ABSTRACT
Industrial development policy in Taiwan has been closely tied with its trade strategy. The dynamic comparative advantage shifted Taiwan’s state-led industrial policy from active sector-specific industrial promotion prior to the 1980s to a passive yet pivotal role of macro management for developing strategic parts and components. After the drive for globalization, the Taiwanese government undertook functional support to promote its overall industries. Success stories came from coherent coordination between industry/product characteristics and national technology capability as well as government policies.
