Science and Technology Based Regional Entrepreneurship
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Science and Technology Based Regional Entrepreneurship

Global Experience in Policy and Program Development

Edited by Sarfraz A. Mian

Providing a global survey of public policies and programs for building national and regional ecosystems of science and technology based entrepreneurial development, this book offers a unique analysis of the advances, over the last several decades and in light of the experiential knowledge gained in various parts of the world, in the understanding of innovation systems in the pursuit of developing these economies. Presenting nineteen case studies of diverse developed and emerging economy nations and their regions, more than thirty expert authors describe an array of policy and program mechanisms that have been implemented over the years.
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Chapter 13: Taiwan’s Industrial Innovation Policy and Programs to Support Research and Technology Based Entrepreneurship

Jiann-Chyuan Wang and Daw Ma


Jiann-Chyuan Wang and Daw Ma INTRODUCTION During the past ten years, Taiwan has been successfully transformed from an economy dominated by labor-intensive industries to an economy dominated by capital- and skill-intensive technology industries (Lee and Wang, 2003). This is evidenced by the fact that the share of exports in high-tech industries accounts for 42.30 percent in 2006, second only to Singapore and Ireland. Moreover, Taiwan’s share of R&D/GDP was 2.62 percent in 2007, comparable to most developed countries. And in terms of production value, Taiwan is the second largest country in the computer industry and the fourth largest country in the semiconductor industry. In 2008, Taiwan was ranked number two worldwide in IT industrial competitiveness by the Economist Intelligence Unit (EIU) (Commercial Times, 2008). Bearing in mind that Taiwan’s economy is largely based on small and medium-sized enterprises (SMEs), and given the constraints that this situation imposes in terms of manpower, capital and technology resources, how has Taiwan succeeded in becoming such an important player in the global information and communications technology (ICT) industry? Previous research in this area has emphasized the role played by government intervention (while maintaining a market-friendly business environment) to support R&D and innovation in industry. In recent years, Canada, Israel, Singapore and South Korea have all redesigned their innovation policies to provide a greater role for direct government intervention to stimulate R&D and innovation (National Science Council, 2008; Trajtenberg, 2001; Industry Department of Canada, 2002; Levebvre et al., 2001; Wang and Lan,...

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