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Taiwan plans to develop industrial clusters

With industrial clustering already one of the strengths of Taiwan’s economy, as reflected in a recent global competitiveness survey, the government plans to invest NT$650 million to develop new clusters over the next three years, the nation’s economic planning body said yesterday.

Taiwan topped the world in terms of state of cluster development in the Global Competitiveness Report 2008-2009 released last month by the Geneva-based World Economic Forum (WEF), the third year in a row it had held the top spot.

To build on that advantage, the Ministry of Economic Affairs will invest NT$650 million (US$19.62 million) in a project running from this year to 2011 to help 90 innovative industry clusters take shape, including technology traveling, healthcare and leisure, LED intelligent control lighting and biomass material applications.

The project is expected to ­generate NT$18 billion in business opportunities, an official with the Council for Economic Planning and Development said yesterday.

The official said the new project would continue Taiwan’s clear differentiation in its industrial clustering pattern.

At present, he said, most of Taiwan’s electronics clusters can be found in the north, while central Taiwan is strong in precision machinery and tools and the south offers heavy industrial clusters in steel, petrochemicals and mechatronics.

He added that there were many conventional manufacturing sectors known for their handicraft skills, such as porcelain and pottery making in Taipei County’s Yingge Township (鶯歌), and wood carving in Miaoli County’s Sanyi Township (三義).

The diversity and strength of those clusters were reflected in the Global Competitiveness Report, where Taiwan was tied with the US with a score of 5.6 points in the “state of cluster development” category. The category is part of a country’s rating for “business ­sophistication,” one of the report’s 12 pillars that measure 134 major and emerging economies’ abilities to provide prosperity for their citizens.

Taiwan received a score of 5.52 for cluster development in the 2006-2007 report and 5.7 in the 2007-2008 report, with the highest possible score a 7, the official said.

Singapore and Italy followed Taiwan and the US with a score of 5.3, followed by Japan and Finland with a 5.2. Filling out the top 10 in the category were Hong Kong, South Korea, Switzerland and Germany.
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