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

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management and marketing recorded only a small portion as observed in Table 4 and Table 5. Table 4 Categories of innovations for manufacturing industry of Taiwan in 2003 Manufacturing Products Technology Manufacturing Organizational Marketing Industry Process Management Electronics 49% 33% 15% 0% 3% Non-electronics 34% 30% 17% 9% 10% Source: Conference materials of 2003 Science and Technology Meeting of the Executive Yuan, R.O.C, investigated by Industrial Economics and Knowledge Center (IEK), ITRI Table 5 Categories of Innovations for Service Industry of Taiwan in 2003 Contents of Services Procedures of Service Providing Organizational Marketing Customizati Management on Service 33% 22% 15% 16% 13% Industry Source: Conference materials of 2003 Science and Technology Meeting of the Executive Yuan, R.O.C, investigated by IEK, ITRI. It should be noted that inputs of science and technology can be a major driving force for the innovation-based economy, but an efficient innovation network is more crucial for capitalizing on the effort made. However, current systems for science research and technology development of Taiwan are undermined by such problems as unexploited linkages between industry and universities. Therefore, there is a need to strengthen the structural networking interfaces in the innovation networks, especially interactions between industry and universities. 4. Current status of interactions between industry and universities 4.1 In retrospect Taiwan has been a “fast follower” in economic development. A stylized division of labor within the current innovation system could be categorized as follows. Universities carry out academic research and training of talent. Industrial technology research institutes conduct technology introduction, value addition, and technology diffusion. Industry is doing technology absorption and product manufacturing. The development of the economy is effectively supported through efficient interactions among three groups. 6
4.2 Current developments of universities Universities and colleges in Taiwan have grown substantially in number from 123 in 1991 to 154 in 2002. As a result of the rapid expansion in the high education system, nearly 70% of Ph.D. graduates are employed on campus, providing an abundant supply of advanced R&D personnel. Along with the growth of advanced R&D talents, government funded R&D expenditures at universities and colleges have grown significantly since 2002 as well. Ratio of universities’ R&D expenditures funded by government hiked to 84.75% in 2001, whereas funded by industry reduced to 3.23%, relatively low compared with those of the U.S., UK and South Korea as compared in Table 7. Table 7 University R&D budget from private sector Unit:% 1991 1997 1998 1999 2000 2001 USA 5.30 6.00 6.10 6.20 6.00 5.70 Canada 7.00 9.80 9.40 9.10 9.60 9.60 Germany 7.00 9.70 10.50 11.30 11.60 11.30 UK 7.80 7.10 7.30 7.30 7.10 6.20 Japan 2.40 2.40 2.30 2.30 2.50 2.30 Finland 3.60 5.20 4.50 4.70 5.60 6.70 Sweden 5.20 4.80 - 3.90 - 5.50 South Korea - 14.90 13.10 10.80 15.90 14.30 Taiwan-Private Sector - - 3.03 4.75 4.13 3.23 Taiwan-Public Sector - - 88.33 85.80 85.10 84.75 Source: Survey and Analysis of Innovative Competitiveness of Knowledge Economics Project, DOIT, MOEA, 2003 As regards R&D performance of universities indicated in terms of paper publications in 2001, Taiwan ranked the 18th in the world in the number of published papers, accounting for 1.1% of the world’s total paper publications as shown in Table 8. For the number of papers published in the database of Science Citation Index(SCI), Taiwan ranked 17th with 10,635 papers published in 2001. The average frequency for Taiwan’s papers being cited is 2.71 over the 1995-2001 period, lower than those of Japan and Singapore but higher than those of South Korea and China. In 2001, 55.5% of Taiwan’s papers published in databases of SCI, Social Science Index (SCI) and Engineering Index (EI) were contributed by National Taiwan University (NTU), National Tsing Hwa University (NTHU), National Chiao Tung University, National Cheng Kung University (NCKU), and National Central University (NCU). 7
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