Competitiveness, FDI and Technological Activity in East Asia
Show Less

Competitiveness, FDI and Technological Activity in East Asia

Edited by Sanjaya Lall and Shujiro Urata

This book addresses this imbalance with new country studies on the interaction between foreign direct investment (FDI) and technological activity in building export competitiveness. The book covers China, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand, highlighting different strategic approaches to building capabilities in industrial enterprises. The book also includes a general overview and studies of Japanese multinationals overseas.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 7: Technology acquisition and development in Taiwan

Bee-Yan Aw


1 Bee-Yan Aw Like many developing countries, the earliest and most common sources of new technology for Taiwan were foreign direct investment (FDI), joint ventures, licensing agreements and, more indirectly, technology embodied in imports of new capital goods. During the period from 1960 to the mid1970s, the process of acquiring and using foreign technology was facilitated by the availability of an educated labour force as well as the emphasis on the production of goods using relatively simple technologies. However, over the past two decades, with the rapid growth of real wages, the focus has shifted to new industries characterized by more capital- and technologyintensive processes. This development implies a significant increase in the demand for improved or new local technological capabilities among firms. In the quest to stimulate private firms to increase R&D and training activities, various government incentives were enacted in 1983 and 1984 to enhance the profitability of such activities and to reduce the risk to investors. The Ten Year Science and Technology Development Plan (1986–95) called for R&D expenditures to rise from 1.04 per cent of GNP in 1986 to 2 per cent by 1995. It also called for an increase in the share of the private sector in total R&D from 40 per cent to 60 per cent in this period (Dahlman and Sananikone, 1990; Hou and San, 1990). In Section 1 we document the initial conditions of Taiwan’s economic development and the role of government policy in the early...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.