Innovation Policies for the 21st Century Report of a Symposium (2007) / Chapter Skim
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Panel III: New Models in Japan, Taiwan, and China
Panel III: New Models in Japan, Taiwan, and China
Pages 111-140
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From page 111... ...
Marburger's luncheon address, she had been struck by how little was said about industry. In contrast, she noted, a consideration of China's technology policy always revolves around an industry; there, the theme might be "technology policy and how it develops the telecommunications industry," or, in the case of its neighbor, "the technology policy in Taiwan and how it developed the computer industry." These countries would, of course, be much more focused on industry because they do not yet have industry fully in place and so were catching up.
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From page 112... ...
Like Finland, he said, Taiwan is a country that is small in population and area whose resources are sufficiently limited such that they must be used with a maximum of efficiency and effectiveness. His presentation comprised five parts: • a brief introduction to the transformation of Taiwan's economy over the previous 50 years; • a discussion of the major elements in Taiwan's industrial evolution; • a brief introduction to ITRI, covering the role it had played in that evolution and the nature of its relationship with Taiwan's industries; • a description of the opportunities before Taiwan; and • a very brief conclusion.
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From page 113... ...
Similarly, while labor-intensive industry characterized industrial growth in the late 1940s through the 1950s and 1960s, followed by capital-intensive industry the 1970s and 1980s and technology-intensive industry the 1980s and early 1990s, the knowledge-intensive industry that came onto the scene in the mid-1990s is expected to expand further in the future. Describing the economic evolution in Taiwan, Dr.
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From page 114... ...
Major Elements in Taiwan's Industrial Evolution Behind Taiwan's industrial evolution, in ITRI's analysis, were four major elements: government policies; industrial infrastructure; foreign investment; and augmentation of technology.
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From page 115... ...
Stressing certain points along the continuum, he said that in the early 1960s a duty-free export zone for manufacturing was established; around 1980, the Hsinchu Science Park was developed, followed in the late 1990s by the Southern Taiwan Science Park and the Southern Taiwan Innovative Park. Also reflecting government policy, a Food Industry Research and Development Institute was established as that industry developed in the early 1960s; ITRI's founding followed in 1973.
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From page 116... ...
service industries had risen significantlyfig 17 since 1980, as the sector accounted for one-quarter of foreign investment in the 1980s and 44.6 percent in the 1990s. Augmentation of Technology There were three different paths to the augmentation of Taiwan's technology, Dr.
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From page 117... ...
fig 18 development, and implementation, but also to facilitate the creation of new industries. Besides ITRI, which is the largest of these industrial R&D organizations, he named the Information Industry Institute, Food Industry Research Institute, Textile Industry Research Center, and Bicycle R&D Center from this category.
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From page 118... ...
As more than 90 percent of Taiwanese companies fall into the small and medium-sized categories, many lack the funding to do research independently, and ITRI helps them meet their needs for both knowledge-based services and research and technology development. ITRI links science parks, universities, and companies throughout Taiwan.
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From page 119... ...
For the future, Taiwan will focus on new value creation through innovation to upgrade industry, while also trying to unify and align regional resources. The aim is to form productive clusters and facilitate the development of new service-sector industries by implementing innovative business models.
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From page 120... ...
Amsden's question about how firms are chosen for admission to Hsinchu Science Park, asked whether technology areas were chosen as well. She noted that Taiwanese innovation policy appeared to focus on promising technology areas.
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From page 121... ...
JAPANESE TECHNOLOGy POLICy: EVOLUTION AND CURRENT INITIATIVES Daid K Kahaner Asian Technology Information Program Dr.
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From page 122... ...
The goal of the first Basic Plan, which went into effect in 1996 and thus predated CSTP's creation, was to double government spending on R&D. The second Basic Plan, whose budget was set at $212 billion over 5 years, was a part of an effort to double the amount available for competitive funding through the end of 2005.
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From page 123... ...
Another locus of collaboration, which is to receive greater emphasis in the third Basic Plan, is situated between the national government and local governments -- once more, "quite consistent" with Dr. Chu's description of Taiwan.
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From page 124... ...
There is also an effort to develop "Silicon Valleys" around the universities in keeping with the concept of local or regional clusters, as seen in Taiwan. In a development dating back only 5 years, each Japanese university has established a technology-licensing office; technology management as a discipline is also now receiving attention at a level unprecedented at Japanese universities.
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From page 125... ...
Under the most recent Basic Plan, Japan's ministries are being encouraged to collaborate on work taking place within eight specific R&D groupings. These
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Recent research thrusts for METI are fuel cells, robotics, health, IT in the home, energy, and nanotechnology, the last three of which would, Dr. Kahaner predicted, be crucial in Taiwan and Korea as well.
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From page 127... ...
Kahaner suggested, is not so much the robot as the development of capabilities associated with its attributes: power-source technology; recognition technology, including voice, tactile, vision, and translation; activator technology, pertaining to the robot's mechanics; structure, of possible relevance for prosthesis technology;
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From page 128... ...
science community," Dr Kahaner said. Concluding, he said that Japan will place emphasis in the future on competition within the country for research money; collaboration among Japanese organizations and the associated coordination of research efforts; ways of being more efficient and of measuring efficiency; and increasing internationalization with respect to human talent.12 Discussion Opening the question period, Jim Mallos of Heliakon observed that the point of all innovation was to make new products and that, in the 21st century, "it won't do us any good to come up with new products that are like the failed competitors of the iPod: perfectly good, but not quite magical in the way they put together design and technology." His question was whether Japan's esthetic culture and skill at miniaturization positions it as well as any nation to succeed at modern product design.
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From page 129... ...
NEW PARADIGMS FOR PARTNERSHIPS: CHINA GROWS A SEMICONDUCTOR INDUSTRy Thomas R Howell Dewey Ballantine Referring to Dr.
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From page 130... ...
as a partner with industry. Rather than making decisions it encourages the formation of enterprises, in some cases spinning them off from government research institutes.
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From page 131... ...
Major financial incentives to None Major tax benefits individuals Government controls Yes No enterprise decision making Government promotion of No Yes venture capital sector FIGURE 23 China 1994, Taiwan 2000. fig 23 mental reappraisal of what it was doing and "essentially decided to jettison [its]
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From page 132... ...
Major financial incentives to None Major tax benefits Major tax benefits individuals Government controls Yes No No enterprise decision making Government promotion of No Yes Yes venture capital sector FIGURE 24 Microelectronics: China embraces Taiwan's model. fig 24 Many of them were implemented with the assistance of Taiwanese advisers; for example, one of the leaders who had set up Hsinchu Park, Irving Ho, acted as a consultant on the industrial parks that had been built on the Mainland in the previous 5 years.
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From page 133... ...
Taiwanese investors, seeing that they might be shut out of China's growing market unless they invested there, rushed across the Strait as a result. Although the VAT measure was subsequently withdrawn, that Mainland investment has remained -- providing an example of China's use of its market to leverage inward foreign investment.
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From page 134... ...
Japanese investors; while "not failures," these ventures did not "chase the state of the art" either. However, the new-model China-based semiconductor ventures more closely resemble a typical multinational corporation with some government investment, but basically backed by a diverse array of stockholders, including foreign investors.
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From page 135... ...
. by an administrative committee appointed by the municipal government." Taking a first step away from this, the Chinese began setting up development corporations that negotiated with investors and tried to start their own businesses.
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From page 136... ...
the "gravitational pull" that increasingly draws all levels of semiconductor industry activity to China. As the bulk of wafer-fab investment moves to China -- and projections indicate that China will boast some 30 new fabs in the ensuing 3 years compared to 6 new fabs in the United States -- science and engineering graduates from
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From page 137... ...
Amsden cautioned that it would create the wrong impression to say that foreign firms are important in all Chinese industries. One of the Chinese government's major policies is to create nationally owned firms, private or not, in virtually every major industry, including semiconductors.
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From page 138... ...
Key Questions for Japan's Next Five-year Plan After briefly providing background information on Japan's Basic Science and Technology Plan, Mr. Shindo highlighted a number of possible key questions regarding the third Basic Plan: • How to develop and maintain S&T human resources?
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From page 139... ...
The questions center on how to ensure global competitiveness, how to respond to the demands of society, and how to encourage regional economic development. The potential solutions are to identify cutting-edge areas of industry that promise strong global competitiveness industrial areas that can meet market needs arising from changes to society, and industry clusters that can support regional revival.
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From page 140... ...
Howell said that labor costs for semiconductor manufacturing are about 40 to 50 percent lower on the Mainland and that the cost of water is lower as well. But these are very small components of semiconductor manufacturing costs; the main expenses are equipment and other items whose costs are equivalent or close to equivalent in the two locations and were in some cases lower in Taiwan.
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