Science and Technology in Taiwan

As introduced by the Yearbook of the Republic of China:

In 2002, the government launched the six-year Challenge 2008 National Development Plan. This aims to make Taiwan into the best R&D location in Asia. By emphasizing innovation, research and development, in particular the encouragement of private investment in R&D, the government's goal is to raise R&D spending to 3 percent of GDP.

Specific goals and strategies outlined include attracting international R&D personnel and introduction of R&D resources from around the world, provision of US$1.43 billion in loans for R&D, cultivation of the necessary personnel locally by establishing academic institutions specializing in key areas such as IC design and digital content, and encouraging cooperation among industry, academia, and research organizations, establishing innovation and R&D centers, and promoting key research for the acquisition of core industrial technology.

Challenge 2008 emphasizes the development of a digital Taiwan. The rapid application of information and communications technologies will help develop Taiwan's knowledge-based economy, increase the competitive edge of local industries, establish effective government, and promote a high-quality information society. The ultimate goal is to transform Taiwan into the most advanced e-nation in Asia. To respond to the plan, Hewlett-Packard (HP), IBM, Dell, and Sony were among the first to establish research centers in September 2002: HP's Product Development Center and the IBM Life Sciences Center of Excellence.

The establishment of HP's product-development center in Taipei has resulted in closer coordination between designers and local manufacturers of HP notebook PCs, enabling the company to come out with up to 14 new models a year as opposed to the prior 10 per year with 60 percent greater efficiency, at half of the cost of Silicon Valley R&D operations.

In addition, Whirlpool will invest US$26.57 million over the next three years to establish a product development center in Taiwan. Siemens announced in November 2002 that it would establish a European Business Center in Taipei, which would be operational in two years. Intel Corp. dedicated its Intel Innovation Center in Taipei in August 2003 to developing wireless networking products, the first of its kind in Asia. Intel's Chief Executive Officer said Taiwan was the best choice because of its excellent innovation and design engineers.

In August 2003, Phoenix Technologies Ltd. announced plans to expand operations in Taiwan by locating research centers on the island. When complete, this will be the world's largest center devoted to core system software. The center will be staffed initially with 200 researchers, who will transfer technology to Taiwan from the company's San Jose operation.

In September 2003, Anadigics Inc., a leading global provider of wireless and broadband communications solutions, opened its applications center in Taipei's Neihu Technology Park. Also in September, Texas Instruments Group announced at the 2003 Computex Taipei-sponsored CEO Summit that, in view of the rapid growth of mobile communications in Taiwan, it will open a wireless communications center. The center will focus on creating a completely interchangeable broadband environment while integrating wireless technology into multimedia equipment involving the convergence of mobile phone, home-entertainment, and computer functions.

In October 2003, the Fabless Semiconductor Association (FSA) announced the establishment of its Asia-Pacific headquarters in Taiwan, the first regional office the international organization has established since its founding nearly 10 years ago in Dallas, Texas.

The government expects 30 more multinational companies to build R&D centers on the island in the next five years, in addition to an investment of US$2.93 billion by 42 local companies.

In mid-October 2003, the government announced the M-Taiwan Plan, or mobile-Taiwan, as part of its latest five-year economic development project. The goal of the plan is to develop wireless regional networks around Taiwan and increase applications for broadband Internet users. It is predicted that investment will be around US$11.5 billion and that the industry will be valued at US$87 billion over the next five years.

To better protect the country's science and technology development, in September 2002 the Executive Yuan proposed the National Science and Technology Protection Act. The National Science Council (NSC) will establish an S&T deliberation committee. Making public or exporting sensitive science and technology will first require permission or a report to the council. The law would apply to the chip-making, military, aeronautical engineering, computer software, and biotechnology industries.

The following figure shows Taiwan's R&D expenditures as percentage of GDP from 1992 to 2001: