Measures for Promoting RD Investment in （促进研发投资的措施）.pdfVIP

May 2005 Vol. 12 No. 1 Measures for Promoting RD Investment in Taiwan by Multinationals Meng-chun Liu, Shin-horng Chen, Yuh-jiun Lin Responding to the globalization of production and markets, multinationals have begun to adopt more aggressive international RD strategies, especially since the 1990s. The shortening of product life cycles due to more intense market competition has forced multinationals to relocate parts of their RD operations overseas, where they can access resources that may include lower labor costs for RD personnel or technology that is not readily available in their home country. The purpose of this project is threefold. Firstly, we look at the overall trends in multinationals’ international RD activity, and the special characteristics of this activity. Secondly, we analyze the strengths and weaknesses of the Taiwanese RD environment, and explore the barriers that have discouraged multinationals from locating RD in Taiwan. Finally, drawing on the above findings, we hope to suggest some policy measures for the government to encourage multinationals to upgrade their local RD functions into regional mandates. Through a questionnaire survey, interviews with foreign companies, and the use of government databases, this study outlines the solid production management capabilities (deriving from Taiwanese industry’s extensive experience with OEM production) as the main locational advantage encouraging multinationals to locate their regional RD centers in Taiwan. The functions of RD centers in Taiwan include product and production process innovation; the centers also function as bases for regional training an