1. The Taiwanese Experience in Transition
EBRD發掘歐銀受援國轉型商機 研討會
March 7, 2017
Paul S. P. Hsu
Chairman, Association of Emerging Market Studies
Chairman & CEO, PHYCOS International Co., Ltd.
Founding Chairman, Epoch Foundation

2. Agenda

3. Index Preface Taiwan Experience
Taiwan’s Economic Path of Transformation in the Past 60 Years
Education System Requires Changes in Taiwan
Revitalization of Education System
Commercialization of R&D Result
The Evolution of Agriculture Sector in Taiwan
Taiwan Experience in Development of Healthcare Industry
Healthcare Industry in Taiwan
Major Components of Taiwan Government’s Policy of Developing Biotech Industry
Community Development in Taiwan
–Smart City & Smart Village
Human-Centric Smart
The Roadmap of Smart Village

4. Preface

5. Preface
From the last decade of the 20th century into the 21st century, the trend of a global-scaled redistribution of wealth is quietly but rapidly taking place; the rising of emerging market economies is becoming evident; the boundary between socialism and capitalism is blurring; and the relationship between government and governed is constantly under test. New business model development equals the importance, if not more, of technology development; some long neglected traditional business sector is given increasing attention; and the change of lifestyle generates new business opportunities. It is then evident that we are all facing a brave new world, regardless we like it or not.

6. Taiwan Experience

7. Taiwan’s Economic Path of Transformation in the Past 60 Years
Import substitution
1960s:
Import substitution/ Export-oriented economy
1970s：
Export-oriented economy/
Development of technology industry/ Capital inflows
1980s:
Export-oriented economy/ Development of technology industry/ Capital inflows/ Capital outflows
2010→？
Global trend of wealth redistribution
1990s:
Export-oriented economy/Development of technology industry/Capital outflows/Acceleration of infrastructure development/Entering the global supply chain
2000s：
Asia-Pacific Regional Operations Center/Knowledge-based economy/High value-added service industry/Value-added manufacturing industry
2008→？
Global financial crisis resulted in global economic chaos

8. Ranked No. 5 in the world as of 2016
Taiwan Experience
In 1948,
the foreign exchange reserves of Taiwan was only
USD 170 million.
Taiwan Miracle
by 2017 Jan.,
the foreign exchange reserves of Taiwan was beyond
USD 436 billion.
Ranked No. 5 in the world as of 2016
Economic transformation
Social transformation
Political transformation
Source:

9. Education System Requires Changes in Taiwan
Revitalization of Education System
Education is an Important Industry Leading to Incubating the Talents for the Future, Commercialization of R&D Results as well as Promoting New Startup Companies

10. Revitalization of Education System10
Revitalization of Education System
To improve the quality of educational institutions
To enhance international initiatives to train human talent needed in emerging markets
To inspire independent and creative thinking
To encourage private sector to get involved in the educational system
To retrain the workforce: not only manufacture sector but also knowledge-based service sector
Cross-cultural learning
Lifelong learning
Shared curriculums
To incubate a new generation of talent to be the backbone of an affluent future middle class

11. Research institution/ University
Education is an Important Industry Leading to Incubating the Talents for the Future, Commercialization of R&D Results as well as Promoting New Startup Companies
R&D
Intellectual property rights
Licensing
Technology transfer
Spin-off company
Industry sponsor
Industry
Research institution/ University
Stock option/Cash

12. The Evolution of Agriculture Sector in Taiwan

13. The Evolution of Agriculture Sector in Taiwan
To redefine the agriculture sector
Food safety becomes an important consideration
To enhance international cooperation
Farmers’ Association in Taiwan becomes the bridge between agriculture industry and small farmers
Agriculture research funded by government and/or agriculture industry: Lower the burden of small farmers
只是一個例子～

14. Taiwan Experience in Development of Healthcare Industry
Healthcare Industry in Taiwan
Major Components of Taiwan Government’s Policy of Developing Biotech Industry
Biotech 省略

15. Healthcare Industry in Taiwan15
Healthcare Industry in Taiwan
Biotech Application
Company: 510
Total revenue: USD 2.7b
CAGR 2006~15: 8.20%
CAGR:
Compound Annual Growth Rate
Taiwan has become PIC/S GMP members already.
Pharmaceutical
Company: 320
Total revenue: USD 2.4b
CAGR 2006~15: 1.80%
Medical Device
Company: 1041
Total revenue: USD 4.1b
CAGR 2006~15: 7.40%
PIC/S:
Pharmaceutical
Inspection Convention and
Pharmaceutical Inspection Co-operation Scheme
Healthcare Delivering System
Ex. Hospital management , healthcare reform etc.
加註：CAGR , consolidate of
GMP: Good Manufacturing Practices
Source: Biotech industry in Taiwan, 2016; PHYCOS
Annotation: Exchange rate is average of spot buying and selling exchange rate at 12/12/2014 from Bank of Taiwan.

16. Major Components of Taiwan Government’s Policy of Developing Biotech Industry
R&D
Commerciali -zation
Pre-clinical test
Product
Biotech
value chain
Government:
Infrastructures and Regulations
Involved
parties
Research institutions/
Universities
Private/Public funded
incubation centers
Private companies/ Individuals
Government funding
1. Venture capital
2. Corporate funding
3. International funding
Funding
sources
Government funding
Venture capital
Industry sponsor

17. Community Development in Taiwan -Smart City & Smart Village
Human-Centric Smart
The Roadmap of Smart Village

18. Human-Centric Smart
Source:

19. The Roadmap of Smart Village
Infrastructure
Transportation
Energy
Recycled energy
ICT
E- commerce
Information
Big data
Logistics
Smart Village Roadmap
4G/5G
Digital city
Utility
Smart IOCC
EMS
Smart grids
Green & Smart arch
ITS
Guiding
Parking
Metro system
ICT: Information and Communications Technology
IOCC: Integrated Operations Control Center
ITS: Information Technology Services
EMS: Express Mail Service
Source: Dr. Wei F. Lee

20. Association of Emerging Market Studies
For more information:
Association of Emerging Market Studies
(aemarkets.org/#/)
PHYCOS International (
Epoch Foundation ( 20
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