ABSTRACT
The phenomenon of Taiwan’s rapid development has been analyzed from several perspectives, but few, if any, of the existing studies have focused primarily on the technological dimensions of the island’s industrial progress and the concomitant role of the state in orchestrating the technological upgrading of the economy. This chapter looks at the process and problems of technological development in Taiwan’s industrial sector. Over the last several years, the Taiwan economy has gradually but steadily moved away from being merely a low-cost manufacturing site for advanced country multinational firms. Taiwan leaders have adopted a two-pronged strategy for promoting the development of science and technology. One major goal of the Taiwan state has been to use the process of technological upgrading as a means to expand and extend the island’s “interdependence” with key actors in the international economy. The other goal has been to increase the island’s technological self-sufficiency through industrial deepening.
