WHITE PAPER ON SCIENCE AND TECHNOLOGY
An Executive Summary

NATIONAL SCIENCE COUNCIL
REPUBLIC OF CHINA, TAIPEI, TAIWAN
July 1997

 

I. Introduction



The compilation of the first "White Paper on Science and Technology" 
of the Republic of China (R.O.C.) will provide a far-seeing blueprint 
for the nation's scientific and technological development well into 
the next century. It is hoped that this planning will result in faster 
technology advancement in science and accelerated economic growth, a 
better quality of living, and the establishment of an autonomous 
national defense capability. In other words, it is desired to rely on 
the development of science and technology to drive the nation's 
modernization and raise international competitiveness.

On the eve of the 21st century, the nations of the world face three 
major challenges: (1) The global trend towards free trade has made it 
more difficult to protect domestic industries with formal or informal 
barriers. (2) In the face of growing calls for environmental protection, 
"sustainable development" must be achieved in order to maintain the 
ecological balance while meeting the need of the growing human population 
for more resources such as food, energy, and water. (3) The arrival 
of an "information society" is deeply affecting the way people live 
and work, changing the way companies and the government operate, and 

bringing about a new culture in a world that is fast becoming an even 
more closely-knit global village.

Science and technology will play a pivotal role in addressing these 
three challenges. Technology is the most important factor in raising 
industrial competitiveness: The key to success in today's commercial 
world is to continuously invest in R&D and introduce new products and 
technologies faster than one's competitors. In addition, since knowledge 
of science and technology is crucial to the formulation of policies 
meeting the needs of a diversified society, scientific and technological 
information is an especially vital as a decision-making tool.

Because of their awareness of the importance of science and technology, 
the world's nations are gradually updating their sci-tech policies and 
exhibiting the following trends: (1) Governments are taking a more 
active role in promoting the development of science and technology. 
(2) Increasing emphasis is being placed on basic research; researchers 
at universities and research institutions are being encouraged to 
discover new knowledge and techniques, and train the next generation 
of workers. (3) Greater respect for intellectual property rights is 
helping protect research findings and boosting the competitiveness of 
high-tech industries. (4) International cooperation is flourishing in 
a time of mixed cooperation and competition. (5) Asia's flourishing 
newly industrialized countries--including Korea, Singapore, and 
Malaysia--are implementing ambitious government-sponsored high-tech 
development plans. 

The following are among the most significant changes in the R.O.C.'s 
sci-tech development environment over the last decade: (1) Overall 
funding for R&D has risen from NT$28.7 billion in 1986 to NT$125.0 
billion in 1995; this represents growth from 1.01% to 1.81% of GDP. 
(2) The number of researchers with at least a university education 
has risen from 22,145 in 1986 to 45,317 in 1995. Moreover, many 
outstanding  scientists and engineers have returned to Taiwan 
to play a role in the industrial and academic sectors. (3) A number 
of world-class research facilities such as the Synchrotron Radiation 
Research Center has been completed. (4) In terms of number of published 
papers in the area of basic research, the R.O.C. has moved up from 
37th place in 1985 to 19th place in 1995 in the world. (5) The rapid 
growth of the R.O.C.'s high-tech firms has given it the world's 
third-largest information industry and the world's fourth-largest 
integrated circuit industry. Technology-intensive industries accounted 
for 37.5% of all manufacturing output in 1995--up from 24% in 1986.

Although Taiwan's technological progress has come a long way, both 
high-tech industries and ordinary citizens are making even greater 
expectations and demands of science and technology; among the most 
noteworthy of which are the following: (1) The government's sci-tech 
budget should continue to grow steadily; resources should be rationally 
allocated and integrated in the most effective manner. (2) Current 
methods should be revised in order to speed up the practical application 
of research findings from government-funded projects. (3) Industrial 
technology R&D strategies should be periodically revised to sustain 
mature high-tech industries and nurture emerging high-tech industries. 
(4) An outstanding academic research environment should be created in 
order to foster the development of world-class researchers and 
research institutions. (5) Research results should be applied to 
improving the living environment and citizen's physical and mental 
health. (6) Progress in science and technology should be accompanied 
by increased attention to the humanities. 

II. Strategies and Measures

The following twelve strategies and related measures have been formulated 
in order to achieve the nation's sci-tech development objectives:

Strategy 1: R&D expenditures will grow steadily and the quality of 
human resources continues to rise

The government will maintain the steady growth of the nation's sci-tech 
budget and encourage private enterprises to increase their R&D investment. 
It is anticipated that R&D will account for 2.5% of the GDP in 2000 
and 3.0% in 2010. 

The training and recruiting of high-tech workers will gradually serve to raise the 
qualifications of researchers in the R.O.C. It is expected that the number of
 researchers with at least a university education will rise to 52,500 in the year
 2000, and half of these will possess master's or doctoral degrees. It is further
 hoped that the number of researchers will grow to 75,000 in 2010, and 60% of 
these will possess master's or doctoral degrees.

Strategy 2: Research resources will be integrated in the most effective 
manner and taking advantage of universities' R&D capabilities

Recommendations of the National Science and Technology Conference and 
the Science and Technology Advisory Group will serve as the base for 
formulating the nation's mid- and long-term sci-tech development 
policies. The NSC Council Board will be more active in integrating 
research resources and realizing a multiplier effect. The inter-agency 
"Academic Cooperation Committee" will work to integrate sci-tech 
resources at government agencies and coordinate the sharing of 
resources between government and the private sector. It is hoped that 
the research capabilities of universities, the Academia Sinica, and 
private research institutions will help meet the needs of government 
and industry. The implementation of national-level sci-tech programs 
will better integrate up-, mid-, and downstream research resources, 
and firms will be encouraged to participate in joint research projects. 

Strategy 3: Frontier science program and national sci-tech projects 
will be promoted

Support for basic research will continue and the basic research budget 
will be no less than 15% of the nation's total R&D expenditures. Carefully 
selecting appropriate research topics and giving researchers sufficient 
long-term funding will promote frontier science research. It is hoped 
that the R.O.C.'s outstanding scientists will succeed in making 
significant breakthroughs in important areas and gradually help 
Taiwan to become a research hotspot of the Asia-Pacific region. Key 
research topics in the natural sciences will include number theory, 
non-linear systems, strong correlation electron systems, new types of 
chemical materials, and chemical dynamics. In the area of bioscience, 
key topics will include glycobiology, gene expression and control, 
neuroscience, the mechanisms of aging and senescence, structural 

biology, and inter-disciplinary cognitive science.

National sci-tech programs will seek to resolve the nation's major 
socio-economic problems. Committees consisting of representatives 
from industry, government, academia, and the research community will 
supervise the planning and execution of major national programs. 
Approved programs will be given first priority by the implementing 
units. The topics of four already-chosen national research projects 
are telecommunications, disaster prevention, human gene program, and 
agricultural biotechnology. 

Strategy 4: Key industrial technologies will be developed

High-tech industries already have a solid foundation in Taiwan, and 
private sector has taken the lead in developing and acquiring key 
technologies. However, in areas where the nation is lagging, and where 
market potential and private willingness to invest are weak, the 
government will play a leading role in developing key products and 
technologies, and will devise measures for stimulating private participation.

Besides continuing to promote existing high-tech areas, the government 
has already selected the emerging areas of multimedia (including 
communications), biotechnology, aerospace, precision machinery, 
special materials, and electric vehicles and batteries as the focal 
areas of future industrial technology development. 


The pace of development of sophisticated technologies will be accelerated 
and the time required for technology transfer shortened by encouraging 
joint research involving the industrial and academic sectors, and 
appropriately utilizing the research resources of universities, 
national laboratories, and the Academia Sinica.

Strategy 5: Science-based industrial parks will be developed in order 
o accelerate the practical application of research findings


The development of various types of high-tech industrial parks will 
help make Taiwan an "island of science and technology." Core science-
based industrial parks will be built in suitable locations; according 
to current targets, each park will eventually contain approximately 
200 high-tech firms and have a total annual turnover exceeding NT$400 
billion. The areas surrounding these core parks will contain privately-
or publicly-developed high-tech industrial parks, research parks, and 
software parks, etc. In addition, the Chingshan and Lungyuan research 
parks being developed by Ministry of Defense will open to private 
industry. These developments will establish clusters of high-tech 
firms. The various types of high-tech industrial parks will serve as 
nuclei for the development of "technological/cultural cities" 
incorporating surrounding communities. Moreover, the National 
Information Infrastructure (NII) program and various transportation 
projects will be used to link research institutions, industrial areas, 
and high-tech parks into a network that will be a foundation for the 
emergence of an advanced information society.

To accelerate the practical realization of research findings, the 
high-tech industrial parks will establish improvement centers or 
open laboratories that will assist entrepreneurs in developing new 
products. Academic-industrial cooperation will be encouraged, and 
patents resulting from government-supported research will be transferred 
to the private sector to facilitate the development of commercial 
applications. 

Strategy 6: The National Information Infrastructure (NII) program will 
be implemented

Current efforts to promote Internet use have a goal of three million 
users by the year 2000. Building Taiwan as an "Asia-Pacific regional 
Internet hub" includes the vigorous deregulation of telecommunications 
and the accelerated establishment of network lines. 

The development of new Internet, 3C (computers, communications, and 
consumer electronics), and multimedia technologies will involve such 
avenues of research as the "National Telecommunications Research 
Project," "Measures to Encourage the Development of New Products," 
and "Academic-industrial Cooperative Projects."

Strategy 7: Science and technology will be used to achieve sustainable
development and increase nation*s well-being

The soon to be established "National Sustainable Development Commission" 
will provide an institutional framework for the promotion of sustainable 
development in Taiwan. This body will assist government agencies with 
the planning and execution of research projects and will carry out 
inter-agency and inter-disciplinary projects. 

Research on public health and safety will include national projects on 
disaster-prevention and human gene program, and research on nuclear 
safety and accident prevention. 

Research on agriculture and oceanography will include a national project 
on agricultural biotechnology, integrated oceanographic projects, and 
the establishment of an oceanographic research center.


Strategy 8: Sci-tech policies will be put on a sound legal basis

After taking into consideration overseas legislative experience and the 
national characteristics of the R.O.C., a basic science and technology 
law will be drafted in hopes of overcoming current bottlenecks and 
promoting scientific and technological development.

In addition, statutes governing intellectual property rights, personnel 
rules of science and technology employees, and the development of 
industrial technology will be drafted or amended.

Strategy 9: Harmonizing science/technology and the humanities

Specialists in science, technology, the humanities, and social sciences
will be invited to "Sci-tech/Humanities-social science Dialogue Forums" 
at which many of the most significant issues facing contemporary society 
will be discussed. It is expected that the Forum can also result in 
potential joint research topics which will require researchers from 
sci-tech, the humanities and social sciences. Such interdisciplinary 
research projects will bring understanding and harmony in both 
technological and humane aspects. 

Strategy 10: Participation in international cooperation will be 
strengthened and sci-tech exchanges with Mainland China encouraged

Cooperation with the advanced nations will be stepped up via bilateral 
scientific and technological cooperation agreements. Cooperation with 
newly industrialized countries will be carried on an equal partner 
basis and experiences in science and technology development will be 
shared with developing countries. 

The R.O.C. will actively participate in international research projects 
addressing such issues as global changes and natural disaster 
prevention. Research teams will participate in multi-national projects 
involving the use of sophisticated, large-scale equipment. In view of 
the growing trend towards regional cooperation, the R.O.C. will take 
part in activities sponsored by APEC and other groups.

The national laboratories, the Industrial Technology Research Institute, 
and other research organizations will establish cooperation relationships 
with various overseas research institutions.

As for scientific and technological exchange agreements with Mainland 
China, it is hoped to establish a framework for cooperation and carry 
out exchanges and cooperative projects addressing topics concerning 
public welfare; these topics may include meteorology, earthquakes, 
energy technology, resource exploration, and marine technology.

Strategy 11: Sci-tech education and public awareness will be broadened

The findings of research on sci-tech education will be put into practice, 
a science and technology broadcasting network will be created, and a 
museum of science, technology, and industry established. Science- and 
technology-related promotions will include international student science 
competitions and various types of workshops and seminars.

Strategy 12: National defense R&D will be stepped up and civilian-
military cooperation promoted

Measures to boost national defense R&D will include strengthening the 
policy guidance function of the inter-agency "National Defense 
Technology Development Implementation Commission" and devising rational 
indices for the amounts of resources that should be committed to 
defense technology development in light of national defense and overall 
sci-tech development policies. A strategic planning and evaluation 
procurement will be established. In order to boost the nation's ability 
to autonomously develop weapons systems, the scope of participation of 

academia, industry, and civilian research organizations in defense 
technology development will be increased.

As for the development of joint-use technologies with military and 
civilian applications, a timetable will be drawn up for the partial 
conversion of the Chung Shan Institute of Science and Technology (CSIST) 
into a private, non-profit research institute. The campus of the CSIST 
will gradually open to the public and educational institutions and 
private firms will be encouraged to take advantage of its facilities. 
Apart from the continued execution of joint-use technology development 
projects, the CSIST will step up cooperation with private industry, and 
will participate in joint international projects and strategic 
alliances. 


III. Major Science and Technology Activities


Besides presenting the above strategies and related measures, activities 
of focal areas for research and development work in various fields are 
briefed in chapter 4 of the white paper to serve as a basis for 
understanding the status and prospects of each field. These fields 
include basic science, electronics, information and multimedia, 
communications, NII, precision machinery, micromechanical and 
electronic devices, automation, materials science, special chemicals, 
aerospace, medical technology, agricultural technology, biotechnology, 
energy and peaceful uses of atomic energy, public construction, 
disaster prevention, sustainable development, humanities and social 
sciences, and application of technology to government.


IV. Blueprint for Science and Technology Development 
into the Next Century As stated previously, major strategies for national science and technology development are set with the consideration of the challenges of the 21st century, the scientific and technological changes at home and abroad, the hopes and demands that citizens place on science and technology, past experience and the conclusions of the Fifth National Science and Technology Conference. In conjunction with the National Economic Development Plan, we have sketched out the following blueprint for our national overall sci-tech development through the first decade of the next century: 1. An Asia-Pacific regional research center: Five years from now the R.O.C. will possess internationally prominent researchers and research institutions. R.O.C. researchers will be making important contributions in some technical fields, and the island of Taiwan will be considered a major center of science and technology in the Asia-Pacific region. 2. An Asia-Pacific regional high-tech manufacturing center: (1) The output of technology-intensive industries will constitute 40% of all manufacturing output in the year 2000, and manufacturing firms will devote 2% of turnover to R&D. Annual per capita industrial output will reach US$120,000, and 15% of manufacturing firm employees will possess at least a university college education. The R.O.C. will have become an industrialized, developed nation. (2) The output of technology-intensive industries will constitute at least 50% of all manufacturing output in the year 2010, and technological exports will gradually increase until they balance technological imports. (3) More of Taiwan's high-tech firms will develop into multi-national corporations and foreign multi-national firms will come to Taiwan looking for strategic alliances. This will make Taiwan an Asia-Pacific regional high-tech manufacturing center. 3. A technologically advanced nation A key prediction for the Asia-Pacific regional high-tech manufacturing center plan is accelerated industrial upgrading and restructuring. This will be accomplished by means of, among others, the widespread establishment of science-based industrial parks. (1) Core science-based industrial parks: Core science-based industrial parks will be established at suitable locations throughout Taiwan. Each park will eventually contain approximately 200 high-tech firms and have a total annual turnover exceeding NT$400 billion or approximately US$14.5 billion. (2) Satellite science parks: In the vicinity of the core parks, privately- or publicly-developed high-tech industrial parks will be established. These parks will attract supporting industries and speed up the formation of "high-tech industry clusters." (3) Science cities: Core and satellite science-based industrial parks will serve as nuclei for the development of modern "Science cities" preserving local culture and featuring balanced urban and rural development. These planned communities will insure that urban development proceeds in pace with technological undertakings. (4) Hi-tech island: As various major infrastructure projects are completed over the next eight years--including the NII program and a number of transportation projects--the R.O.C.'s research organizations, manufacturers, service firms, science-based industrial parks, and science cities will be linked in a great network, making Taiwan a "hi-tech island." Within the sophisticated information society of the future, individuals, companies, and the government will be able to participate in commercial, educational, cultural, social, and everyday activities via computer networks. The R.O.C.'s manufacturing output will exceed US$300 billion in the year 2000, and technology-intensive industries will account for more than 40% of this total. At that time, the R.O.C. will have become an "industrialized, developed nation." As the forecasts described earlier become reality around the year 2010, the nation's overall level of science and technology will make great strides in all areas. The widespread use of new technologies will lead to an across-the-board rise in the productivity of the public and private sectors, and will enable major improvements in the ecological environment and people's standard of living. At this time, the R.O.C. will become a "technologically advanced nation."

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