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* Taiwan Tops World in Industry Cluster Development
The development of high-tech industry has obviously reached maturity in Taiwan. According to the World Economic Forum’s “2007-2008 Global Competitiveness Report,” Taiwan has again taken first place in the world in the “State of Cluster Development” index.
With the government’s vigorous promotion of the industrial strategy of “Two Innovations” (technological innovation and brand innovation) and “Two Highs” (high-tech intensive and high value-added), the competitiveness of Taiwan’s industrial clusters has continuously strengthened. Taiwan placed second in this index in 2004 through 2006, and in 2007 it moved up to first place in the world. Taiwan’s score for the “State of Cluster Development” index rose from 5.52 points (out of a possible seven points) to 5.7 points, making the island a model of industrial cluster development for the whole world.
It is not only Taiwan’s high-tech industries that are developing clusters; traditional industries such as local culture, handicrafts, and art are doing it too. Taipei, for instance, has digital content and ceramics clusters; Hsinchu has optical disk, automobile, and glass clusters; Taichung has bicycle, precision machinery, and musical instrument clusters; Changhua has knitted hosiery and bicycle clusters, and Tainan has TFT-LCD, IC, and knitted sweater clusters.
To meet global trends in competition and changes in Asia’s industrial division of labor, Taiwan will not only continue cultivating technology industry clusters but will also speed up the development of traditional local industry clusters so as to enhance regional economic growth and create job opportunities.
 
WEF Ranking of the Competitiveness of Industrial Clusters
 
2007-2008
2006-2007
2005-2006
Score
Global Ranking
Score
Global Ranking
Score
Global Ranking
Taiwan
5.7
1
5.52
1
5.39
2
United States
5.3
2
5.22
2
5.19
4
South Korea
5.1
3
4.19
31
4.38
21
Singapore
5.1
4
4.92
7
5.15
6
England
4.8
9
5.06
4
4.63
14
Germany
4.8
10
4.90
8
4.45
17
Finland
4.8
11
5.07
3
5.33
3
Japan
4.7
12
4.33
27
5.46
1
Switzerland
4.7
13
4.67
15
4.31
23
Hong Kong
4.7
14
4.75
12
4.68
11
Italy
4.5
21
3.19
85
5.16
5
Source: WEF; compiled by the Council for Economic Planning and Development
 
 
 The issue date:2008-02-04  
     
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