Innovation activity in Taiwan and Russia

Characteristics of economic and industrial development of Taiwan. Public policy and the implementation of niche on the islands of the Pacific Ocean. Analysis of the Russian national innovation system. Investigation productivity shekels in Russia.

Рубрика Иностранные языки и языкознание
Вид дипломная работа
Язык английский
Дата добавления 14.07.2016
Размер файла 382,6 K

Отправить свою хорошую работу в базу знаний просто. Используйте форму, расположенную ниже

Студенты, аспиранты, молодые ученые, использующие базу знаний в своей учебе и работе, будут вам очень благодарны.

Размещено на http://www.allbest.ru/

INRODUCTION

In the era of radical innovation, a severe competition within high tech industries is intensified, and the innovation has considered as a key element in today's economic development. Many developing countries are currently trying to enhance R&D development investment and strength innovation system function with limited resource. It is important to have new growth energy for countries economic development by exploring emerging technologies, developing successfully new industries and cultivating new ventures. Russia's innovation potential is greater than that of most other countries. The country benefits from a substantial science base and a well-developed education system in science and technology. However, Russia is striking imbalance between the public sources devoted to knowledge creation and the observed outputs in terms of innovation. Christian Gianella and William Tompson, “Stimulating Innovation in Russia: The Role of institutions and Policies,” Economics Department Working Paper 539 (2006):67 In Taiwan, fostering innovative activities in traditional technologies is one of the major tasks in economic reform. In order to keep the innovated sustainability, Taiwan government devotes great efforts on the impetus of technology and the concept-forming innovation of technology commercialization. National innovation system helps to systematize various perspectives by providing tools to describe the complex ecology of technology.

The economic performance of developed and developing countries demonstrates that government plays an important role in the innovation system, and act as a facilitator and demander. Taiwan and Russia's government make great efforts in innovative activities. The question how to do innovative activities more efficiency and effectiveness and how to use their experience for innovation of the country undoubtedly require the further study.

1) Topically

Global innovation and economic development are global trends; innovative activities and technology commercialization draw much attention from the countries in the world. Due to Taiwan's geographic location, Taiwan builds business, education and technology relationships with foreign countries and heavily depends on these relationships to improve economy and competitiveness in order to keep the innovated sustainability. O'Neil (2001) O'Neill, J, “Building Better Global Economic BRICs,” Building Better Global Economic BRICs Global Economics (2001):66 refers that Brazil, Russia, India and China (BRIC) have been transforming themselves into advanced economic developing countries. Russia is one of the BRIC countries and currently owns 28 special economic zones (SEZs) to attract foreign investment and promote economic and technological development.

National innovation system includes national industrial innovation policy and industrial innovation system. The former refers to innovation policy and industrial policy, and the latter refers to whole innovation system and environment of the country. National innovation system is essential for developed and developing countries. In contrast, developing country is more necessary to advocate national innovation system. The rise of industrial development in developed countries are often requires government to provide industrial policy timely in order to create favorable industry development.

Taiwan fosters technology industry successfully with national innovation system. Russia also speeds up to improve technology by attracting foreign investment and industrial policy. Russia owns the technological resources and talents in different fields, and Taiwan has abundant experiences of global technology commercialization, product promotion and innovated business model; therefore, it is inevitable for Taiwan and Russia to collaborate with each other and to stimulate the impetus of innovation and economic development from the perspectives of innovative activities and technology commercialization.

Russia's interaction with foreign countries in the implementation of innovative projects is generally a one-time and non-systemic in nature. Individual successful cases are replicated inadequately and do not actually affect or improve Russia's economic situations. Russia should integrate the technology and experience of foreign countries. In the field of Science and Technology (S&T), Taiwan built also successfully Science Park and become one of the top leaders in S&T place in the world. The high-tech corridor created in western Taiwan that helped drive the development of upstream, mid-stream, and downstream industries in Taiwan, and contribute to Taiwan's high-tech industry development and economy. Russian innovation system is undergoing the process of restructuring and adapting to new market conditions. In this research, we studied similarities and differences of government policy in national innovation system between Taiwan and Russia. In order to propose to Taiwan's government, what they could make and create better policy and environment to enhance cooperation between Taiwan and Russia in the future. This is the main motivation of this study.

2) Literature review

Schumpeter (1934) Schumpeter, J.A., The Theory of Economic Development (Oxford University Press: London, 1934) identified innovation as the critical dimension of economic change. Economic change revolves around innovation, entrepreneurial activities, and market power. Technological innovation creates temporary monopolies; however it is necessary to provide the incentive necessary for firms to develop new products and processes. The Oslo Manual defines innovation as the implementation of a new or significantly improved product (good or service), or process, a new marketing method, or a new organizational method in business practices, workplace organization or external relations. Innovation, thus defined, is clearly a much broader notion than R&D and is therefore influenced by a wide range of factors, some of which can be influenced by policy. OECD and Eurostat, Oslo Manual - Guidelines for Collecting and interpreting Innovation Data (Paris: OECD, 2005) Innovation can occur in any sector of the economy, including government services such as health or education. The current measurement framework applies to business innovation; however innovation is also important for the public sector.

Neoclassical economic theory always thinks that technological innovation drives by market and competition stresses enterprises for innovation. Schmookler's “demand-pull” hypothesis, implying that innovation is a function of market demand, has been widely accepted (Schmookler, 1966) Schmookler. J., Invention and Economic Growth (Cambridge, MA: Harvard University Press, 1966).. Myers & Marquis (1969) Myers S., Marquis D.G., Successful industrial innovations: a study of factors underlying innovation in selected firms. (Washington, DC: National Science Foundation, 1969) studied 567 innovative products from 5 different industries, and then concluded that perception of the market demand is the primary factor drives innovation. Langrish (1972) Langrish I., Wealth from knowledge: a study of innovation in industry. (Wiley: Halstead Press Division, 1972) studies some English innovation projects, and also identified that market demand is primary function for innovation process. Baumol (2002) Baumol W.J., The free-market innovation machine: analyzing the growth miracle of capitalism. (Princeton: Princeton University Press, 2002) believed free market economy is the mechanism of innovation. From the above point of view, innovation drives market need. Government intervention in the innovative process is due to market demand. However, Mowery & Rosenberg (1979) Mowery D. and Rosenberg N., The influence of market demand upon innovation: a critical review of some recent empirical studies., Research Policy 8, no.2 (1979): 102-153 found market demand for innovation couldn't be proved by practical, therefore they questioned about this market-driven theory. They believed innovation is attributed largely by government intervention. Freeman (1987) Freeman C. Technology policy and economic performance: lessons from Japan (London: Pinter Publishers, 1987) proposed the concept of NISs in his study of Japan's technology development, defining it as the network of institutions in the public and private sectors whose activities and interactions initiate, import, modify and diffuse new technologies. This is the first concept of NIS. Lundvall (1992) Lundvall B.A., User-producer relationships, national system of innovation and internationalization, National Systems of Innovation: Towards a Theory of Innovation and Interactive Learning, (1992):45-67, Nelson (1993) Nelson R.R., National innovation systems: a comparative analysis. (Oxford: Oxford University Press, 1993) and OECD OECD, National innovation system. (Paris: OECD, 1997) developed the effect between government and NIS. They thought NIS helps to systematize innovation by providing tools to describe the complex organizational ecology in which technological change happens. Government as a system supplier is no doubt the leader of technology innovation.

An analytical distinction has been made by Feinson (2003) Feinson, S., National innovation systems overview and country cases. (2003): 13-38. In: B. Bozeman, D. Sarewitz, S. Feinson, G. Foldair, M. Gaughainm, A. Gupta and B. Sampat (eds.), Synthesis Report on the Findings of a Project for the Global Inclusion Program of the Rockerfeller Foundation. Rockefeller Foundation, New York. into “narrow” concept and “broad” perspective of NIS. NIS concept includes the institutions and policies directly involved in scientific and technological innovation and NIS perspective takes into account the social, cultural, and political environment of the country being examined. According to OECD (1999) OECD. Managing National Systems of Innovation. (Paris: OECD,1999), NIS institutions, defined in the narrow context, can be divided into five main categories:

• Governments (local, regional, national and international, with different weights by country) that play the key role in setting broad policy directions;

• Bridging institutions, such as research councils and research associations, which act as intermediaries between governments and the performers of research;

• Private enterprises and the research institutes support in R&D finance;

• Universities and related institutions that provide key knowledge and skills;

• Other public and private organizations that play a role in the national innovation system (public laboratories, technology transfer organizations, joint research institutes, patent offices, training organizations and so on).

Broad NIS relates to the respective roles of the main actors in innovation processes (firms, public and private research organizations, and government and other public institutions), and the forms, quality, and intensity of their interactions (Fig 1).

Figure 1 Actors and linkages in the innovation system

Source: OECD, Managing National Innovation Systems, 1999

These actors are influenced by a variety of factors that exhibit some degree of country specificity: the financial system and corporate governance, legal and regulatory frameworks, the level of education and skills, the degree of personnel mobility, labor relations, prevailing management practices, etc. The variable role of government is partly reflected in the levels and structures of public R&D financing. In “catch-up” countries, government R&D expenditure accounts for a higher share of total R&D than in more advanced economies. These countries often still need to build a scientific and technological infrastructure and their business sectors tend to have only weak technological capabilities.

3) Research goals and tasks

The main goal of this research is to analyze the milestones national innovation system in Taiwan and Russia's government policy. Government policy can influence on industrial and economic development in the country. Taiwan's industries need the government policy and direction to support them to invest in foreign countries. Russia needs foreign investors to improve their capital and technology.

The research objectives are as follows:

- To identified the important of government policy in NIS;

- To analyze the government policy, tools process of NIS effect in Taiwan and Russia;

- To evaluate the evaluation of industrial development and national innovation system (industry activities, public/private interactions, technology diffusion, personnel mobility, etc.) in Taiwan and Russia;

- To discover the potential cooperation possibility between Taiwan and Russia. A proposal for Taiwan's government and enterprises to improve and increase business opportunities in Russia;

Government, academic society, research institutions and public/private sectors are the main elements and instrument of National Innovation System. Primarily, this research has the following hypothesis:

The innovation processes are implemented by the functions and interactions created by actors and institutions within the innovation system. Regarding the institutions involved in NISs and their functions, the administrative organizations that formulate and co-ordinate the S&T policy and that control public-financial organizations, the private research sector, the higher education institutions, and the bridging institutions that act as intermediaries among the other actors.

Government is mainly support and facilitate in national innovation system. Public sector, research institution and university that supported or led by government that are cooperate with basic science research, government needs to build a risk-sharing mechanism or encourage system via policy tools to motivate enterprise innovation. Innovation is relied on NIS to analyze and improve. Government function upgrades enterprises' innovative capability and the connection among institutions. Government policy is to promote the cooperation between university and enterprise, also to cooperate with enterprises in order to increase their innovative performance.

Hypothesis of the research:

Government policy is the key element of NIS.

Statement of the questions:

(1) What government policy of countries are used in innovation field;

(2) Understand the evolution of NIS and its importance for industrial and economic development from the perspective of the countries, in order to analyze the feature and effectiveness of government policy;

(3) Compare both similarity and difference policies in two countries, in order to propose the suggestion for Taiwan's government to improve their business activities in Russia

4) Conceptual framework of the research

National Innovation System (NIS): The concept of national innovation systems is attributed to (Freeman 1987) Freeman, C., Technology Policy and Economic Performance: Lessons from Japan (London, Frances Pinter, 1987), (Nelson 1993) Nelson, R. R., Ed., National Innovation Systems: A Comparative Analysis (New York, Oxford University Press, 1993), and (Lundvall 1992) Lundvall, B.A., National Systems of Innovation: Towards a Theory of Innovation and Interactive Learning (London, Frances Pinter, 1992). All three scholars work in the tradition of evolutionary economics (Nelson and Winter 1982) Nelson, R. R. and S. G. Winter, An evolutionary theory of economic change (Cambridge, MA, Belknap Press of Harvard University Press, 1982), where technological change is seen as a process in which entrepreneurs and inventors generate a variety of new technologies but only some of those variants survive the selective pressures of market and non-market conditions. Government as a provider of the system is no doubt the leader of technology innovation.

Taiwan faced on two energy crisis in 1973 and 1979. Lack of resource, labor intensive industry and new technology revolution became Taiwan's big challenge. Therefore, Taiwan's government promoted high value added and technology intensive industry to facilitate industry upgrading. Government acts as an intermediary with industry, university and institutions, and develops innovation system for high tech industry. “Two Trillion and Twin Star Development Program” and “Science Park” are two successful cases that government enhances Taiwan's industrial technology innovation capability. This success was obtained from the leading role of government.

Russia benefits from a substantial science base and a well-developed education system in science and technology. It's the most potential country of basic science area in the world. Since 1990s, Russian government has innovation policies to develop innovation strategy. However, Russia is lack of the condition to commercialize and expand production capacity. With the implementation of these policies, the current direction of Russian science and technology development has begun to move in conjunction with the market economy. Therefore, the framework conditions currently for science and technology have changed significantly in Russia. Innovation infrastructure has been established, such as Industrial park, Special Economic Zone (SEZ), Rusnano, Skolkovo, etc. Russian government start to focus on ensuring world needs of the technology sector of national innovation system.

This study will study the performance of NIS to see the result of government policy in Taiwan and Russia. The performance of NISs largely depends on how these actors, which include government, enterprises, universities, public and private research institutes, bridging institutes, and other contributing institutions, function and interact with each other to develop and apply innovative knowledge. Therefore, the functions and the interactions of institutions involved in NISs are the main contexts of studying NISs, and thus this study proposes them as the two analytical and comparative dimensions. Regarding the institutions involved in NISs and their functions, Capron et al. (2000) Capron, H., Cincera, M., Dumont, M., The national innovation system of Belgium: the institutional profile. In: Capron, H., Meeusen, W. (Eds.), The National Innovation System of Belgium, 2003, Physica Verlag, Heidelberg. suggest that four groups of actors are involved in NISs, the administrative organizations formulate and co-ordinate the S&T policy, and control public-financial organizations, the private research sector, the higher education institutions, and the bridging institutions that act as intermediaries among the other actors. OECD (1997) proposed four main interactions within NISs, which are joint industry activities, public/private interactions, technology diffusion, and personnel mobility. Then, OECD (1999) suggests that an NIS requires institutions with six different functions: technology and innovation policy formulation, performing research and development (R&D), financing R&D, promotion of human resource development, technology diffusion, and promotion of technological entrepreneurship. This research is based mainly on the OECD idea, but since the technology diffusion involves several actors, we will discuss it in the section of interactions. However, both in innovation theory and in policy, a shift occurred from a focus on knowledge and technology creation towards diffusion and absorption. Bridging institutions emerged to facilitate the interactive aspects of the innovation process and to resolve mismatches among different types of actors in the innovation system. Therefore, this research adds technology bridging as one of the institution's functions within NISs.

In addition to policy formulation, performing R&D, financing R&D, promotion of human resource development, and promotion of technological entrepreneurship, there are six institution functions of the innovation system in our analytical framework. Collaborations are forms of strategic alliance between firms and other organizations, which are developed for assisting partners in collaborating to complete the innovation process by completing resources and reducing risks (Liyanage, 1995). Liyanage, S., Breeding innovation clusters through collaborative research networks. Technovation 15, no.9 (1995): 553-567. Second, all actors in a national economy are involved in diffusion processes (Hubner, 1996). Hubner, H., 1996. Decisions on innovation and diffusion and the limits of deregulation. Technovation 16, no.7 (1996): 327-339. Technology diffusion is especially important for the traditional manufacturing sector and service industries, which may not be involved in R&D or innovation themselves. Effective technology diffusion can still serve as a reward for those who invest in and implement innovation. In addition, most studies of technology diffusion demonstrate that the skills and networking capabilities of personnel is the key to implementing and adapting new technology. And personnel movement is an important channel for transferring the tacit knowledge that they carry. Finally, the informal linkages and contacts among institutions through which knowledge and information are transferred are also important. OECD (1997) finds that some countries innovate more effectively through informal relations than formal ones. This study employs OECD's four types of interactions, but merges the two concepts of joint industry activities and public/private interactions into R&D collaboration, retains the next two interactions, technology diffusion and personnel mobility, and adds a new interaction, namely, informal interaction. The innovation processes are implemented by the functions and interactions created by actors and institutions within the innovation system. Chang and Shih (2004) Chang, P.L., Shih, H.Y. The innovation systems of Taiwan and China: a comparative analysis. Technovation 25, (2005): 155-169. summarized the main institutions and interaction within NISs and propose their analytical framework (Fig 2). This study will follow this framework to understand performance of NIS in both Taiwan and Russia.

5) Chronological framework of the research

According to Taiwan's official information, science and technology development in Taiwan may be divided into two stages: a labor-intensive stage from 1952 to 1985 and a technology-intensive stage after 1985. The later stage has been marked by strong government support for applied technological development and by the promotion of technology-intensive industries. Russian innovation policy for the period of 2001-2005 was formulated in 2000. The draft covered legislation and regulatory support problems in the innovation sector, stimulation measures on innovation and infrastructure development, and the development of economic and financial mechanisms to speed up innovation. Therefore, we study the government policy of NIS in Taiwan and Russia since 1985 and 2000, and their performance in 2014.

6) Methodological framework of the research

In order to prove the hypothesis, case study was applied in this study. Taiwan and Russia will be the case study in this research. Taiwan and Russia represent as developed and developing country. We can see the different evolution in two economic systems. This study also implied empirical analysis method. It helps to demonstrate government policy related to the development of economy and innovation. The processes of economic, industrial and technological development are important in government policy and its performance. Therefore, the evolution of national innovation system in Taiwan and Russia could be shown that government policy plays not only the major roles in the NIS of the countries but also became the main drivers of the performance.

Taiwan and Russia both have vision 2020 to develop further their economy. The aim of Taiwan's 2020 strategy is to upgrade traditional industry, speed up emerging industry and service-oriented manufacturing. Taiwan's government plans to promote Taiwan's industrial structure adjustment and optimization, and to strengthen its competiveness in the world. Russia's 2020 strategy is aim to implement diversity of economic structure; develop a basis for science and technology, and to strength Russian capability to innovate. Thus, Russia's innovation will become the main driver of Russian economy.

As far as the hypothesis of this study concerns the term “NIS”, NIS theory is also applied in this study, particularly the definition of the factors in NIS model. This study implied the model of main institutions and interactions involved in national innovation system from Chang and Shih (2004) to evaluate the performance of government policy in innovation activities in Taiwan and Russia.

7) Source of information.

The main primary sources for this study are the National Innovation System project in OECD, which includes the report of Diffusion Technology to Industry: Government Policy and Program, Oslo Manual Proposal Giddiness for Collecting and Interpreting Technological Innovation Data in 1997 and Managing National Systems of Innovation in 1999. Besides OECD official project report, Stephen F. in 2003 published “National Innovation Systems Overview and Country Cases” to help us to understand NIS better and give us an overview in different countries.

Taiwan and Russia's scholars focused their attention on the study of National Innovation System in Taiwan and Russia, such as Pao-Long Chang, Mei-Chih Hu, Grace T.R. Lin, Alexey Kindras, Dirk Meissner, Konstantin Vishnevskiy, and Mario Cervantes.

Also this study are used the materials of government policy and statistic information that are published from Taiwan and Russia's official website. Ministry of Economic Affairs, R.O.C. (Taiwan), Directorate-General of Budget, Accounting and Statistic, Executive Yuan, R.O.C. (Taiwan), Ministry of Science and Technology (Taiwan), Industrial Economics and Knowledge, R.O.C. (Taiwan), Ministry of Economic Development of the Russian Federation, Russian Federal State Statistics Service, and different publications of national innovation system. This type of sources provides provide analyze data and government plans, which include the latest and the most relevant information.

Furthermore, non-governmental organization, university and institutions involve in NIS activities. Such as Industrial Technology Research Institute of Taiwan, R.O.C, Hsinchu Science Park, Russian Venture Capital (RVC), National Research University Higher School of Economics (HSE), etc. This study also analyzes data introduced by these organizations.

8) Structure

This research consists of four main chapters. In the first chapter, this study shows the topicality, the main goals, conceptual and methodological frameworks of the research, and the source of information. The second chapter shows the case study in Taiwan. In this part of the research, this study analyze the economic and industrial development in Taiwan, government policy and formulation, the implementation of innovation, and the results of Taiwan's innovation capability. The third chapter shows the case study in Russia. In this part of the research, this study analyze the economic and industrial development in Russia, government policy and formulation, the implementation of innovation, and the results of Russia's innovation capability. Finally, the last chapter shows the current status of NIS performance in Taiwan and Russia. Thus, this study proposes the possible cooperation approaches between Taiwan and Russia.

1. CASE STUDY - TAIWAN

Twenty years ago, Taiwan faced the common constraints of Small and medium-sized enterprises (SME) dominated developing countries. Driven by a unique national innovation and diffusion system, the successful development of Taiwan's high-tech industry has been widely acclaimed nowadays. Despite the unstable economy worldwide, Taiwan's competitiveness still manages to remain sustainable and demonstrates great tenacity and enthusiasm in developing competitive technologies. The long-term investment has laid a solid foundation for Taiwan's competitiveness in technology innovation. Taiwan spearhead innovation by reinforcing integration of domestic resources, developing core technologies for industries, and building a cooperative platform connecting industrial, academia, and research sectors. The transformation of technological resources to economic value will continue effectively to build up Taiwan's competitiveness. Blending technology investment effectively to formulate new business models is the key driving force for economic growth and global competitiveness of a nation. Over the past few years, Taiwan has been assisting industries in building up R&D capability and has made abundant technological achievements. Taiwan's industries' technology development has been highly recognized around the world.

1.1 Taiwan economic development

Over the past six decades, Taiwan has achieved a remarkable record of rapid economic growth, stable prices and equitable income distribution. This has come to be known around the world as the one of the “Four Asian Tigers.” Taiwan's per capita GDP rose from US$213 in 1952 to US$18,588 in 2012; its GDP increased from US$1.711 billion to US$430.1 billion; and its foreign trade expanded from US$303 million to US$526 billion, the 17th largest exporting country and 18th largest importing country in the world. Over these decades, Taiwan has successfully transformed from an agricultural society to a key player in the global Information and communications technology industry (ICT). In 2012, Taiwan was a global top-three supplier of 35 industrial products and the world's number one supplier of 20, including mask ROM, motherboards, notebook computers, customer premises equipment (CPE), personal navigation devices, foundry services, IC packaging, IC testing, electro-deposited copper foil, optical discs, Chlorella, and electric wheelchairs & mobility scooters. BusinessWeek magazine published a cover story with the title of “Why Taiwan Matters,” on 15th of May in 2005, which shows Taiwan's vital role in the global technological supply chain. Taiwan's economic power also demonstrated in outward foreign direct investment (FDI). Taiwan also demonstrated its economic power in outward foreign direct investment (FDI). In the end of 2012, Taiwanese FDI in Southeast Asia amounted to more than US$80.3 billion, with Taiwan ranking as the second biggest foreign investor in Vietnam and the third biggest in Thailand. Taiwanese investment in mainland China added up to US$126.1 billion; Taiwan is mainly foreign investor in mainland China. According to World Investment Report of United Nations Conference on Trade and Development in 2012, the accumulated stock of outward FDI from Taiwan reached US$226.93 billion at the end of 2012, up 6.1% year on year. Ranking 15th in the world and 5th in Asia behind Hong Kong, Japan, Mainland China and Singapore, Taiwan is one of Asia's main providers of FDI.

1.2 Taiwan industrial development

A very important factor behind Taiwan's economic success has been pragmatic and flexible government policies - especially the promotion of social and political stability and the adoption of an outward-looking development strategy. And whenever new problems have arisen, timely, market-friendly policy initiatives have been undertaken to cope with them. According to information from Council for Economic Planning and Development Executive Yuan in Taiwan, Taiwan's economic development can be divided into six stages since 1950s. In this study, we list three stages from Taiwan's technology intensive development since 1980s:

1) The 1980s: Economic Liberalization and Technology-Intensive Development

In the early 1980s the economy began to reap the benefits of trade-promotion policies, and an increasing surplus was recorded in foreign trade. To address growing imbalances in the economy, the government adopted economic liberalization and internationalization as new guiding principles for Taiwan's further development, and endeavored to bring market forces into full play. At the same time, Taiwan began to tap its ample capital resources to develop such capital and technology intensive as electronics, information, and machinery. Biotechnology, photonics, food science and hepatitis prevention were added in 1982. In the 1980s, martial law was lifted in Taiwan. The New Taiwan dollar appreciated and excess capital flowed into the stock and real estate markets. Entrepreneurs began strategizing their future. “Upgrading” was the key to survival. The government intensively developed the electronics industry during the 1980s and established the 1st science park in Hsinchu. Industrial Technology Research Institute in 1983 and cooperation with private companies laid the foundation for the information industry. The government took active steps to loosen controls and protection in the economy, carrying out policies for the liberalization of finance and trade and the privatization of state-owned enterprises. And with the establishment of the first science-based industrial park in 1980, industry entered a trend of gradual development toward science and technology orientation. During this period, Taiwan's economy grew 7.7% annually.

2) The 1990s: Booming Development of the IT Industry

Although rising wages forced labor-intensive industries to move offshore, Taiwan's high-quality human resources and comprehensive industrial clusters furnished prime conditions for the booming development of the IT industry. This enabled Taiwan to smoothly transform and upgrade from ascendancy in the manufacture of umbrellas and toys to ascendancy in the manufacture of IT products. In 1993, it became the world's top producer of many IT products, supplying more than half of the global market for monitors, motherboards and image scanners. In 1995, Taiwan's IT industry became the world's third-biggest producer of IT hardware, and played an indispensable role in the global high-tech industry division of labor. Also in 1995, the government launched the Asia-Pacific Regional Operations Center (APROC) plan in a drive to enhance Taiwan's global logistics position and industrial level by developing it into an operations hub for manufacturing, transshipment and specialist services. The government passed “The Statute for Upgrading Industries” in 1990 and encouraged industrial research and development through tax and rental incentives. In 1995, Taiwan exported as many as 4.66 million personal computers, 2.59 million notebook computers and as many as 64-72% of the world's motherboards, monitors, keyboards and mice. As Taiwan's economy advanced steadily into the mature stage of development, per capita GNP broke above the US$10,000 level in 1992. To satisfy the people's expectation for improving quality of life, the government set about an active program of investment in mass transit, freeway and expressway, environmental protection, and other such public construction projects, while striving to enhance the fundamental constitution of the economy. During this period, despite the impact of the Asian financial storm, Taiwan's economy still grew 6.3% annually.

3) 2000-2010: Industrial Remodeling and Global Linkage

In 2000, the government unveiled a new vision for pursuing knowledge-based, sustainable and just economic development, involving all-out investment in human resources, R&D innovation, logistics channels and the living environment, and vigorous promotion of the so-called “two trillion and twin star” industries of semiconductors, image display, biotechnology, and digital content, with a view to raising the innovative capabilities of domestic industry and enhancing the people's quality of life. And on January 1, 2002, Taiwan was formally admitted as a member of the WTO, opening a new phase in the gradual international alignment of its economic and trade systems and the repositioning of the core competitive advantages of the Taiwan economy. In 2008, to bolster Taiwan's economic fundamentals against the impact of the global financial crisis, the government set its focus on vigorously promoting infrastructural investment, industrial remodeling, inward investment and global linkage, with the aim of using the twin engines of domestic demand and exports to uplift Taiwan's growth potential.

1. On the public investment front, the government has been carrying out the i-Taiwan 12 Projects with the aim of creating a prime investment and living environment.

2. For industrial remodeling, the government has targeted the active promotion of six major rising industries (including biotechnology, and travel & tourism), four emerging intelligent industries (including cloud computing and smart electric vehicles), and ten key service industries (including international medicine and urban renewal) as means of driving a new leap upward for Taiwan's industry.

3. To attract investment, the government has been carrying out the Invest in Taiwan initiative to spotlight Taiwan's most eye-catching investment opportunities. It has also mapped out the Homes for Industries, Industries for Homes plan aimed at directing investment straight to the most appropriate localities, where it can have best effect in creating local jobs and spreading the fruits of economic growth among the whole population.

4. The enhancement of Taiwan's global linkage is being pursued through the substantial improvement of cross-strait relations, yielding such gains the opening of direct cross-strait transport and the signing of the cross-strait Economic Cooperation Framework Agreement (ECFA); and by a bold program of economic and financial reforms, including reductions of estate and gift taxes form a top 50% to a flat 10% and of business income tax from 25% to 17%, to create a friendlier and more efficient business environment. Actively involve regional integration, separately signed The Agreement between New Zealand and the Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu on Economic Cooperation (ANZTEC) and The Agreement between Singapore and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu on Economic Partnership (ASTEP) with New Zealand and Singapore. Government now is working on creating the beneficial condition in order to join the partnership with The Trans-Pacific Partnership (TPP) and Regional Comprehensive Economic Partnership (RCEP).

Despite having to contend successively with the bursting of the dotcom bubble, the 911 terrorist attacks, the SARS epidemic, and the global financial tsunami, continuous restructuring of industry toward a knowledge-based economy has enabled Taiwan to achieve an average economic growth rate of 4.1% from 2000 through 2010.

1.3 Taiwan national innovation system

Taiwan's technology development policy takes principle of whole planning and assignment separately. Industrial technology development is responsible by Ministry of Economic Affairs (MOEA) for the technical development of applied research. Besides research institution in MOEA, R&D department of state-owned business and specialized research institution are also mainly work on R&D of industrial technology. Then research institution will transfer technology into enterprises in product development and commercialization activities. Origin industry technology resource is available from technical research institutions, academia participation, overseas technology companies, technology import and strategic alliance, and so on.

Research institutions interact with industry by technology transfer and collaboration. They provide technical guidance, information provision, and talent training to assist technology development of industry. Ministry of Science and Technology (MOST) drive specific research projects. Academia works with industry in technology counseling and talent training via projects. In applied technology development filed, MOST leads industry-university collaboration project, innovative technology research project and oriented-target research project. MOEA is responsible for import foreign technology project, science and technology projects and industry professional project. In commercialization and application filed, MOST runs key components project and MOEA lead in new product project, industry cooperative research project. State-owned enterprises help SMEs develop their future plan.

Taiwan dominated by SMEs, that accounting for 96% of Taiwan's enterprises. However, due to the size of SMEs, they lack of energy to perform R&D. OEM culture promote Taiwan's high tech development, but also lead Taiwan's manufacturers focus on efficiency and reduce costs, while ignoring the development and creation of added value. Figure 3 shows Taiwan's national innovation system interaction. Triple helix model (government-university-industry) has a prototype in Taiwan to run innovative activities.

1.4 Government policy and implementation of nis in taiwan

Innovation policies can be seen as a framework to encourage firms to innovate, either through industrial technology, product facilitation or an approach based on the construction of a favorable environment. However, Taiwan's SME-dominated industrial structure and a capital market which is still at the very early stage of its development leads to insufficient R&D and innovation. Therefore, by making use of various policy tools to reduce the risks associated with innovation, the government can seek to encourage innovative activities and assist in the creating an environment conducive to R&D investment, thereby reducing the likelihood of market failure. Various innovation policies have already been designed to enhance firms' innovative activities and to seek to reduce the likelihood of market failure. First of all, the Hsinchu Science-based Industrial Park (HSIP) was established to provide an environment conducive to the development of the Taiwan's high-tech industry. Secondly, innovation alliances have been organized as a means of spreading R&D risks between firms and securing first mover advantages.

Thirdly, the scope of the government-sponsored Industrial Technology Research Institute (ITRI) has been expanded to serve as a channel for technology transfer within the private sector; the majority of the budget for the National Science and Technology Projects (NSTPs) has also been allocated to ITRI in an effort to boost the Institute's innovative capacity. Fourthly, tax incentives have been made available to absorb some of the R&D costs of firms and to encourage them to engage in R&D activities. Finally, a venture capital industry has been established, with the growth of this sector having already helped to speed up the overall development of the high-tech sector.

The government in Taiwan has implemented a number of policies measure in recent decades aimed at enhancing firms' innovative investment, with notable policy measures focusing on speeding up the development of the high-tech sector including: establishing the Hsinchu Science-based Industrial Park to provide an environment conducive to the high-tech industry; organizing innovation alliances to spread out firms' R&D risks and to secure first mover advantages; expanding the government-sponsored research institutes to serve as a technology transfer channel for the private sector; providing tax incentives to absorb some of the costs of firms' R&D activities; and providing access to sources of venture capital. Kuen-Hung Tsai and Jiann-Chyuan Wang, “The Innovation Policy and Performance of Innovation in Taiwan's Technology- Intensive Industries,” Problems and Perspectives in Management (2004)

Taiwan's S&T development organizations can be divided into three categories - promotion agencies, implementation agencies and planning and assessment systems. At present, S&T development in Taiwan is based on the principle of centralized planning and decentralized implementation. Since 1978, the MOST became responsible for developing science-based industrial parks. The MOST committee comprises of the MOST minister, minister without portfolio, directors of research institutions, agency heads, and scholarly experts. The committee makes decisions on national S&T policies, S&T resource integration and allocation guidelines, major S&T projects, and important S&T laws and regulations and submits them to the Executive Yuan for approval so that the implementation of national S&T affairs is organized and consistent. Taiwan's policy on S&T development is based on the consensus of the National Science and Technology Conference (NSTC). The “National Science and Technology Development Plan” submitted by the NSC is approved by the Executive Yuan, and implemented by relevant ministries and agencies.

Since Taiwan's SMEs lack the capital and human resource talent needed to establish marketing channels and undertake more advanced technological development, the government has adopted a number of policy tools to reduce the disparity between social and personal compensation. Tsai and Wang (2002) Tsai, K.H. and Wang J.C., An Examination of Taiwan's Innovation Policies and R&D Performance, Division of Taiwan Economy, Chung-Hua Institution for Economic Research 21 (2002) summarized the main policy tools used are innovation alliances, technical support, and innovation incubators in Taiwan.

Not only innovation alliances, technical support, and innovation incubators; science park is the mainly technological development driver in Taiwan. Taiwan's development policy for science parks is to create a region that balances R&D, manufacturing, lifestyle and ecology while also environmental protection, economics and digitalization into account. With the development of high-tech industries as the focus, the aim is to actively expand the industry clustering effect to realize sustainable development and to meet local needs. The government began building the first park in 1980. The Hsinchu Science Park (HSP) and the industries that sprung up around the park not only created many world number ones but also became known as “Taiwan's Silicon Valley.” Using the experience of the HSP as a guide, the government set up the Southern Taiwan Science Park (STSP) and the Central Taiwan Science Park (CTSP) in 1996 and 2003, respectively. The high-tech corridors created in western Taiwan helped drive the development of upstream, mid-stream, and downstream industries in Taiwan, and contribute to Taiwan's high-tech industry development and economy. The six satellite science parks under the HSP are the Hsinchu, Jhunan, Longtan, Hsinchu Biomedical, Tongluo, and Yilan. Together they cover 1,342 hectares. The CTSP consist of Taichung, Huwei, Houli, Erlin, and Zhongxing New Village Advanced Research Parks. Together these cover 1,662 hectares. The STSP covers 1,613 hectares and consist of Tainan and Kaohsiung parks. These three large science parks have a total surface area of 4,610 hectares.

Taiwan's government began planning the framework of the Golden Decade National Vision in October 2010, and sequentially announced eight visions and administrative themes. The “Golden Decade National Vision” Program was formally approved in May 2012 with the overall objective to develop a “prosperous, harmonious, sustainable and happy Taiwan.” The eight visions of “Golden Decade National Vision” are energetic economy, just society, clean government, quality education, sustainable environment, comprehensive development, cross-Strait peace, and friendly international relations.

“Energetic economy” is the closest linked to S&T, and objectives of its administrative them “S&T innovation” are: (1) To increase nationwide R&D funding so that Taiwan's S&T innovation capabilities remain at the top of the world; (2) To develop advanced research fields and establish world class research communities; (3) To utilize industrial benefits of S&T innovation and drive the increase of value-added; and (4) To apply advanced S&T to create a happy and safe living environment for all citizens. “Innovation” will become the engine driving economic growth; S&T innovation and quality education will be facilitated by innovation capabilities, talents and developments. Six strategies will be implemented are: (1) Innovate the S&T decision-making and governance mechanisms; (2) Increase S&T research and development value and performance; (3) Create a friendly environment for business start-up and incubation; (4) Plan an environment where no talent is wasted; (5) Step up basic and key technology R&D; and (6) Transform into an innovation-based economy. Yearbook of Science and Technology Taiwan ROC, National Applied Research Laboratories Editor: Science & Technology Policy Research and Information Center, 2012, http://yearbook.stpi.narl.org.tw

1.5 The performance of innovation in taiwan

In the WEF Global Competitiveness Report 2014-2015, Taiwan was ranked 14th out of the 144 economies worldwide and the 4th in Asia. Besides a significant increase in the competitiveness ranking, Taiwan was ranked 2nd in the world under the State of Cluster Development category. In IMD's 2014 World Competitiveness Yearbook (WCY), Taiwan demonstrated excellent achievements in science and technology infrastructure with the 13th ranking among the 60 economies covered by the WCY, and the 4th ranking in Asia. Taiwan also is the top 10 innovation in Global competitiveness. This indicates Taiwan has been staying competitive with technology and science foundations and efforts in encouraging innovation have paid off.


Подобные документы

  • The geographical position of Russia and its parts. Russia as the origin in Kiev Russia, the State emblem of Russian Empire. The dissolution of the Soviet Union. The population of the Russian Federation. Peculiarities of Russian tourism development.

    контрольная работа [15,5 K], добавлен 18.07.2009

  • Moscow is the capital of Russia, is a cultural center. There are the things that symbolize Russia. Russian’s clothes. The Russian character. Russia - huge ethnic and social mixture. The Russian museum in St. Petersburg. The collection of Russian art.

    реферат [12,0 K], добавлен 06.10.2008

  • Economic system. List by hands-on and hands-off. Types of economic systems. Market economy. Mixed economy. Planned economy. Traditional economy. Participatory economics. Changes of an economic situation in Russia. Recent economic developments.

    реферат [15,0 K], добавлен 27.05.2007

  • Humanistic character of modern formation. Reform of education in Russia the beginnings of XXI century. Results of a state policy in sphere of education during last decades. Characteristic, organizations and requirements of education system in Russia.

    реферат [24,9 K], добавлен 16.04.2011

  • Russian holidays it is the holidays of Russian people connected with widespread national traditions of their carrying out. For the state holidays the combination of what remained from the previous historical periods, and new, come to a life finding.

    реферат [18,7 K], добавлен 08.10.2009

  • 1997 year as turning point toward Russia’s economic stability. Major factors influence the onset and success of a speculative attack. Effects of the rise in interest rates. Components fueled the expectations of Russia’s impending devaluation and default.

    топик [14,7 K], добавлен 18.07.2009

  • Methodological characteristics of the adaptation process nowadays. Analysis of the industrial-economic activity, the system of management and the condition of adaptation process. Elaboration of the improving project of adaptation in the Publishing House.

    курсовая работа [36,1 K], добавлен 02.04.2008

  • The history and legal significance of "de facto marriage" in Russia. The study of value-family relations in the cell of society. Consideration of the sociological methods of investigation of the phenomenon of civil marriage in the Russian society.

    реферат [24,4 K], добавлен 13.09.2010

  • The basis of the study of economic systems of the countries of the world. Description of the administrative command system. Estimation of the market system and its implementation by the countries. Post-industrial society as a modern economic system.

    реферат [30,3 K], добавлен 24.03.2014

  • Disintegration of the USSR. Restoration of Russia. Influence of the open market. The Asian financial crisis. Increase of local manufacture. Fast lifting of economy, gross national product. Export of consumer goods. Fluctuations in the world prices.

    топик [12,4 K], добавлен 04.02.2009

Работы в архивах красиво оформлены согласно требованиям ВУЗов и содержат рисунки, диаграммы, формулы и т.д.
PPT, PPTX и PDF-файлы представлены только в архивах.
Рекомендуем скачать работу.