Encyclopedia of Technology and Innovation Management

Chapter 42. The National Innovation System in Taiwan

Ta-Jung Lu and Jong-Wen Wann

National Chung-Hsing University

Introduction

As they move farther into the 21st century, nations around the world all face global competition as the result of the rapid development of globalization and the knowledge economy. Taiwan, formally known as there public of China, is no exception, and it faces challenges not only because of intensifying globalization but also from emerging Asian economies, a declining birthrate, an aging population, and decreasing competitiveness. The weakening of competitiveness has resulted in lowered exports, a diminished GDP growth rate, and a high unemployment rate. In order to increase national economic growth and improve national competitiveness, Taiwan has been devoting great efforts to improving its innovation capabilities by investing heavily in basic research, accelerating research and development (R&D), attracting and cultivating science and technology (S&T) personnel, and developing key technology-intensive industries. Taiwan has successfully created its information communication technology (ICT)-based economic development and has begun to play instrumental roles in the world over the past two decades, thanks to well-planned industrial policies and the creation of a strong S&T infrastructure. However, Taiwan has yet to exploit its existing S&T strengths, upgrade industrial technology, and build new innovative capabilities to continue providing quality lifestyles ...