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Monday, September 22 2008

 

R & D body like Taiwan’s 
ITRI may benefit Philippines

 
This was the observation made aloud by the ITRI president, Dr. Johnson Lee, as he spoke with reporters immediately after giving a talk last week on the institute’s role in propelling Taiwan’s economy over the past 30 years from an industrial to a knowledge and high-technology-based economy. As a result, Taiwan today has an economy with GDP and GDP per capita among the world’s largest.

In 2007, its GDP was $383 billion with its GDP per capita at $16,790.

That high-technology exports have made this possible has been underscored by the fact that Taiwan has among the largest number of patents registered in the United States. In 2006, it had 6,361 patents for high-technology devices registered that year with only Germany, Japan and the US surpassing this number in ascending order.

Dr. Lee spoke at a forum on technology and economic trends at the Sofitel Hotel in Manila on the role of R&D in Taiwan’s economy. The forum was organized by the joint Senate-House of Representatives Committee on Science, Technology, and Engineering.

COMSTE is co-chaired by Senator Edgardo Angara and Cavite Representative Emilio Abaya. The committee’s task is to spur legislation to enable the Philippines to become competitive in today’s global and knowledge-based economy.

Dr. Lee told reporters that the US model of academe alone doing R&D while industry commercialized the results of these research and development efforts might not be viable for the Philippines. For research done in Philippine universities might be too theoretical for Filipino companies to commercialize.

Thus, a separate institution dedicated to applied research and specialized in high technology similar to Taiwan’s ITRI might also be viable for the Philippines, according to him. But he added that the Philippines would have to spend more than the 0.12 percent of its GDP that it allots yearly for R&D.

He noted that Taiwan allots 2.25 percent of its yearly GDP to R&D efforts and this amounted in 2006 to over $15 billion.

In a global and knowledge-based economy, innovation is the key to a country’s and a company’s competitiveness. In turn, innovation is the result of R&D efforts undertaken.

In addition, Dr. Lee explained that the Taiwanese government established ITRI in 1973. However, the institute never ever depended on a budgetary allotment from government for its funding.

Rather, it had and continues to source its funds from revenues for R&D projects that it actively seeks from government and the private sector. Such projects are undertaken to spur creation of new high-technology industries and enable traditional industries to remain competitive through upgraded technologies and processes.

ITRI’s R&D fields include information and communications technology; material, chemical, and nanotechnologies; biomedical technologies; advanced manufacturing systems; and energy and the environment solutions.

Dr. Lee said that such R&D efforts yielded for ITRI in 2007 $560 million in revenues. The amount came from royalties from patents, R&D project fees, and various consultancy services such as laboratory testing, training of personnel and pilot production of new products. Its clients from the private sector included large companies and SMEs.

ITRI’s R&D efforts are credited for Taiwan’s becoming today a major global player in semiconductors, an ascent which began in 1980. It is also credited for Taiwan’s hefty presence in the global ICT products market—having 74-percent share of the global market for notebook computers as an example.This was the observation made aloud by the ITRI president, Dr. Johnson Lee, as he spoke with reporters immediately after giving a talk last week on the institute’s role in propelling Taiwan’s economy over the past 30 years from an industrial to a knowledge and high-technology-based economy. As a result, Taiwan today has an economy with GDP and GDP per capita among the world’s largest.

In 2007, its GDP was $383 billion with its GDP per capita at $16,790.

That high-technology exports have made this possible has been underscored by the fact that Taiwan has among the largest number of patents registered in the United States. In 2006, it had 6,361 patents for high-technology devices registered that year with only Germany, Japan and the US surpassing this number in ascending order.

Dr. Lee spoke at a forum on technology and economic trends at the Sofitel Hotel in Manila on the role of R&D in Taiwan’s economy. The forum was organized by the joint Senate-House of Representatives Committee on Science, Technology, and Engineering.

COMSTE is co-chaired by Senator Edgardo Angara and Cavite Representative Emilio Abaya. The committee’s task is to spur legislation to enable the Philippines to become competitive in today’s global and knowledge-based economy.

Dr. Lee told reporters that the US model of academe alone doing R&D while industry commercialized the results of these research and development efforts might not be viable for the Philippines. For research done in Philippine universities might be too theoretical for Filipino companies to commercialize.

Thus, a separate institution dedicated to applied research and specialized in high technology similar to Taiwan’s ITRI might also be viable for the Philippines, according to him. But he added that the Philippines would have to spend more than the 0.12 percent of its GDP that it allots yearly for R&D.

He noted that Taiwan allots 2.25 percent of its yearly GDP to R&D efforts and this amounted in 2006 to over $15 billion.

In a global and knowledge-based economy, innovation is the key to a country’s and a company’s competitiveness. In turn, innovation is the result of R&D efforts undertaken.

In addition, Dr. Lee explained that the Taiwanese government established ITRI in 1973. However, the institute never ever depended on a budgetary allotment from government for its funding.

Rather, it had and continues to source its funds from revenues for R&D projects that it actively seeks from government and the private sector. Such projects are undertaken to spur creation of new high-technology industries and enable traditional industries to remain competitive through upgraded technologies and processes.

ITRI’s R&D fields include information and communications technology; material, chemical, and nanotechnologies; biomedical technologies; advanced manufacturing systems; and energy and the environment solutions.

Dr. Lee said that such R&D efforts yielded for ITRI in 2007 $560 million in revenues. The amount came from royalties from patents, R&D project fees, and various consultancy services such as laboratory testing, training of personnel and pilot production of new products. Its clients from the private sector included large companies and SMEs.

ITRI’s R&D efforts are credited for Taiwan’s becoming today a major global player in semiconductors, an ascent which began in 1980. It is also credited for Taiwan’s hefty presence in the global ICT products market—having 74-percent share of the global market for notebook computers as an example.

   

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Severino O. Frayna Jr., Benjie Dela Rosa
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