| Title | Institutional Analysis on Statute for Industrial Innovation |
| Dept | Transportation Operations and Management Division |
| Year | 2011 |
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| Summary | In the years following its implementation in 1991, the Statute for Upgrading Industries succeeded in bringing about industrial upgrading and industrial clusters through the provision of tax incentives. The Chung-Hua Institution for Economic Research indicates that in the four-year period of 2004 through 2007 the Statute for Upgrading Industries added NT$497.2 billion to Taiwan’s GDP, generated 141,000 new jobs, induced approximately NT$244.7 billion in investment, and brought in additional tax revenues of NT$20.5 billion. With the rise of newly industrialized economies and the impact of globalization, however, came an urgent need to readjust Taiwan’s past development strategy of manufacturing, OEM production, and cost cutting. The development at the present stage calls for a switch from capital-intensive to technology-intensive production, and development toward knowledge-intensive industries. The only way to enhance the added value of industry and lay down a foundation for the next wave of industrial growth is by strengthening innovation and R&D activity and developing in the direction of the brands, saleschannels, and design activity at the two ends of the value chain. At this key point in industrial transformation, the Statute for Industrial Innovation constitutes a powerful policy tool for leading future economic development. The biggest differences between the Statute for Industrial Innovation and the Statute for Upgrading Industries is the emphasis that the Statute for Industrial Innovation places on diversified industrial development and its provision of incentives without regard to business size. The Statute for Industrial Innovation is critical to the future development of Taiwan’s economy, with a content that provides measures for the circulation and use of intangible assets, financial support, and sustainable. The Statute also makes use of such tools as subsidies, guidance, and low-interest loans to encourage investment in R&D and innovation with the aim of stimulating industrial transformation and strengthening national competitiveness. |
| Post date | 2011/07/25 |
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