© Dr.

Otto CC Lin, 2005

6CP-Rotterdam

The Six Country Programs Conference 2005

National Innovation System and the Transformation to Technology-

Based Economy: Experiences of Taiwan and the Chinese Mainland

Prof. Dr. Otto C C Lin

Hong Kong University of Science and Technology
Tsing-Tech Innovations, Ltd

22 April 2005
Rotterdam, The Netherlands
 © Dr. Otto CC Lin, 2005
Table of Contents 6CP-Rotterdam

1. Strategies on Building Economy: Role of National Innovation System

2. ITRI: PRO as Agent of Change

3. The renaissance of SMEs in Taiwan

4. Development of Science and Technology in China: Emergence of a

World Manufacturing Center

5. Interaction of Technology Businesses of Taiwan and the Mainland

6. Concluding remarks: A comparison

 © Dr. Otto CC Lin, 2005
6CP-Rotterdam

TAIWAN: ECONOMIC DEVELOPMENT

TRADE POLICY

Import Export 2nd-Import Liberalization &

Substitution Expansion Substitution Domestic Expansion

1950 1955 1965 1975 1985 1995 2000

Light Industry Heavy Chemical Strategic High Tech

Industry Industry Industry
(Capital Intensive)

INDUSTRY POLICY Technology Intensive

 Taiwan: Per Capita GDP, in USD © Dr. Otto CC Lin, 2005
6CP-Rotterdam

16000

14000

12000

10000

8000

6000

4000

2000

0
1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000
 © Dr. Otto CC Lin, 2005
6CP-Rotterdam

Strategy:
Developing Indigenous Technology Capability

1. Acquiring technology through foreign investment

2. Building Human Resources
3. Creating science and technology capacity
4. Converting research results to commercial products
 © Dr. Otto CC Lin, 2005
6CP-Rotterdam

The Innovation Process: Creating Wealth from Knowledge

(Ref: O. C. C. Lin, 1998)

Developing Industrial Technology

Applied Research
Product Development
Process Development
Pilot Production Product
Scientific
Technology Diffusion Commercialization
Research
Nurturing Business Environment
Policy / Planning / RD Funding
Taxation/Legal Systems
Infrastructure
Skilled Manpower
VC Funding / Entrepreneurship
Social Support and Stability
 © Dr. Otto CC Lin, 2005
6CP-Rotterdam
National Innovation System: the Players
(Ref. O.C.C.Lin, 2002)

Developing Industrial Technology

INSTITUTE

UNIVERSITY BUSINESS
Nurturing Business Environment INDUSTRY

GOVERNMENT
 © Dr. Otto CC Lin, 2005
6CP-Rotterdam
National Innovation System: Dynamics
(Ref. O.C.C. Lin, 2002)

Technology Development

INSTITUTE

UNIVERSITY BUSINESS

Scientific Product
Research Commercialization
GOVERNMENT
 © Dr. Otto CC Lin, 2005
6CP-Rotterdam

National Innovation System: The Role of Institute

(Ref. O.C.C. Lin, 2002)

Business
Industries
Funding

s t i tuteInsI titute
In InsInstitute ntset
Ins titu itute
titu
te

Universities
Government

Basic Applied Product & Process Pilot Technical

Focus Research Research Development Production Manufacturing
Services
 © Dr. Otto CC Lin, 2005
National Innovation System: Taiwan 6CP-Rotterdam

(Ref. O.C.C. Lin, 2002)

Business Industries
Industries
Science-based
Science-based
Industrial
Industrial
Park Park
(Host(Host
for Hi-Tech
for Hi-Tech
Companies)
Companies)
Industrial Technology Research Institute (ITRI)
Funding

ƒMicro-Electronics ƒMaterials ƒAerospace

ƒOpto-Electronics ƒEnergy ƒPollution Control ITRI
ƒComputer & ƒChemicals ƒIndustrial Safety
Communications ƒMachinery ƒIndustrial Standards

Universities
Academia
Government Sinica

Basic Applied Product & Process Pilot Technical

Focus Research Research Development Production Manufacturing
Services
 © Dr. Otto CC Lin, 2005
6CP-Rotterdam

Industrial Technology Research Institute (ITRI)

Nature
• A National Institute established by law in 1973
• A non-profit RD organization run by a BOD and a President

Mission
• To spearhead the development of high-tech industry in Taiwan

• To upgrade the competitiveness of traditional industries

 © Dr. Otto CC Lin, 2005
6CP-Rotterdam
National Thrust Objectives of Science and Technology: Taiwan

1978 1982
Energy Biotechnology
Materials Optoelectronics
Information Technology Food Processing
Industrial Automation Hepatitis B Prevention

1988
Natural Disaster Prevention
Synchrotron radiation
Ocean Science and technology
Environmental Science and Technology
 ITRI: Scope of R&D Activity © Dr. Otto CC Lin, 2005
6CP-Rotterdam

ELECTRONICS MATERIALS CHEMICALS

• VLSI Fabrication • Material Design • Chemical Engineering Process
• IC Design • Material Application • Applied Chemistry
• Flat Planel Display • Material Reliability Improvement • Speciality Chemicals and Pharmaceuticals
• Microwave Technology • New Material • Polymera and Fibers
• Electronics Packaging
COMPUTER &
COMMUNICATIONS ENERGY & RESOURCES

• Computer • Energy Conservation

• Communication • Systems Design
• Consumer Electronics • Resource Application
ITRI • Environment Engineering
OPTO-ELECTRONICS
• Optical Information MACHINERY
• Electro-Optical Components & Materials
• Optical Components & Systems • Automation
• Precision Machinery
• Power Machinery
METROLOGY INDUSTRIAL INDUSTRIAL • Precision Parts & Components
SAFETY POLLUTION
• National Measurement Standards
& HEALTH CONTROL
• Laboratory Accreditation AEROSPACE
• Industrial Quality Assurance & • Chemical Accident • Treatment & Control
Service Prevention • Waste Reduction & • Quality Assurance
• Measurement Technology & • Industrial Hygiene Reuse • Aviation System & Components
Instrumentation • Engineering Safety • Pollutant Analysis & • Inspection/Testing
Monitoring • Market & Technology
Information
 © Dr. Otto CC Lin, 2005
6CP-Rotterdam
Principles of Technology Diffusion

• Planning for technology diffusion at the start of the

technology development
• Identify potential technology recipients and the
mechanism of commercialization
• Enlist potential recipient as sponsoring or fee-paying
partner of the development project
• When pilot production is involved, plan for “strategic
withdraw” and “non-compete”
• Encourage but monitor the diffusion of project
personnel
• Transfer technology on an open and fair basis but
allowing limited privilege for project sponsors
 © Dr. Otto CC Lin, 2005
6CP-Rotterdam
Examples of Technology Development and Diffusion

A. Exploratory-- IC
Non-competitive basic technology
Major industrial impact-Government funded

B. Product Platform—Notebook personal computer

Non-competitive product technology
Multi-client consortium with government IPR matching

C. Product development—Carbon fiber composite bicycles

Existing product in advanced markets
Single client project with partial government IPR funding
 © Dr. Otto CC Lin, 2005
6CP-Rotterdam
Taiwan IC Company Family Tree (Ref: Dr. F.C. Tseng, 2002)

1980 : First IC Co.

UMC • Team
• 2μm , CMOS
• Team TSMC
• 3.5μm , CMOS
1987 : First Foundry
• 6-inch Fab.
• IC Products
• Team
• 2μm , CMOS
7μm , CMOS ERSO Winbond 1987 : First IDM
RCA /ITRI
• IC Products
(3-inch Fab.)
• Team
1974 :Technology • 0.5μm , CMOS
Transfer Vanguard 1994 :First DRAM
• 8-inch Fab.
•SRAM/DRAM
Products

IPR
TI TI-Acer 1992 :First JV DRAM
DRAM Tech.
 © Dr. Otto CC Lin, 2005
6CP-Rotterdam

Taiwan IC Outperforms WW IC
$M USD

120% Taiwan Product Production Value 18,000

Taiwan Growth Rate
Line Chart: Annual Growth Rate

16,000

Bart Chart: Taiwan IC Revenue

100%
Worldwide Growth Rate
14,000
80%
12,000
60%
10,000
40%
8,000
20%
6,000
0%
4,000
-20% 2,000

-40% 0
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
(e) (f)
Source: ITIS/IEK, Nov-2001; SIA, Jan-2002
 © Dr. Otto CC Lin, 2005
6CP-Rotterdam

Transactions and Interlinkage

IP verifications IP IP Integration

Flip Chip & CSP

Assembly &
Foundry Fabless
Test
Transaction
Design
Infrastructure
Design Services

23
Confidential-Security C Trust The Leader. Trust TSMC.
March 2002
 © Dr. Otto CC Lin, 2005
Revenues from Taiwan’s semiconductor industry 6CP-Rotterdam
US$ Billion

10
9
8 Fabless

7 Foundry
6
5
4
3
2
1
0
1995 1996 1997 1998 1999 2000 2001 Year

Source: Economic Intelligence Unit, 2003; NCTU, Taiwan

 © Dr. Otto CC Lin, 2005
Product Life Cycle 6CP-Rotterdam
Market

Introduction Growth Saturation Deterioration

Time
© Dr. Otto CC Lin, 2005
6CP-Rotterdam
 © Dr. Otto CC Lin, 2005
Taiwan’s Share of Global revenue 6CP-Rotterdam
Percentage

80
70 Fabless
Foundry
60
50
40
30

20
10
0
1995 1996 1997 1998 1999 2000 2001 Year
Source: Economic Intelligence Unit, 2003. NCTU, Taiwan
 © Dr. Otto CC Lin, 2005
6CP-Rotterdam
Notebook PC Consortium

Project Management The Team Project Leaders

Motherboard (Hitran)

Components (King Tel)

CCL EMI / Battery (Wiso)

Mechanical Design (Tek Star)

ITRI CCL TEAM A
Software (Cal Roc)
Testing (CCL)

PARTNERS Reliability (CCL)

System Integration (CCL)
Promotion (TEAMA)
 © Dr. Otto CC Lin, 2005
6CP-Rotterdam
NOTEBOOK PC PRODUCTION
25000
22262
22500
19238
20000
17500 Worldwide 14453 15543
SHIPMENT, KPCS

15000 14661
11807
12500
8919
10000 11073
7500 5161
3547 4318
5000 2824 6088
2500 1291
2592
4625 Taiwan
494 861 3781
22
0 *

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Reference: MIC / IDC
* Estimated for 2000 Year
 © Dr. Otto CC Lin, 2005
6CP-Rotterdam

Taiwan’s Major IT H/W Products

Unit：US$M

Growth Rate Market Share

Product 2000 2001 2002 2003(f)
(03’/02’ ) (2002)
Notebook PC 13,553 12,239 13,922 15,008 7.8% 61%
Desktop PC 7,793 6,866 6,933 7,262 4.7% 23%
LCD Monitor 1,886 3,131 5,646 7,352 30.2% 61%
Motherboard 5,674 5,647 5,636 6,189 9.8% 75%
CDT Monitor 8,344 5,336 4,544 4,009 -11.8% 51%
CD/DVD/RW 2,304 2,107 3,146 2,720 -13.5% 45%
Server 798 1,300 1,324 1,438 8.6% 30%
Digital Still Camera 671 838 1,003 1,314 31.0% 39%
Projector - 257 285 385 35.1% 9%

Source：MIC/III, 2002/12
 Taiwan Production of Selected Electronics
© Dr. Otto CC Lin, 2005
6CP-Rotterdam
Products
NT $ M

180,000
160,000
Monitors
140,000
120,000
100,000
Motherboards
80,000
Desktop
60,000 PCs
40,000
20,000
Keyboards Mouse
0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Source: Economic Intelleigence Unit, May 2003; MOEA-ROC

 © Dr. Otto CC Lin, 2005
Taiwan’s production of selected 6CP-Rotterdam

electronics manufactures
450,000
(NT$m)

400,000 Portable
computers
350,000

300,000
LCDs
250,000
Foundry
wafers
200,000

150,000
Interface
100,000 cards
50,000
Modems
0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Source: Economic Intelligence Unit, 2003, MOEA-ROC

 © Dr. Otto CC Lin, 2005
6CP-Rotterdam

Impacts of ITRI Technology

II. Upgrade Existing / Traditional Industry

• Design • Sporting: Bicycles, Tennis rackets, Golf clubs

• Material Î • Plated Plastics
• Manufacturing • Machine Tools / Parts
• Quality - EHS • Fashion Fabrics
• Pharmaceuticals
• Green processes
© Dr. Otto CC Lin, 2005
6CP-Rotterdam

30
© Dr. Otto CC Lin, 2005
6CP-Rotterdam

31
 © Dr. Otto CC Lin, 2005
6CP-Rotterdam

Composite Materials Technology

CAD Polymer Fibre

Design Matrix Reinforcement Processing

New
Product

Metal Materials Fabrication Non- Performance

Parts Joining Destructive Testing
Evaluation
 © Dr. Otto CC Lin, 2005
ITRI: Technology Output 6CP-Rotterdam

Item 1989 1992 1995 1998

Technology Technologies 45 143 280 340
Transferred to Companies 62 217 418 510
Industry

Services Contracts Number 236 419 1,004 1,050

General Services to Companies 10,513 21,943 27,061 28,000

Industry
Patents Granted Number 88 274 381 560

Technology Cases 405 643 880 957

Conferences and Attendees 19,706 40,150 59,492 69,000
Training Programs
 © Dr. Otto CC Lin, 2005
6CP-Rotterdam
National R&D Benefit Cycle (Ref. O.C.C. Lin, 2002)

Government $$$
$ Tax

Employment

Ministries
Business
Agencies
Royalty

Employment Tax

Institutes, Labs Royalty

Industry
Universities
Technology
 © Dr. Otto CC Lin, 2005
6CP-Rotterdam

ITRI: Contributions to Taiwan

1. Establishing new high-tech industries

2. Upgrading traditional industries
3. Developing human capital
4. Protecting the environment &
increasing industry safety
 © Dr. Otto CC Lin, 2005
6CP-Rotterdam
Taiwan ICT Industry Statistics
47.0 46.6
50.0 42.6
Unit：US$ B
40.0
11.0 2000 2001 2002
30.0
22.8
15.5 18
20.0

10.0

6.0

5.0 4.1
4.1 4.1
3.9 3.6
4.0 3.7 3.5
2.8 3.0
3.0 2.6
1.7
2.0
1.2
1.0

0.0
Information Software and Communication LCD Panel IC Information
Appliance Service Hardware

Source： MIC/III, OCIID/MOEA, Nov 2002

Taiwan: Growth of Technology Products Export (1985-2004)
© Dr. Otto CC Lin, 2005
6CP-Rotterdam

USD, 100M
1600 90%

1400
80%
1200
70%
1000
% of Total Export
800 60%

600
Hi-Tech Export 50%
400
40%
200

0 30%
1985 1987 1989 1991 1993 1995 1997 1999 2001 2003
Year
 © Dr. Otto CC Lin, 2005
6CP-Rotterdam
Shares of Taiwan’s Manufacturing Enterprises 1971-1996 (Unit: %)
Employment size (persons) 1-99 100-499 >500
By number of enterprises
1971 95.43 3.82 0.75
1976 95.26 4.10 0.64
1981 95.93 3.54 0.53
1986 96.03 3.54 0.43
1991 97.58 2.12 0.30
1996 98.07 1.67 0.26
By persons engaged
1971 35.62 28.25 36.13
1976 38.55 30.20 31.25
1981 41.66 28.80 29.54
1986 47.86 28.09 24.05
1991 56.48 21.30 22.22
1996 57.94 19.21 22.85
By value added
1971 21.59 20.52 57.89
1976 28.25 27.85 43.91
1981 30.87 26.40 42.73
1986 35.01 26.73 38.26
1991 40.94 21.79 37.28
1996 41.35 19.63 39.02
Data Source: Industrial & Commercial census, Executive Yuan, Taiwan, ROC, 1954-1996
Reference: M-W Hu, Futures 35 (2003) 379-392
Science and Technology Development of China: Goals©6CP-Rotterdam
Dr. Otto CC Lin, 2005

(Ref. O. C. C. Lin, 1999)

I. Establishing R&D Infrastructure and Exploring the Frontiers of Science

II. Developing High and New Technology Industry

III. Strengthening the National Economic and Social Developments

Science and Technology Development of China: Programs
© Dr. Otto CC Lin, 2005
6CP-Rotterdam
(Ref. O. C. C. Lin, 1999)

The “Pandeng” Prograom-1992

National Science Foundation-1994
Nat’l key Laboratories, Nat’l Science Research Center-1996

The 863 Program-1996

The “Torch” Program-1988
National High and New Technology
Industry Development Zone-1988

National Key S/T (Gong Guan) Program -1982

National Engineering Research Center-1990
National Engineering Technology Research Center-1991
Industrial Technology Center-1991
Productivity Promotion Center-1995
The “Spark” Program-1997
 © Dr. Otto CC Lin, 2005
Science and Technology Development of China: Focus
6CP-Rotterdam
(Ref. O. C. C. Lin, 1999)

Physics, Chemistry, Mathematics, Materials, Condensed Matters

Cell-Molecular Biology, Neural Science, Computer Science, Nano Science,
Astrophysics, Agri Chem, Ores & Minerals, Molecular Engineering
Environmental Control Processes, Life Sciences, Earth Science

Biotechnology Automation Technology

Space Technology Energy Technology
Information Technology Advanced materials
Laser Technology Marine Technology

Agriculture (crop, irrigation, pesticides, fertilizer,..)

Infrastructure (water, power, tele-communication)
Energy (electricity, coal, petro chemicals, nuclear,…)
Manufacturing (CAD, CAM, CIM, automation, productivity)
Environmental (water, river, forestry, land, ocean, air, sea)
Pillar Industry (automobile, textile, steel, minerals, pharmaceuticals…)
Transportation (rail, bus, air)
Science and Technology Development of China: Focus©6CP-Rotterdam
Post
Dr. Otto 1996-
CC Lin, 2005

(Ref. O. C. C. Lin, 1999)

“973” Programs—National Objectives

Agriculture, Energy, Information, Materials
Resources and Environment, Population and Health
Frontier Basic Sciences

“S-863” Programs: 6 Technology + 9 Industry

Focus on Innovation and Research Commercialization
Technology: Bio-, IT, Materials, Energy, Space, Ocean
Industry: Bio-engineering, Biomedical, Software
Optoelectronics, Intelligent Machinery
Superconductor, Solar, Space, Ocean

Agriculture (crop, irrigation, pesticides, fertilizer,..)

Infrastructure (water, power, tele-communication)
Energy (electricity, coal, petro chemicals, nuclear,…)
Manufacturing (CAD, CAM, CIM, automation, productivity)
Environmental (water, river, forestry, land, ocean, air, sea)
Pillar Industry (automobile, textile, steel, minerals, pharmaceuticals…)
Transportation (rail, bus, air)
 © Dr. Otto CC Lin, 2005
6CP-Rotterdam

National Innovation System: China (Ref. O. C. C. Lin, 2003)

Business
Industries
(SOE, TVE, JV, etc)
Funding

Technology-Economic Zones,
Science Parks

Ministry and Provincial Institutes / Industries

National Academy of Science, Institutes, Laboratories

Universities
Government

Basic Applied Product & Process Pilot Technical

Focus Research Research Development Production Manufacturing
Services
 © Dr. Otto CC Lin, 2005
6CP-Rotterdam

National Innovation System: China ca 2002 (Ref. O. C. C. Lin, 2003)

Business
Industries
(SOE, TVE, JV, etc)
Funding

Technology-Economic Zones,
Science Parks
Ministry and Provincial
Ministry and Provincial Institutes / Industries
Institutes / Industries

National
NationalAcademy
Academy ofofScience,
Science, Institutes, Laboratories
Institutes, Laboratories, Universities
Universities
Government

Basic Applied Product & Process Pilot Technical

Focus Research Research Development Production Manufacturing
Services
 © Dr. Otto CC Lin, 2005
6CP-Rotterdam

Changing composition of China exports 1980 - 2000

2500
Value, 100 M USD

2000
Primary Goods
1500 Manufactured Goods
1000

500

0
80

82

84

86

88

90

92

94

96

98

00
19

19

19

19

19

19

19

19

19

19

20
Year
 © Dr. Otto CC Lin, 2005
6CP-Rotterdam

Reversed Roles of China Manufacturing

2500
Value, 100M USD

2000
China Exports
1500 China Imports
1000

500

0
1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000
Year
 China: Exports of Hi-Tech Products (1991 - 2003) © Dr. Otto CC Lin, 2005
Exports, in USD 100M Exports, as % Total Exports
6CP-Rotterdam
1200 30.00%

1000 25.00%

800 20.00%
High Tech Exports
as % total exports

600 15.00%

400 10.00%
High Tech Exports

200 5.00%

0 0.00%
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
 © Dr. Otto CC Lin, 2005
6CP-Rotterdam
Investment of Taiwan Industry in the Chinese Mainland

4000 12
Total amount invested ($M)

3500 10
3000

% of Total FDI
8
2500
2000 6
1500 4
1000
2
500
0 0
80

90

91

92

93

94

95

96

97

98

99

00

01
19

19

19

19

19

19

19

19

19

19

19

20

20
Year

$ invested % of total FDI

 © Dr. Otto CC Lin, 2005
Foreign Direct Investment in China by Sources 6CP-Rotterdam

Unit: 100M USD

Hong Kong / USA Japan British Singapore Taiwan Germany Korea
Macau Virgin
Islands
1998 189.3 38.98 34.0 40.3 34.0 29.2 7.4 18.0
(%) (41.64) (8.57) (7.48) (8.87) (7.49) (6.41) (1.62) (3.97)
1999 166.7 42.2 29.7 26.6 26.4 26.0 13.7 9.4
(%) (41.35) (10.46) (7.37) (6.59) (6.55) (6.45) (3.41) (2.34)
2000 158.5 43.8 29.2 38.3 21.7 23.0 10.4 14.9
(%) (38.92) (10.77) (7.16) (9.41) (5.34) (5.64) (2.56) (3.66)
2001 170.4 44.3 43.5 50.4 21.4 29.8 12.1 21.5
(%) (36.35) (9.46) (9.28) (10.76) (4.57) (6.36) (2.59) (4.59)
2002 83.6 24.5 20.5 27.0 11.7 19.2 6.1 13.0
(Jan-Jun) (34.0) (9.96) (8.34) (10.99) (4.76) (7.81) (2.48) (5.29)
(%)
Source: China Statistics Annual Reports, MFT, Beijing
Economic Trade Monthly between the Straits, MAC, Taipei
 © Dr. Otto CC Lin, 2005
6CP-Rotterdam
Foreign Direct Investment in China by types of Business
Unit: M USD
Agriculture Mfg Electrical, Building Transport & Retail, Sales Real Estate Social
& Fisheries industry Gas, Construction Commu- & Restaurant Services
&Water nication
1998 623.8 25582.4 3102.8 2064.2 1645.1 1181.5 6410.1 2963.2
(%) (1.37) (56.27) (6.82) (4.54) (3.62) (2.60) (14.10) (6.52)
1999 710.2 22603.3 3702.7 916.6 1551.1 965.1 5588.3 2550.7
(%) (1.76) (56.06) (9.18) (2.27) (3.85) (2.39) (13.86) (6.33)
2000 675.9 25844.2 2242.1 905.4 1011.9 857.8 4657.5 2185.4
(%) (1.66) (63.48) (5.51) (2.22) (2.49) (2.11) (11.44) (5.37)
2001 898.7 30907.5 2272.8 806.7 908.9 1168.8 5136.6 2594.8
(%) (1.92) (65.93) (4.85) (1.72) (1.94) (2.49) (10.96) (5.54)
2002 457.6 16796.0 830.9 414.5 455.5 426.1 257.5 1316.8
(Jan-Jun) (1.86) (68.24) (3.38) (1.69) (1.85) (1.73) (10.48) (5.36)
(%)
Source: China Statistics Annual Reports, MFT, Beijing
Economic Trade Monthly between the Straits, MAC, Taipei
 一、中國經濟的崛起 © Dr. Otto CC Lin, 2005
6CP-Rotterdam

China: Emerging Manufacturing Center of the World (2003)

の
～世界に占める中国製品の生産量シェア～
0% 10% 20% 30% 40% 50% 60%

DVD Player 54.1%

Motorcycle 49.5%

A/C 43.7%

Desktop PC 29.6%

Cell Phone 27.8%

Color TV 26.5%

DSC 13.4%

Laptop PC 11.7%
資料來源：大和證券有價證券部根據各種報導作成
 © Dr. Otto CC Lin, 2005
China-based production as a % of Taiwanese 6CP-Rotterdam
electronic firms’ total production

100
90
2001 2002 2003
80
70
60
50
40
30
20
10
0
Desktop PCs Notebook Motherboards Servers Digital still Projectors Optical disk
PCs cameras drives

Source: Economic Intelligence Unit, 2003; MIC, Taiwan

 © Dr. Otto CC Lin, 2005
6CP-Rotterdam
Competitive Strategy of “Global Chinese, Inc”
•Global Market
•Taiwan Design
•Mainland Manufacture

鴻海、廣達、仁寶、英業達 Dell, IBM, HP, Gateway, NEC,

Sony, Fujitsu, Intel Hitachi,
華宇，緯創、光寶、台達
Sharp, Motorola, Nokia, Siemens,
群光、源興、神達、明碁 Ericsson, Microsoft, etc.
大眾、精英、華碩、技嘉 TSMC, UMC, Acer,TCL, Haier,
微星、華寶、大霸、華冠. Legend…
 © Dr. Otto CC Lin, 2005
6CP-Rotterdam
A Scored of Innovation: Rising Stars in the Asia Pacific (2003)
South
USA China Singapore Taiwan Hong Kong India
Korea
Semiconductor, Mechanical Broadband, grid VLSI Digital displays, Finance, software, Embedded
software, telecom, engineering, computing, biotech, Laptop PCs, memory chips, entertainment, software,
materials, computer, handheld devices, multi media computer games, Bio-medical drugs, business
Strengths biotechnology, graphics, computer peripherals devices, network wireless telecom, software, chip
aerospace, handwriting equipment broadband design
automation, internet recognition

GDP (US$billion) 10,896 1,408 91 286 605 157 547

GDP per capita

(US$) 37,483 1,091 21,825 12,657 12,638 23,322 522

US Patents 88,000 366 438 5,300 3,952 988 354

R&D Spending %
of GDP 2.7% 1.2% 2.2% 2.3% 2.9% 0.56% 1%

Science &
Engineering 400,000 337,000 5,600 49,000 97,000 14,900 316,000
Grads.**

** Total annual new bachelor’s degrees or higher Source: OECD, National Science Foundation, IMD, ITRI
A Comparison of Science-Technology Development: © Dr. Otto CC Lin, 2005
6CP-Rotterdam
Taiwan and the Chinese Mainland
Taiwan
* The national innovation system has laid the foundation to the transformation
of Taiwan to a technology based economy during 1975-2000.
* The major benefit of national R&D was recognized as providing social return.
* The national thrust programs were planed and supported by the government;
execution was by the institutes, ITRI primarily, and gradually, the private
industry.
* ITRI developed driver technologies, in both new and traditional industrial
fields, and transferred results to, mainly, SME’s for commercialization.
* Technology SME’s have taken the leadership role of Taiwan economy
and expedited the movement of technology businesses to the Mainland.
* University maintains its major functions on teaching and research.
A Comparison of Science-Technology Development:© Dr. Otto CC Lin, 2005
6CP-Rotterdam
Taiwan and the Chinese Mainland (continued)

The Chinese Mainland

* The government planned and directed most R&D and exerted strong
influence on the research commercialization process.
* The government maintained a strong organization structure to promote
national S/T efforts.
* Significant economic progress has been made from R&D since mid-1990.
* China is emerging to become a manufacturing center of the world.
* All players of the national innovation system have shown interest in pursuing
private returns, causing some duplication and in-efficiency
* The mainstream of industry is state-owned plus state-participated.
* The national innovation system needs review to define positioning and
responsibilities of the players and to attain more efficiency in technology
transfer and incubation mechanisms.
 © Dr. Otto CC Lin, 2005
6CP-Rotterdam

Thank You!
Prof. Otto C C Lin
Hong Kong University of Science and Technology

occlin@ust.hk