TAIWAN URGED TO FOCUS ON R&D, INNOVATION.

TAIPEI, Jan 2 Asia Pulse - Amid optimistic forecasts by major research institutes for an improved economic situation at home and abroad in 2003, experts and government officials urged Taiwan companies to focus on R&D and innovation to expand their presence in global markets.

Chen Wen-tang, a section chief at the Market Information Center under the Institute for Information Industry, said Taiwan businesses must step up their R&D and innovation at a time when mainland China is quickly emerging as an economic power.

In the face of increased relocations by Taiwan companies to the mainland, including their research teams, the domestic information industry must seek to maintain its lead in technology to survive, he stressed.

Since the global economy is expected gradually to gain strength in 2003, Chen predicted that the production value and output of the domestic industry will surge with double-digit growth rates in the years ahead.

He forecast by 2009, the output values of nine major Taiwan-made information technology products, such as motherboards, digital cameras, servers, LTDs and notebook computers, will account for at least 7.4 per cent of the world's total.

Vice Premier Lin Hsin-i, who also doubles as chairman of the Council for Economic Planning and Development, is also upbeat about the domestic economy in the coming year.

Citing estimates by government agencies, Lin predicted recently that Taiwan's overall economy will improve in 2003, with outbound shipments expanding by 3.52 per cent. He also forecast that per-capita income will rise to US$13,191 from the 2002 level of US$12,851.