Reorganizing the Industrial Technology Research and Development System to Promote an Innovation-Based Economy

Reorganizing the Industrial Technology Research and Development System to Promote an Innovation-Based Economy

While Taiwan has proved adept at turning technological development into industrial development, as demonstrated by its emergence as a world-class high-tech manufacturing center, it has fallen short in converting scientific research into technological development. This indicates a need for better linkage between scientific research and technological development, through closer and more efficient interaction between industry and academia. Since 1998, the Ministry of Economic Affairs (MOEA) has pushed ahead with a program to promote R&D in innovative industrial technology, focusing on deregulation and institutional reform, with the Industrial Technology Research Institute (ITRI) leading efforts to foster an industrial culture conducive to such purpose. This paper describes Taiwan’s achievements in developing advanced manufacturing capacity, and assesses the need for improvement in the interface between industry and university research programs. It examines the current status of the reorganization of Taiwan’s industrial R&D system, and considers further steps that need to be taken in order to promote the development of an innovation-based economy.