The expansion of Taiwan's high-tech manufacturing production has significantly outpaced the country's GDP growth over the past 10 years, in part because of the increasing use of knowledge-intensive services, the Council for Economic Planning and Development (CEPD) said in a report yesterday.
The report said knowledge-intensive services are playing an increasingly important role in the nation’s economic development as Taiwanese businesses upgrade and reinvent themselves in trying to create higher added-value.
“With local manufacturers upgrading their products and services to keep pace with globalization, knowledge-intensive services — including financial, insurance, information, telecommunication services — are proving to be indispensable to the transition,” a council section chief said on condition of anonymity.
Taiwan saw its high-tech products account for 44.2 percent of its total exports last year, making it the world’s second-largest high-tech product exporter, the report said.
Taiwan’s high-tech manufacturing production recorded average annual growth of 10.3 percent from 1996 to last year, twice as much the average annual GDP growth recorded during the same period, the report said.
The share of knowledge-intensive services in the intermediate inputs used by high-tech manufacturers increased from 10.7 percent in 1996 to 22.2 percent in 2004, the report said.