Transcript 投影片 1

POLICY FOR SERVICE INNOVATION AND
INTERNATIONALIZATION IN TAIWAN
Sophia Wen-Ching Chou
Agenda
2

Current State of Service Sector in Taiwan

Service Innovation Policy, Instruments and Cases

Internationalization of Service Sector

Conclusion
3
Current State of Service Sector in Taiwan
GDP Ratio of Service and Manufacturing Sectors: 1981-2010
4
80.00%
69.32%
70.00%
67.08%
60.00%
 Nominal Service Sector GDP
Ratio has increased steadily since
80s’, however, It declined recently
From 2008.
50.00%
48.81%
40.00%
30.00%
32.56%
26.27%
20.00%
10.00%
0.00%
服務業占比
Service Sector
製造業占比
Manufacturing Sector
Source: Directorate General of Budget, Accounting and Statistics (DGBAS), Executive Yuan
Note：1.Due to the data formation of the official database, commerce sector is comprised of wholesale and retail trade, accommodation and food services, transportation and storage.
2.Financial sector is comprised of finance , insurance and real estate.
3.Other Services: professional, scientific or technical services, support services, education, human health and social work services, arts, entertainment and recreation and other s.
Service Sector Employment Ratio：2001-2010
5
Since 2001 to 2010, 3% increases in Service sector employment
千人
Thousand
People
6,400
60.0%
6,200
58.87%
6,000
6,051
58.84%
6,174
5,800
58.0%
5,600
57.0%
5,400
5,200
59.0%
55.91%
5,246
56.0%
5,000
55.0%
4,800
4,600
54.0%
2001
2002
2003
2004
2005
服務業就業人數總計(千人)
Service Sector Employment Total
(Thousand People)
Source: DGBAS
2006
2007
2008
2009
2010
Service Sector Employment Percentage
服務業占總就業人數比例(%)
of Total (%)
Year
年
Service Sector Real GDP Growth: 1986-2010
6
Growth
Rate (%)
In comparison to the double digits growth rate during 1986-1990, GDP
growth rate has been closed to a stagnate status in recent years, with the
growth of under 3%.
14%
12%
11.57%
10%
8.74%
8%
6.19%
6%
4%
2.88%
2.91%
2001-2005
2006-2010
2%
0%
1986-1990
1991-1995
1996-2000
年
Year
Source: Directorate General of Budget, Accounting and Statistics (DGBAS), Executive Yuan
Note：1.Due to the data formation of the official database, commerce sector is comprised of wholesale and retail trade, accommodation and food services, transportation and storage.
2.Financial sector is comprised of finance , insurance and real estate.
3.Other Services: professional, scientific or technical services, support services, education, human health and social work services, arts, entertainment and recreation and others.
GDP Breakdown of Sub-Service Sector:
1981-2010
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100%
90%
80%
70%
60%
4.04%
5.45%
7.46%
3.95%
5.09%
10.63%
4.05%
5.54%
4.69%
5.97%
5.51%
6.99%
12.22%
12.64%
11.54%
5.18%
6.98%
10.18%
17.76%
15.36%
14.22%
12.22%
11.58%
10.87%
10.46%
10.84%
12.85%
13.37%
12.37%
12.83%
25.27%
23.26%
22.56%
24.12%
25.25%
27.04%
1981-1985
1986-1990
1991-1995
1996-2000
2001-2005
2006-2010
50%
40%
30%
• Wholesale and
Retail are two
largest sections in
service sector.
20%
10%
0%
Wholesale and Retail Trade
GG批發及零售業
P
Education
P 教育服務業
Other Services
S S其他服務業
RR藝術、娛樂及休閒服務業
Arts, Entertainment and Recreation
Real Estate
L L不動產業
J
Information
and Communication
J 資訊及通訊傳播業
Professional, Scientific and Technical
MM專業、科學及技術服務業
Public Administration and Defence
O O公共行政及國防
H
Transportation
and Storage
H 運輸及倉儲業
I Accommodation and Food Services
I 住宿及餐飲業
Finance and Insurance
K K金融及保險業
Q
Human Health and Social Work Services
Q 醫療保健及社會工作服務業
Support Services
N N支援服務業
Services
Source: DGBAS
Note： Sub-service sectors do not includes import duty and VAT, which the add-up of sub-service sectors of the total proportion of GDP is less than 100%
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Service Innovation Policy, Instruments
and Cases
Key Focuses of Service Innovation
9

Technological Application


Cross-Industry Integration


Information technology and technological application integration will
help to promote and upgrade the Service sector and its innovation. Thus,
to increase the global competitiveness by improving service quality,
safety and speed.
Cross-industry consolidation has become the new industrial development
trend, such as integration of tourism and culture &creative industries; the
integration of medical and tourism. The cross-industry integration will
have synergistic effects and to formed new industries types, new types of
work and opportunities.
Internationalization

International expansion to new markets can assist firms to acquire new
consumer trend for diverse consumer experience and to improve
operational growth.
Issues and Problems of Service Innovation in Taiwan (1/3)
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Issues and Problems
Impacts
Firms are lack of capacity for innovation
Difficult to obtain “information” needed
for service innovation;
Decision makers have not yet recognized
the importance of innovation
Firms are weak in “innovative culture
and mechanism”;
Few angle investors, venture capital
investors who can provide “funds and
consulting assistance”;
Limited to the local market, firms are not
motivated to invest in R&D and innovation.
Lack of information and other
infrastructure support for innovation：
to form a multiple and creative service
is difficult
Insufficient funds and ability for
continued business expansion：to
achieve large-scale internationalization
process is difficult for firms
Source: CDRi
Issues and Problems of Service Innovation in Taiwan (2/3)
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Issues and Problems
Impacts
Innovation is hard to protect and
preserve
Innovations in Service sector are
mainly evolved through “incremental
process”
Service innovation is through
personal experience or accumulated
“business know-how”, it is a challenge
for a firm to retain such knowledge.
Service innovations are likely to be
invisible, public”, it is hard to apply for
Intellectual Property (IP) protection;
Low innovative motivations in
Service sector
Lack of innovation initiatives and
pioneers in Service sector
Source: CDRi
Issues and Problems of Service Innovation in Taiwan (3/3)
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Issues and Problems
Impacts
Service innovation and
entrepreneurship supports from
Government are inconvenient to
access
Lack of a single channel to access the
Government’s “information and
resources” regarding service
innovation;
Application and administrative
procedures of innovation policy
instruments are not fit into service
firms’ operational needs.
Difficult for firms to gain
resources：grants, incentives,
tax incentives and other policy
measures from the Government
and relevant government
subsidies, etc.
Source: CDRi
Key Service Innovation Policy Instruments in Taiwan
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Grant
Technology
Counseling
Assistance
Service
Innovation
Policy
Instruments
Award
Loan
Tax
Deduction
Source: CDRi
Assist Service Sector Technology Development(ASSTD)
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
Why:

Grant

How:

Technology
Counseling
Assistance

Service
Innovation
Policy
Instruments

Source: CDRi
The funds can be used in areas such as, adopt
new service products; new business models; new
marketing models or new technology innovation
for business applications.
Applicable types of business:

Tax
Deduction
Up to NT$2.5m per year per project (US$83,000
@NT$30=US$1)
What:

Loan
Award
To encourage businesses to invest in developing
new business models and service products.
Wholesalers, Retailers, Logistics, Food,
Management consultancy, International trade, Ecommerce, Exhibition, Advertising, Commercial
design, Franchising and etc.
Case of ASSTDIntelligent Service Innovation of Taiwantaxi
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Needs for taking taxi
Consumers
ASSTD
Taiwantaxi
Get the order and best
decisions of resources
Contact with the system
Consumer Value
•More friendly
and time-saving
services
•Personalized
service model
•Safer trip and
reduce traffic time
Intelligent System of Taiwantaxi
Combined the Speech Recognition and
Interactive Voice Response technology and
provides the innovative service which is more
convenient and time-saving
Fast and Reliable Services
Source：Taiwantaxi (2011), adapted by CDRi
Assist Taiwantaxi for
service innovation
To apply the system and
integrate the innovation
service into the system
Enterprise Value
•High efficiency and
effectiveness
•Cost saving
•Innovative and
intelligent service
model
Small Business Innovation Research (SBIR)
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
Why:

Grant

Counseling
How:

Technology
Assistance
Service
Innovation
Policy
instruments

Loan
Award

Source: CDRi
Based on the firms’ innovative R&D
technologies, products or services. A single
company can apply grants for R&D of 50%
maximum of the total investment. Maximum
funding is NT$10m (US$0.3m @NT$30=US$1)
in 2 years.
What:

Tax
Deduction
To raise the innovative capacity via technology or
product R&D for the small and medium-sized
firms.
Contribute to the industrial development with
establishment of a knowledge creation model,
value-added service platform or other core
knowledge, systems and such.
Applicable types of business:

No specific requirements

Apply through a single firm, or in a form of
alliance with 3 companies or more.
Case of SBIR -MissCare
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Pregnant
women
SBIR
Old women
without
menses
Young women
with menses
Female
Users
Receive personalized
health management
service
The Zi Jing
Tang Corp.
MissCare-The system of
Women Health Management
Personalized health management system
and web platform for users, to provide
suggestions and reminders about women
health according to personal condition
User Value
•Personalized health
management service
•Save the works that
users usually have to
study about healthcare
Other firms of service or products
Provide other professional service or products
about health e.g. healthcare foods
Source：Miss Care (2011), adapted by CDRi
Design dedicated ICT
service system
Enterprise Value
•Provide personalized
innovative healthcare service
•Long-term services (from
18yr-60yr of a women)
Internet Service Development in New Era Program
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
Why:

Grant

How:

Technology
Counseling
Assistance
Service
Innovation
Policy
Instruments


Tax
Deduction
Source: CDRi
Provide counseling and promotion to support
the internationalization of Taiwan’s innovative
ISP and software firms.
What:

Develop successful new generation internet
services model

Promote international e-commerce opportunities
for industries.
Loan
Award
To set off new generation internet services, with
practical applications for innovative ideas.
Who:

No specific requirements

Any innovative entrepreneurs
The case of the “Internet Service Development in
New Era Program”- “Map Diary”of atlaspost
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Internet
Users
Provide users the internet sharing
service of photos and texts on the
digital map
User Value
•To interact with other
users for this website
•Linkage between virtual
and real lifestyle
Source：Map Diary (2011), adapted by CDRi
Internet Service
Development in New
Era Program
Atlaspost
Design the system and
provide service
“Map Diary”-The Platform of
Map and Share
The internet platform “Map Diary”
combines the maps /
(geographical )life cycle and the
internet services such as photo
album, message board, and
homepage to make linkage of users’
virtual and real life
Enterprise Value
•Provide a free and easy
platform based on the map,
which makes users share their
lifestyle
•Acquire loyal users
•Identify precise information of
users and clusters, and to
target the user with precise
regional preferences. This
would increase the value for
advertisements
•Service integration to smart
phones
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Internationalization of Service Sector
The Relationship between Service Innovation and
Internalization
21
“Innovation" and “Internationalization" are the two strategies for the
industry and the Government to enhance the productivity and
international expansion, thus, to create value and achieve business
goals.
Source: CDRi
Vision and Strategy of Service Innovation and
Internationalization
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Vision
To create a value-added Service Industry, with parallel effect to create jobs,
improve the quality of life and act as an engine for economic growth
Strategy
To expand opportunities and value of
Service Industry
Strategic
Dimension
Government Support
• Technology
Application
• Service Process
Improvement
• Transaction Form
Innovation
• Consumer Needs
• Forerunner
Experiments of
Consumer
• Cross-industry
Interaction
• Deregulation
Source: CDRi
Enterprise
Reinforcement
Enterprise
Reinforcement
• Applying
Technology to
Innovate Service
Process
• Exploring and
Satisfying Potential
Needs
• Developing New
Business Types
• Entering International
Markets and
Integrating Enterprises
with Other Industry
Clusters
• Developing
Multinational Brands
or Channels
Government Support
• Supporting
Enterprises to
Grasp Information
of International
Markets
• Reduce Enterprises’
Barriers to Oversea
Markets
• Supporting Service
Enterprises to
Integrate and
Advance Their
Supply Chain
Service Sector Internationalization
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 The establishment of networking resources should be
emphasized in order to assist the Service sector enter
international market.
Internationalization development in Service sector
Enter to
Int’l
Market
Build Int’l
Knowledge
食
育
Research and Seek
for New Markets
Source: CDRi
行
樂
衣
住
Promoting Service Sector Internationalization in Action
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Operation
Research
Front Stage：
Consumer Interaction Management
Technology
Process
Middle Stage：
Process Integration Management
Backend Stage：
Service System Management
Source: CDRi
Alliance Networking Platform
25

Research has found that
“service networking” allowed
the participated firms
effectively to gain knowledge
and to increase their
capabilities for overseas’
development. Our goal of the
“ANP” are:
 Customer One-Stop Solution
Service Design
 Process
Standardization
 Interdisciplinary service
reformation
Source: CDRi
CDRi Networking Platform for
International Service Sector
Industry Research
in Domestic and
International
Service sector
Overseas
Market
Research
Technology
and
Application
R&D for
New
Service
Model
CDRi
Innovation
Research
Talent
Nurturing
for Service
sector
Planning for Alliance Members and Interactive Sharing Platform
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 To
provide research findings in international research;
 To offer overseas’ local trade data and analysis;
 To consolidate published market research data from
public associations
 To supply a one-stop information service for all
alliance members
Organizing Alliance Networking Platform participants
27



A number of navigators is needed to assists in promoting necessary supports
for the Service sector;
Professional experts in the field of logistics systems, personnel training,
language and culture are invited. They are here to provide solutions and
comments for other immature and small businesses when entering to a new
market;
Current plan is to find appropriate navigators whom are familiar with the
markets in China, Singapore, Malaysia and Thailand etc.
Entry
Mode
Source: CDRi
Survive
Grow &
Evolve
Alliance Networking Platform - Participants
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Marketing Research Firms
(ACNielsen, GfK Group,
Lippincott Mercer etc.)
Supporting Services
Providers
(Management Consulting,
Venture Capital, Local Experts
etc.)
Government and Bureaus
(MoEA, MoIA etc.)
Think Tanks & Associations
(ITRI, III, Taiwanese
Chambers of Commerce
etc.)
Source: CDRi
Promoting International Research Alliance
29
 Combined
resources and collaborations from domestic
and international public associations, think tanks, local
marketing research firms, suppliers and service
integrators, etc. for international market development.
The feed back of such experiences returned for further
Government policy making.
 CDRi, under the supervision of MoEA is keen on
acting as the bridge between the Government and the
Industries. This is where CDRi plays an important role
in the overall ANP planning.
Collaborating with International Consultancy Firms
30
 International
collaboration with consultancy firms and
other leading research institutions is needed in order to
gain any necessary knowledge for international
expansion.
 To leverage experience through organizing regular
conferences and forums in order to share the research
outcome, which would reinforce the research capacity
and operational knowledge.
Collaborating Cross-border Service Providers
31
 To
gain the necessary information of overseas’
local experts and to configure a product, a
business model that can be fully adopted to the
local market.
Example：To know the Japanese aesthetic
design elements to promote a much refined
service experience
Holding Regular Conferences and Forums
32
 To
exchange ideas with international
consultancy firms and industrial players.
 In-depth discussions on topics include: service
localization; sustainable development; local
laws, regulations and restrictions; taxation
issues.
 To share practical experiences and research
findings for all alliance members.
33
Conclusion
Conclusion
34



Many of the innovation policy instruments should further
strengthen the relations between each involved parties in
order to create synergies.
More non- technological supports are needed for the
Service Sector innovations, especially for small & medium
business.
Strong encouragement for international expansion, to
increase international competitiveness and to accumulate
experiences for new business models and innovations.
35
Thank you!