Industrial Upgrading through Low-Cost and Fast Innovation—Taiwan's Experience


Dieter Ernst

East-West Center Working Papers, Economics Series, No. 133


Honolulu: East-West Center

Publication Date: September 2013
Binding: paper
Pages: 20
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This paper examines the forces that drive Taiwan's new strategy of "Upgrading through Low-Cost and Fast Innovation." The first section highlights characteristics of Taiwan's traditional "Global Factory" innovation model and examines the role of innovation policy in that model. Section 2 reviews fundamental weaknesses that define the requirements of Taiwan's new innovation strategy. Section 3 explores Taiwan's new strategy of "low-cost and fast innovation through domestic and global innovation networks." Finally, section 4 examines the role of government and key policies and initiatives in the IT industry.