Taiwan and its firms are innovative orientation (Kastelle, T., Hu, M., Dodgson, M. (2014); Huang, H. W. and Sande-Veiga, D. (2024)), and its economic growth is driven by innovation in the same time. Although Taiwan companies have full motivation to be in control of destiny, enjoy improving manufacturing processes and fulfil the demand of customers, it did not occur overnight, neither did it come from sky. The study found that government has played a significant role especially through regulation with policy setting in Taiwan and innovation investment.
Taiwan has begun to make progress in high technology with information and communication technology industry since 1980s and spent more than three decades concentrating on innovation development. Taiwan has promoted and drove innovation and development capacities, alone with channels technology resources into economic value, which leads to its research and technological development to be recognized worldwide. Furthermore, Taiwan now owns a vibrant entrepreneurial ecosystem to actively promote innovation, which leads the growth of innovation and numerous tech startups. And it is not yet all, Taiwan continually fosters a strong innovation environment in a localized cluster of specialist producers with deep international connections.
Taiwan has policies to boost innovation that include tools not only direct subsidies but also tax credits, plans designed to improve R&D dissemination and adoption by businesses, deregulate fundraising, retain domestic and attract foreign talent and so on to improve innovation and attract talent. Taiwan has reliance in innovation, which continually leads a country to enjoy sustainable economic growth and stay competitive globally.
National Science and Technology Council-Taiwan (NSTC) reported that Taiwan total annual R&D expenditures in 2023 is NT$937.3 billion, which includes NT$135.8 billion from the government sector and NT$801.5 billion from enterprises annual R&D expenditure. Taiwan dedicates R&D to drive innovation and technology breakthrough as well as in effective resource integration. Taiwan launched the Asia Silicon Valley Development Plan to focus on promoting the innovative R&D and building a comprehensive ecosystem for innovative startups, at the same time, connecting Taiwan with worldwide high-tech R&D communities and seizing the opportunities in next generation industries.
Innovation fostering in Taiwan is not only put up by human power and technological infrastructures, but also the robust innovation policy, promotion and rule of law to drive Taiwan into a pivotal position and indispensable role in next-generation technology. Taiwan government concentrates on promoting six core strategic industries, launching net-zero technology solutions and also building Forward-looking infrastructure Development Program (Digital infrastructure). Six Core Strategic Industries Policy is prioritized on innovation in information and digital, cybersecurity, precision healthy, renewable energy and national defense. Taiwan’s pathway to Net-Zero Emissions in 2050 aim to achieve energy, industrial, lifestyle and social transition. The Forward-looking Infrastructure Development Program advances the development of soft infrastructure, such as network security, digital creative cultural content and scientific research facilities.
Above and beyond, Taiwan concentrates on strengthened international scientific research-related cooperation to leverage resources and capabilities of international partners, cultivate scholars from younger generations, and enhance the pool of talents in the science and technology domain.
In 2024, NSTC continually proposed annual budgets of NT$159.6 billion (around US$4.9 billion) for 2025. With the budget and the existing advantages in semiconductor and information and communication technologies, Taiwanese government intends to bolster technological development, to solve social needs and problems with new technologies, and to transform Taiwan into an AI island. As well as helping industries make digital and net-zero transitions to balancing the development, strengthening communication resilience and developing smart medical services.
The NSTC survey highlights that Taiwan´s R&D efforts remain largely focused on experimental development research. Taiwanese endeavors to fulfill the 2035 vision of forward-looking innovation, democracy, inclusiveness, resilience and sustainability. Taiwan is planning ceaselessly to concentrate its resources on fields such as artificial intelligence, quantum technology, semiconductors, information security, net-zero carbon emissions, 6G generation communications, age-tech, space technology, and humanities to build new strength in technologies and strengthen the resilience of industries in global supply chain.
Through all the innovation expenditure, innovation related policy, innovation promotion, science and technology infrastructure and manpower with higher education, Taiwan and its companies successfully turn into innovation orientation country and companies. With strong manufacturing, advanced technology, innovation, manpower, intellectual protection, a global trade network and the goal and policy setting, it is most likely Taiwan will remain to be an innovation orientation, an attractive location for investment from oversea and innovation development dedicated country.
Bibliography
- Huang, H. W., Sande-Veiga, D. (2024), A orientación á innovación de Taiwan, Tempo Exterior, 25(2), 75-87.
- Kastelle, T., Hu, M., Dodgson, M. (2014), Innovation in Taiwan: What is Next?, Innovation, 15(4), 4902-2917.
- Ministry of Foreign Affairs, ROC (Taiwan), Retrieved August 20, 2025 from https://www.taiwan.gov.tw/index.php
- National Science and Technology Council, Executive Yuan ROC (Taiwan), National Science and Technology survey, Retrieved July 18, 2025 from https://wsts.nstc.gov.tw/stsweb/technology/TechnologyDataIndex.aspx?language=E
- National Development Council, Executive Yuan ROC (Taiwan), Program for Promoting Six Core Strategic Industries, Retrieved July 9, 2025 from https://www.ndc.gov.tw/en/Content_List.aspx?n=2D827BFE7E3598BE
- National Development Council, Executive Yuan ROC (Taiwan), The Asia Silicon Valley Development Plan, Retrieved July 18, 2025 from https://www.ndc.gov.tw/en/Content_List.aspx?n=5B40E2CED6E6DB42
- Taiwan Institute of Economic Research, Discover Taiwan’s Startup Ecosystem, National Development Council, Startup Island Taiwan, Taipei, 2024
