Taiwan has been a long-time leader in electronics and life sciences.
However, over the last
decade, it has become a world leader in innovation across a diverse range of industries. Since
2007, Taiwan successfully transformed from being one of the world's largest product
manufacturers to being one of its leading innovators with high technology-intensive industries.
Taiwan is an example of how a country can use the Triple Helix Model to solve economic
problems which have been successful in the creation of Taiwan's high-tech industry. It has
helped the country overcome problems that had been before 2007 such as brain drain. Taiwan's
innovation policy, building strategy and overall development are to strategically use the industry
to unlock its potential for economic growth. Also, the country has long-term sustainability and is
a major exporter of the world's high technology products. These changes are resulting in a more
open, dynamic, and steady economic growth which will bring about greater job opportunities for
people and continue Taiwan to transform from an economy based on manufacturing to an
advanced knowledge-based economy. Taiwan’s high-tech industry is relatively small in the scale
of globalization, but it has been very successful in creating large amounts of employment. This
can be attributed to how the island nation has been able to effectively transform itself from a
value capturing economy to one of the world's leading innovators. The report explains how
Taiwan has been able to build a technology innovation system consisting of three pillars:
government, academia, and the industry. These three pillars have been able to successfully
collaborate to ensure that knowledge is mutualized, and that Taiwan's technologies are not lost
on foreign firms but rather shared for mutual benefit between industries. For Taiwan to transform
from being one of the largest manufacturers in the world to being a leading innovator and
exporter of internationally competitive high-tech products, the country had to focus on using
knowledge spillovers from manufacturing industries into its core innovative high-tech sectors
such as semiconductors and mobile phones. This strategy was successful in creating high-tech
industries like mobile phones and semiconductors, which have made Taiwan an important part of
the global economy. The report stresses that Taiwan's longterm future will lie not only in high-
tech industries but rather in building regional industry clusters based on knowledge spillovers
and spinoffs from manufacturing and research.
Taiwan is the powerhouse of semiconductors
At the foundation of today’s technology, semiconductors have been regarded as the “new oil” of
the 21st century. Omnipresent in our daily life (ranging from mobile phones, to cars and fighter
jets), the semiconductor industry is becoming a crucial element of national security, moving
beyond matters related to global trade. Taiwan holds a near monopoly in this security-related
product. Responsible for 63% of global semiconductor market share, Taiwan lies at the heart of
the semiconductor industry, reaching an output value of 3 trillion NTD in 2020 (107.53 billion
USD).
As a world leader in semiconductor manufacturing, the Taiwan Semiconductor Manufacturing
Company (TSMC) accounts for 54% of the global semiconductor market share.So far, the major
clients of TSMC, such as China and the US, do not have the capacity to produce their own
advanced semiconductors. As a result, Taiwan has become an indispensable link in the global
production of semiconductors.
Taiwan changed from a traditional agriculture society into an industrialized modern country
within roughly one century. This fast development was regarded as a model for developing
countries. Taiwan together with Hong Kong, Singapore, and South Korea became known as the
Four Asian newly industrialized countries (NICs) in the 1970s, recognized for their successful
economic development. However, on its way to becoming a high-income developed country,
Taiwan encountered a number of difficulties. Some of them might have been caused by the
political threat from China, but there were other challenges that were common to many middle
income countries. Taiwan's experiences of the latter may offer lessons to other developing
countries. The difficulties for Taiwan caused by China may offer more alarming lessons for
countries—including developing countries—that face growing interactions with China.
The Taiwanese Approach is a set of principles and practices that have guided Taiwan's economic
and political development since the 1980s. Here are some key points to include in a PowerPoint
presentation about the Taiwanese Approach:
Pragmatism: The Taiwanese Approach emphasizes a practical, results-oriented approach to
problem-solving.
Innovation: Taiwan has invested heavily in research and development, leading to innovations in
high-tech industries like semiconductors and electronics.
Export-oriented manufacturing: Taiwan has focused on producing goods for export, leading to a
strong manufacturing sector and a large trade surplus.
Small and medium-sized enterprises (SMEs): Taiwan has a thriving SME sector, which has been
supported by government policies and initiatives.
Democracy and human rights: Taiwan is a democratic society with a strong commitment to
human rights, in contrast to mainland China.
Engagement with China: Despite tensions with China, Taiwan has pursued a policy of
engagement, including trade and investment, while maintaining its independence and
sovereignty.
Overall, the Taiwanese Approach has been successful in transforming Taiwan into a prosperous,
democratic, and innovative society, despite challenges posed by its geopolitical situation.
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The Taiwanese Approach refers to a set of principles and practices that have guided Taiwan's
economic and political development since the 1980s. At its core, the approach emphasizes
pragmatism, innovation, and flexibility in response to changing circumstances. In terms of
economics, it has involved a strong focus on export-oriented manufacturing, investment in high-
tech industries, and an emphasis on small and medium-sized enterprises. Politically, it has
involved a commitment to democracy, human rights, and a willingness to engage with China
while maintaining Taiwan's independence. The Taiwanese Approach has been widely lauded for
its success in transforming Taiwan into a prosperous, democratic, and innovative society, despite
its relative lack of natural resources and geopolitical challenges.
