shifted to the private sector. The government now only takes a supporting role. This paper has three main areas of interest; (1) a description of major industrial technology development mechanisms over the past two decades, (2) an examination of primary industrial technology development strategy, (3) a discussion of the direction of industrial technology development in Taiwan and the role of the government in policy formation.