Superior Innovation Capability

Taiwan has advantages for the development of "Knowledge-Intensive Industries". Taiwan's potential in science and technology is growing rapidly, which plays a key role in leading the transformation of Taiwan economy. According to the IMD's World Competitiveness Yearbook 2012, Taiwan scored 7.67 in the entrepreneurship category on a scale of one to ten. That is, Taiwan has the world's best entrepreneurial society, up three places from last year and the best ranking the nation has received since 2001, indicating Taiwan's entrepreneurs has outstanding performance on coping ability while suffering from the financial crisis. Entrepreneurship could be a reflection of business creativity, innovation and value of creation, which also determines a country's economic vitality and key competitiveness. There would be a positive correlation between entrepreneurship ranking on the IMD report and the domestic investment rate.

Taiwan's industries are transforming from efficient mass production (supply chain) to living application innovation (product/system/service). The manufacturing and services industries will be the focused areas, which include the front end R&D services industry and the back end financial and transportation services industries. The services industry, including "service-oriented manufacturing" and "services outsourcing", is being actively developed and innovated. In particular, the health care industry and alternative energy industry both have good opportunities to enter China's market.

R&D and innovation represent the world's commitments on creation of new knowledge and exploration of research results. Taiwan ranks 6th in the world on EIU's Global Innovation Index 2009-2013, behind only to Japan, Switzerland, Finland, Germany and the US, and number one among newly industrialized countries. According to the Internet Economy Outlook 2012 by the Organization for Economic Cooperation and Development (OECD), there are only Finland, Taiwan, Israel, and South Korean which spent on ICT research and development exceed 1 percent of gross domestic product in 2011. The study also indicates investment in research and development represents the capability of innovation of one country and the amount of R&D expenditure of businessess has huge influence on one economy's growth. Therefore, the data shows Taiwan plays an important role on the resource chain of the international innovation and leresearch and development and lends itself well to becoming a knowledge hub for Asia as well as a global innovation corridor.

In 2010, on the number of Approved Invention Patents, Taiwan applied 8,243 cases in US, which ranked 5th in the world, trailing behind the United States, Japan, Germany, and South Korea. In terms of relative scale, Taiwan had 353 approved inventive patents in the United States for every million people, which ranked number one in the world, far surpassing the U.S. and Japan. The high and rapid growth in strength of Taiwan's innovation leads itself a position of competitive advantageous in the world.

Moreover, Taiwan's performances were outstanding in the world's invention award competitions: it was in number one position at the 2012 "International Exhibition of Inventions of Geneva". The Taiwan team won 45 gold, 52 silver, 25 bronze medals, and eight special prizes, successfully defending its championship title in the awards/entries ratio. Besides, in Feb. 2012, three products from Taiwan received iF gold awards from German-based International Forum Feb. 10 in recognition of their outstanding design concepts. Last, Taiwan designs won 48 of the 263 red dot prizes at the Red Dot Design Award 2012 competition in Germany this year, including six of the 46 Best of the Best awards. It indicates that invention, design and innovation have become valuable in Taiwan Society.

Source from: Invest in Taiwan

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