The Decline of Taiwan’s Develpomental State? The Transformation of Relations between ITRI and Semiconductor Industry (1974-2014)
Date Issued
2015
Date
2015
Author(s)
Chiu, Yi-Ruei
Abstract
The Developmental State theory aim to describe the model of emerging countries of East Asia, emphasizing the role of the state as a key factor in promoting economic development and industrial transformation. In order to develop industry, State must have strong enough capacity and autonomy to intervene the market, and attempt to build the appropriate links with enterprises under the guidance of the economic bureaucracies. Until the 1990s, Taiwan presented the characteristics of a typical developmental state, from export processing zones, high-tech science park and then to foster the semiconductor industry, successfully create a highly economic growth miracle. In industrial upgrading of the developmental state, Pilot Agency and National Public Research Institutes plays a very important role, public research institutes must meet the needs of state policies, mobilizing national forces to introduce industrial technology from outdise, and try to do the independent research by ownself to catch up with the advanced countries. Industrial Technology Research Institute of Taiwan (ITRI), established in 1973 , is the most important public research institute in Taiwan, it plays R&D institution, policy implementers, industrial cooperator and other multiple roles for the past 40 years. However, as the late 1990s, Taiwan is facing a wave of globalization and democratization, state must make appropriate policy adjustments based on changes in this situation, to respond the challenges from internal and external, timely transformate the role and status of the state in the process of industrial upgrading and transformation. In my thesis, I want to discuss the transformation of relationship between the ITRI and the semiconductor industry in Taiwan, observing the adjustment and transformation of Taiwan developmental state by this case, as the consolidation and strengthening research capabilities of private enterprises, whether the ITRI ‘s role has been not important in the semiconductor industry? whether the state has no longer has enough capacity and autonomy to support key industries? My thesis want to view the characteristics of Taiwan developmental state is still exists or not, and how should the state try to response those challenges. My thesis found that the characteristics of Taiwanese developmental state is declining, even though the state and industry interaction has been converted to partner collaboration platform, reflecting the self-adjustment capacity of developmental state, but after about ten years platform transformation, in fact that state had not achieved it’s anticipated goal, the enterprises in Taiwan does not make a breakthrough in R&D and innovation, even though technocrats in ITRI still has its mission to promote high-technology research, refleceting the strong will of the developmental state, but in the situation of short-term business competition for priority consideration, many companies does not want to cooperate with ITRI in high-end R&D, but also doesn’t want to buy related patents from ITRI, causing ITRI perform ineffective in recent years, and due to the difficult situation of national budget resources, ITRI need to sell its patents to foreign companies in order to raise financial resources, then losing the autonomy of developmental state to support the domestic enterprises. In the wave of neo-liberalism, the sizes of Taiwan semiconductor enterprises has become large-scale and consortiums, comparing to state’s capacity, enterprises already has enough bargaining power to lead the industrial policies. As the extension institute of the developmental state, the autonomy and capacity of ITRI is withering and decling, the result is Taiwan developmental state facing difficulties of unsuccessful transformation in today.
Subjects
Developmental State Theory
ITRI
Semiconductor Industry
Industrial Policies of Taiwan
Globalization
Democratization
Type
thesis
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