Domestic research spending soars past US$8 billion

Taiwan spent NT$260.9 billion (US$8.03 billion) on research projects in 2004, accounting for 2.4 percent of the country's GDP, similar to the 2.6 percent level in the US, Germany and South Korea, according to figures released by the Directorate-General of Budget, Accounting and Statistics (DGBAS).

DGBAS data released yesterday showed the amount of research funds recorded a growth of 30 percent over 2000, which represented an average annual growth rate of 7.2 percent during the four-year period.

The growth indicated both the government and private enterprises in the country have never spared efforts in promoting research and innovation projects while facing strong global competition by emerging economies with low-priced products.

In an analysis of the 2004 research funds, the DGBAS said that the private industrial sectors spent a total of NT$167.9 billion on high-tech research programs that year, representing 33.6 percent growth from the 2000 level.

Most private funds were used in the research and development of innovative information and electronic products, the DGBAS said.

The analysis also showed that private sectors invested twice as much money in research and development as the government during the 2000-2004 period, a situation similar to that of Germany and the US.