Taiwan's Industrial Technology Innovation

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Taiwans Industrial Technology Innovation
Department of Industrial Technology Ministry of
Economic Affairs, R.O.C.
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Contents
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Evolution of Taiwans Economic Development

• Shift of Focus in Value Chain

Novel Product/ System/ Service
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Economic Transition of Taiwan

• Transition of Industrial Structure

• Transition of Main Export Items

ICT and related components
Mental products/ Bicycle Electronic parts/ IT
products
Semiconductor and TFT LCD
Textile/ Toys/ Umbrella
1970
1980
1990
2000

• Transition of Growth Driving Force

Innovation - An enabling growth engine
1996-2000
2002-2005
Change of contribution to economic growth
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Why Taiwan Matters

• Taiwan is an important player in global economy

Taiwan - Formosa
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Taiwans World Leading Products (2006)
Why Taiwan Matters

• Taiwan as the Worlds Leading High-tech Products
  Supplier

Industry Production Value 2006 / Global Rank
Share
IC Foundry, IC Package Testing, Mask ROM, Large
Sized (gt10) TFT LCD, TN/STN LCD, ED Cu, CD-R,
CD-RW, DVD-R, DVD-RW, ABS, Electric Scooter
Wheelchair
IC Design, DRAM, WLAN, SOHO Router, OLED, Glass
Fiber, Motherboard, IC Substrate, TPE, Polyester
Filament
Small Sized TFT LCD, PCB, NB PC, PU Leather, PTA,
Nylon Fiber
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• The open innovation system and the dynamics of
  Taiwans IT industry

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Why Taiwan Matters

• Taiwan has well demonstrated the strong Global
  competitiveness

WEF/IMD Global Competitiveness Ranking Taiwan
as a high competitiveness and development
potential country
2001/2002/2003/2004/2005/2006/2007
2002/2003/2004/2005/2006
2005/2006/2007
Note The New Flagship Index of WEF Global
Competitiveness Report. Source The World
Competitiveness Yearbook 2007 (IMD), The Global
Competitiveness Report 2007-2008 (WEF)
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Taiwans ST Potentials

• ST Competitiveness Strong national
  competitiveness based on the
• outstanding ST infrastructure and
  performance.

IMD/2007
WEF/2007
Business Sophistication
Innovation
1
USA
1
USA
2
Japan
2
Singapore
3
Germany
3
Hong Kong
4
Switzerland
4
Denmark
5
Sweden
5
Israel
6
Taiwan
6
Korea
7
Korea
7
Sweden
9
Israel
8
Germany
11
Finland
13
Finland
15
Taiwan
27
China
Source The World Competitiveness Yearbook 2007
(IMD), The Global Competitiveness Report
2007-2008 (WEF)
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Taiwans ST Potentials

• Total Patent ranking 4th (Since 1999 )
• Utility Patent ranking 4th (2000 2006)
• ranking
  5th (2007)
• Design Patent ranking 3rd (Since 1992 )

• Patents per million population
• -ranking 1th
• Utility Patents per million population
• -ranking 1th

The Patent Granted in USPTO Per million population
The Patent Granted in USPTO
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Taiwans ST Potentials
A highly cited patent is in the top percentile of
the rankings by times cited in same issued year
and upc3 classification. Only a relatively small
number of patents received this amount of
attention if they contain a significant
advancement. .

• Taiwans highly Cited Utility Patents
• - Ranking 4th (2002-2006 )

• The percentage of Taiwans highly
• cited utility patents is 5.7, above
• Top 10 average, ranked in 3rd.

Highly cited utility patents in 2002-2005 Share
of countries
Percentage of highly cited utility patent as a
total utility patents in 2001-2005
Notecited numbers are accumulated till
2007 SourceUSPTO,Taiwan Institute of Economic
Research(2008)
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Taiwans ST Potentials

• Gross Domestic Expenditure on RD (GERD)
• at current PPPUS16.16 billion
• - ranking 11th
• GERD/ GDP 2.45 (2005) - ranking 10th
• GERD Growth Rate 9.60 (2001-2005)
• - 2nd

RD Expenditure Compound Average Growth Rate
(2001-2005)
Note 1.Acreage of circle refers to RD
Expenditure in 2005 2 2004) IT, NL, AU, CH,
AT. 2.RD/ GDP 2004) IT, NL, AU,CH.
3.GERD CAGR 2000-2004) AU,
CH2001-2004) IT, NL. Source OECD, MSTI 2007/1,
May 2007.
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Taiwans ST Potentials
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Taiwans ST Potentials
E-Government Ranking top of the world
E-Government Performance / Brown University
Taiwan ranked 1st in 2002, 2004, 2005, 2nd in
2006, 3rd in 2007.
Global Information Technology Report 2006-2007 /
WEF -- Taiwan ranked 8th in Government Usage and,
6th in Government Readiness
World Information Society Report 2007 / ITU,
Taiwan ranked 7th worldwide in Digital
Opportunity Index (DOI) amongst 181 countries
surveyed.
ICT subindex in Global Competitiveness Report
2006-2007 / WEF, Taiwan ranked 10th worldwide
amongst 125countries surveyed.
Global Information Technology Report 2006-2007 /
WEF, Taiwan ranked 3rd in Asia, 13th worldwide in
Networked Readiness Index (NRI)
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Taiwans ST Potentials
Well-established ST Infrastructure
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Taiwans ST Potentials
RD Staff5,744 Ph.D. 917
Total Patents7,245 Start-Ups 140
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Taiwans ST Potentials
Total number of foreign-invest RD centers reach
32 in Taiwan till July of 2007
Taipei-23
Taoyuan-3
HsinChu-6
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Introduction of DoIT
What is DoIT A funding agency with a mandate for
strategic planning and policy implementation

• To fill up the capability gap in
• ST innovation

• To energize dual engines via ST innovation

• To strengthen innovation linkages among diverse
  actors

• To promote international cooperation in RD

• To cultivate the human capital needed

• To build up ST infrastructure

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From Research to Business
Business
IPR, Technology , Know-how
Risks
RD Collaboration/ Alliance
Business Solution/Service
Spin-offs
Academic Research Resource
Human Mobility
Open Laboratory
Incubator
Innovation Industrial Park
Business RD Resource
RD Institute Resource
Applicability
Economic Impacts
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Creating Value gtgt Creating Technology
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The challenge and Vision

• To come to terms with the trend towards
  globalization esp. in ST

• To gather internal momentum for industrial
  innovation

• To lay sound foundation for diverse competitive
  advantages, moving beyond the OEM/ODM model

• To promote systematic innovation via
  inter-organizational integration

• To facilitate firms crossing the Valley of
  Death

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Advancing to
Economy - innovalue Innovation driven
Manpower development Brand value Integration
for value-added Fiscal financial reform
Environment - green, sustainable Win-win-win
for environment, energy, and industry
Sustainable use of resources Friendly ecology
Prosperity
Justice
Global - tolerant, open, multiplicity Invest
Taiwan first Global positioning Cross-strait
economic links
Society - fair, just, caring Social security
Narrowing wealth gap Manpower policy
Sustainability
Government -able, honorable, slim, professional
Able and anti-corrupt Fiscal strength Legal
reengineering
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Core Competence
Hub of Global Resource Network
enable
Industrial Tech Value Initiator
Asia Center of Vitality Wellbeing
Innovator of Soft Economy
enrich
Pioneer of New Life Style
Multi-Visions Progress of Taiwan in the Future
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DoIT makes a better future, always with
you. Innovation, just do it.