Knowledge Intensive Industry, A New Driver for Taiwan Economic Development.

E080410Y8 May. 2008（E102）

According to the Council for Economic Planning and Development, development of knowledge intensive industry in Taiwan at the current rapid pace has been a determinant factor that triggers Taiwan economy transformation. The latest statistics say that 63.0% economic growth in Taiwan comes from knowledge intensive industry in 2007, which represents a sharp increase of 12.9% compared with 50.1% in 2006.

“Knowledge intensive industry” has two main segments: manufacture and service industries. The former includes the industries of aerospace, vehicles and other transport equipment, communications, computers, and office automation facilities, pharmacy and chemicals, semiconductor, scientific apparatus, electric machinery, and machinery. Also, the industries of finance, insurance, lease, professional science, and technology service, etc. comprise the latter segment.

To keep pace with international trend towards globalization and international industry integration, Taiwan government has been dynamically promoting servitization of manufacturing sector and technology-enabled service sector to construct a knowledge-based economy of strong competitiveness. Taiwan experienced 5.7% economic growth in 2007, and knowledge intensive industry took 3.59% and non-knowledge intensive industry, 2.11% thereof; that is, the former comprises 63% of the growth, while the latter, 27%. Knowledge intensive industry has been gradually standing out to be necessary for the economic growth to take-off.

Contribution from Knowledge Intensive Industry to Taiwan economy in the Past Three Years