Trends and Acquisition Strategies for Knowledge Intensity: The Comparison between Korean and Taiwanese Technology Industry

Abstract

This article examines the development of knowledge intensity in Korea and Taiwan with particular reference to their technology industry. The experiences of Korea and Taiwan are described in turn, showing how each of their national policies and approaches has shaped their indigenous knowledge intensity that leads to the emergence of unique characteristics in both countries. Given that foreign direct investment and various trade interactions are potential facilitators of knowledge diffusion, the economic connections between the U.S./Japan and Korea/Taiwan are likely to have an impact on the patterns of knowledge diffusion. From our discussion using feedback loops of system dynamics approach, a number of similarities and contrasts are identified between Korean and Taiwanese technological knowledge intensive industries. The potential for the vigorous and continued development of this important industrial sector in each country is also assessed on the basis of the country's current technological capabilities.