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Reorganizing the R&D System to Promote an Innovation-Based ...

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m<strong>an</strong>agement <strong>an</strong>d marketing recorded only a small portion as observed in Table 4 <strong>an</strong>d<br />

Table 5.<br />

Table 4 Categories of innovations for m<strong>an</strong>ufacturing industry of Taiw<strong>an</strong> in 2003<br />

M<strong>an</strong>ufacturing Products Technology M<strong>an</strong>ufacturing Org<strong>an</strong>izational Marketing<br />

Industry<br />

Process M<strong>an</strong>agement<br />

Electronics 49% 33% 15% 0% 3%<br />

Non-electronics 34% 30% 17% 9% 10%<br />

Source: Conference materials of 2003 Science <strong>an</strong>d Technology Meeting of <strong>the</strong><br />

Executive Yu<strong>an</strong>, R.O.C, investigated by Industrial Economics <strong>an</strong>d Knowledge Center<br />

(IEK), ITRI<br />

Table 5 Categories of <strong>Innovation</strong>s for Service Industry of Taiw<strong>an</strong> in 2003<br />

Contents<br />

of Services<br />

Procedures of<br />

Service Providing<br />

Org<strong>an</strong>izational Marketing Cus<strong>to</strong>mizati<br />

M<strong>an</strong>agement<br />

on<br />

Service 33% 22% 15% 16% 13%<br />

Industry<br />

Source: Conference materials of 2003 Science <strong>an</strong>d Technology Meeting of <strong>the</strong><br />

Executive Yu<strong>an</strong>, R.O.C, investigated by IEK, ITRI.<br />

It should be noted that inputs of science <strong>an</strong>d technology c<strong>an</strong> be a major driving<br />

force for <strong>the</strong> innovation-based economy, but <strong>an</strong> efficient innovation network is more<br />

crucial for capitalizing on <strong>the</strong> effort made. However, current systems for science<br />

research <strong>an</strong>d technology development of Taiw<strong>an</strong> are undermined by such problems as<br />

unexploited linkages between industry <strong>an</strong>d universities. Therefore, <strong>the</strong>re is a need <strong>to</strong><br />

streng<strong>the</strong>n <strong>the</strong> structural networking interfaces in <strong>the</strong> innovation networks, especially<br />

interactions between industry <strong>an</strong>d universities.<br />

4. Current status of interactions between industry <strong>an</strong>d universities<br />

4.1 In retrospect<br />

Taiw<strong>an</strong> has been a “fast follower” in economic development. A stylized division<br />

of labor within <strong>the</strong> current innovation system could be categorized as follows.<br />

Universities carry out academic research <strong>an</strong>d training of talent. Industrial technology<br />

research institutes conduct technology introduction, value addition, <strong>an</strong>d technology<br />

diffusion. Industry is doing technology absorption <strong>an</strong>d product m<strong>an</strong>ufacturing. The<br />

development of <strong>the</strong> economy is effectively supported through efficient interactions<br />

among three groups.<br />

6

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