Taiwan Today

Taiwan ranks No. 13 among 131 economies worldwide in terms of innovation capacity, according to a new report on Innovation for Development released Nov. 18. The study, which was produced by the German-based European Business School, found that Taiwan trails only Singapore in Asia, trumping Japan, Hong Kong, South Korea and mainland China. Sweden and Finland finished one-two respectively in the global stakes. Augusto Lopez-Claros, former chief economist of the World Economic Forum and editor of the report, said innovation is emerging as a leading factor in building economic growth and prosperity. “The traditional resources of national power and influence are now giving way.” Based on an EBS index model, the report measures a wide array of factors, policies and institutions that contribute to a country’s ability to drive innovation. These include institutional environment, human capital endowment, social inclusion, regulatory and legal frameworks, innovation infrastructure, research and development, and the adoption and use of information and communication technologies. According to the study, Taiwan’s success is due to implementing measures that have enabled high growth. These include capitalizing on the benefits of international trade and investment, acquiring new technologies, and avoiding errors that have dragged down development in other countries. Taiwan has transformed itself from an agricultural society into a global technology powerhouse and world leader in the production of ICT equipment. The island also boasts an admirable array of supporting infrastructure such as science parks, public and private research institutions and think tanks, the report read. The authors pointed out that to enhance Taiwan’s global competitiveness, new ways must be found to cooperate with mainland China, an emerging technology power with a much lower cost structure. (SFC-JSM)