ABSTRACT
Taiwan provides a good example of how government policy and market force complement each other to enhance science and technology development. The establishment of the Chung Shan Institute of Science and Technology and the Industrial Technology Research Institute solidified, the base for the development of the country’s defense technology and applied industrial research respectively. Taiwan’s economy mainly consists of small and medium enterprises. This situation directly affects technology development. The foundation for science, education, and research was laid in the mid-1960s when US economic assistance to Taiwan was terminated and the country’s new self-reliance focused attention to industrialization. The Six-Year National Development Plan was announced in 1991 as a major government policy designed to boost personal income, strengthen the development potential of local industries, balance regional development, and enhance the quality of life.
