Department of Economic Development

In recent years, due to the increasing pace of internationalization of enterprise, competitive conditions have become harsher and harsher. Facing competitive pressure from the EU, NAFTA, ASEAN, APEC, and other individual emerging economies, how Taipei City can keep growing, and make use of the city's core competencies to avoid being marginalized, are important issues that the government and the public need to consider.

Taipei is located in the economic and trading center of the Asia-Pacific region. It has close relationships, both competitive and cooperative, with neighboring major cities. As globalization and regional economic development converge, industrial development and trade led by major cities in the region are emerging as important engines of regional economic growth. Therefore, to drive economic development, Taipei City must promulgate an effective and efficient industrial development policy to improve the investment environment for businesses.

According to the Taipei City Office of Commerce, as of the end of 2007 there were 219,582 firms and companies registered in Taipei City. Among them, 170,411 are in the tertiary sector (service industry), accounting for 77.61%. 47,568 of them are in the secondary sector (industry), accounting for 21.66%. As for the primary sector (Agriculture, Forestry, Fishing and Animal Husbandry), the number of companies is 1603, accounting for 0.73%. Reviewing the registered capital of all commercial activities at different levels of industry in Taipei City in 2007, the capital concentrated in the service industry accounts for 66.92%. The industry sector ranks in second, accounting for 31.76%. Agriculture, forestry, fishing and animal husbandry make up only 1.32%. These figures show that economic activity in Taipei City mainly falls in the service sector. The city's industrial structure has gradually transformed one characteristic of mature cities, and is transitioning to a knowledge-based economy. As a result, only by developing knowledge and creativity can industry continue to evolve and grow.

The competitiveness of Taipei City is based on our nation's position in the global value chain. We should explore our core competency and learn from the development experiences of other international cities in order to find Taipei's niche and chart a course for development in the global system. Compared to other major cities in the Asia-Pacific region, the advantages of Taipei City include extensive infrastructure, high-quality human resources, excellent geographical location, vigorous local economic activities, and role as hub of the Chinese creative industry. However, Taipei also suffers from several disadvantages, especially caused by Taiwan's special political relationship with China and by Taiwan's international status, which acts as a block to full regional economic integration. Additional limitations include the lack of an international airport and harbor, as well as high population density, and limited land resources, which may pose problems for future industrial development.

Taipei City Industry Development Policy is promulgated in view of overall environmental conditions at home and abroad and local development advantages and characteristics. The policy will boost knowledge-based core competitiveness. The vision is to make Taipei City the Asia-Pacific Regional Operations Pivot. We position Taipei City as a center for commercial development, technological innovation, human resources training, and industry incubation, in order to achieve the city's ultimate goals: industrial innovation, high volume of city tourism, and vigorous investment.

Industrial policy involves many factors, such as regulation, land resources, human resources, capital, infrastructure, and so on. Development of specific industries such as farming, the manufacturing industry, and the service industry must be also taken into account. In addition, the policy must be globally-competitive. Therefore, this policy is market-oriented, innovation value-added, and tourist- marketing-oriented. It has three strategic goals. The first is to improve the city's development functions and establish an excellent business environment. The second is to promote development in key industries and create new opportunities for industrial growth. The third is to demonstrate the appeal of the city and attract tourists and foreign investment alike. Through 10 development strategies, the policy promotes knowledge-intensive and technology-intensive services, including innovation, R&D, design and marketing, and seeks to establish Taipei as an attractive international tourist destination.

Facing new economic reality and growing competition between cities, the Taipei City Government hopes to efficiently integrate and make the best use of limited resources in order to strengthen city infrastructure and increase the efficiency of land use. Efforts will be concentrated in 16 key areas, including information consulting, featured businesses, catering, leisure farming and gardening, biotechnology, the cultural and creative industry, conferences and exhibitions, health care, leisure sports and recreation, tourism, the "green" industry, the pet industry, the construction industry, the metro system, people's livelihoods, and traditional markets, thereby demonstrating the appeal of the city and attracting tourists and foreign investment and elevating Taipei City's status in the global arena.

Strategic Goal 1：Enhance the business environment -- Improve the city's development functions

In order to improve infrastructure and public services for city residents, industries, and tourists, eliminate barriers to investment, encourage investment and innovation, increase the space for industrial development and becoming an industry hub, this strategic goal includes four development strategies: strengthening international-level infrastructure, improving the efficiency of land use, promoting industry hub function and innovation, and developing entrepreneurship and investment services.

Strategic Goal 2： Strengthen industry-Promote development of key industries and create new opportunities for industrial growth

In order to both invigorate traditional industries and develop emerging industries, promote high value-added knowledge industries and industries which improve quality of life, this strategic goal includes four development strategies: featured industries with local characteristics, pillar industries connected to international markets, emerging industries with LOHAS (Lifestyles of Health and Sustainability) concept, and high-quality and convenient livelihood industry.

Strategic goal 3：Increase and demonstrate the appeal of the city, attracting tourists and foreign investment

In order to highlight the city's distinct features and market the city's brand image, this strategic goal includes two development strategies: building tourist attractions, and marketing the city and increasing international exchange.