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Taiwan ranks No. 1 for R&D in global IT report

In the Economist Intelligence Unit’s (EIU) 2008 global information technology (IT) competitiveness poll, Taiwan ranked No. 1 in the world for research and development (R&D), up from third place last year as it generated the most new IT patents in relation to population.

Taiwan’s patent rate was 1 per 2,000 people, the study showed.

“Taiwan businesses have spent a great deal of money on R&D, averaging US$512 [in R&D spending] per 100 people, slightly behind Japan’s US$707,” Jeffrey Hardee, Business Software Alliance’s (BSA) vice president and regional director for the Asia Pacific region, said at a media briefing in Taipei.

The EIU survey compared 66 countries based on six factors to determine IT competitiveness. BSA, a sponsor of this year’s report, held yesterday’s briefing to share the results.

“The ability of local governments and IT industries to deliver jobs and a better quality of life through IT is strongly affected by how they handle the six drivers of competitiveness,” Hardee said.

The study ranked Taiwan No. 1 and No. 7 in the categories of “R&D environment” and “human capital” respectively.

Taiwan needs most to improve its “overall business environment,” “IT infrastructure,” “legal environment” and “government’s support for IT industry development,” the report said.

In the Asia-Pacific region, Hardee said, IT competitiveness requires effective legal measures against violations of intellectual property rights (IPR) and cyber-crime.

Other than fostering R&D and cultivating skilled workers, Hardee advised the government to improve the IPR environment.

The study also said investment in human capital was key for the IT industry, forecasting that recruiting talent would become increasing difficult for IT companies.

The report also touted the value of competitive broadband markets and other national Internet initiatives that bolster IT sectors by allowing instant interaction and communication.

In addition, it said that North American and European countries had the most effective IP systems in place, but that gradual improvements were evident in lagging markets like China.

The report said that networks, online or otherwise, as well as technology-driven universities that bring together talent, technology and venture capital, would be the best incubators of innovation.

In effect, globalization and the Internet will “liberate” R&D, Hardee said.
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