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::: Incubator Prospective |
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I、 Taiwan ' s Incubation Policy |
| Recognizing the growing importance of innovation and entrepreneurial activity in the new era of the knowledge economy, in 1996 the Small and Medium Enterprise Administration of the Ministry of Economic Affairs (MOEA) took the lead in fostering the development of incubation centers in Taiwan . The Administration devised three core strategies, focusing on Incubation Centers , Entrepreneurial Knowledge and Information, and Financing Support for Start-ups. These three strategies were to form the basis for the creation of an SME incubation platform; helping Taiwanese start-up SMEs to obtain the guidance and support they needed in the areas of technology, knowledge, funding etc. The goal was to build up a start-up learning mechanism that would contribute to the development of a knowledge-based entrepreneurial society and to the promotion of the incubator sector. |
The Ten Key Individual Plans making up the Challenge 2008 National Development Plan included the Global Innovation and R&D Base Plan. One of the elements in this Plan was the establishment of various types of innovation and R&D centers, with a sub-plan for developing Taiwan into an “ Asia Entrepreneur Center ”. The main objective was to build up a high-quality incubation center network that would stimulate start-up and innovation activity, strengthen the competitiveness of Taiwanese industry as a whole, and promote economic growth. |
To establish an SME start-up and innovation development mechanism under the Asia Entrepreneur Center framework, the Small and Medium Enterprise Administration of the MOEA set three major strategic objectives: to establish an incubation center network that would strengthen the incubation of start-ups in Taiwan; to build up a start-up knowledge and information platform that would stimulate the development of a knowledge-based entrepreneurial society; to establish sound, effective financing channels to stimulate investment in start-up activity. It was anticipated that the creation of first-rate innovation and start-up mechanisms would facilitate the cultivation of innovation-oriented enterprises, provide entrepreneurs with access to the resources they need at different stages of the business development process, and make possible the development of a high-quality start-up incubation environment.
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II 、The Current Status of Incubation Centers in Taiwan |
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At present, the majority of incubation centers in Taiwan are affiliated to universities. The Ministry of Economic Affairs has been encouraging research institutes and the private sector to invest in the incubator sector, and has drawn up strategies for integrating the different resources and strengths of those incubation centers run by universities, those established by research institutes , those administered by the government and those set up by private companies. The overall goal is to provide a comprehensive set of incubation services to cover every stage of the SME development process. |
Since 1996, the Small and Medium Enterprise Administration of the Ministry of Economic Affairs has been using the SME Development Fund to encourage both public agencies and private sectors to set up SME incubation centers. So far, a total of 79 SME incubators have been established in northern, central, southern and eastern Taiwan . If one adds in the Nankang Software Incubator, SME Incubator at Tainan Science Park and the Nankang Biotech Incubation Center , all of which have received investment from the SME Development Fund, then the total number of incubation centers rises to 82. Then there are the incubation centers set up by other government agencies or by the private sector, which bring the total up to 95. Details of the location of these incubation centers and their main orientation have shown as the figure below. |
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Definition of Core Areas:
Local Cultural Characteristics:
Incubate industries with local characteristics, with “local” pertaining primarily to the countryside, towns and cities. A characteristic industry refers to a local industry with historic, cultural or other distinctive or unique qualities. Advise industries with local characteristics in terms of their community or organization on enhancement of space design, landscape design and planning and organizational management as well as assistance with product package design, product R&D and design and production technology.
Strategic Knowledge Services:
The chief incubated companies include those in financial services, logistics and transportation services, telecommunications and media services, medical, health and personal care services, human resource training services, manpower allocation and property management services, tourism, sports and recreational services, cultural and creative services, design services, information services, R&D services, environmental protection services and engineering consulting services.
Innovative Traditional Industries:
The chief incubated companies are all non-tech industries, including agriculture, forestry, animal husbandry, mining and quarrying, textiles, chemicals, food, beverage processing, food and beverages, metal and electrical industries, construction, shoe-making and related industries, glass and ceramics, papermaking and printing transportation and warehousing.
Advanced science and Technology Industries:
The chief incubated companies include those in digital 3C, precision electronic components, precision machinery, aerospace, bio-medical and special chemicals, green technologies and high-end materials.
Multi-incubation: The chief incubated companies are in a wide range of fields. |
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III、Incubation Centers – Definitions, Objectives and Functions |
| Definitions
Incubation centers are locations for the cultivation of innovative businesses, products and technologies, and for helping SMEs to upgrade and transform themselves. By providing start-ups with office space, instruments, equipment and R&D technology, helping them to secure financing, and by providing management consulting and other business services, they facilitate the effective integration of resources, helping to reduce the costs and risks that start-ups have to bear in the early stages of business development. By providing an excellent incubation environment, incubation centers increase the likelihood that a new business will be successful. |
Objectives
The objective behind incubation center establishment is to foster the growth of soundly run, competitive SMEs, and to help existing SMEs to upgrade and transform themselves, re-orienting themselves towards the production of high-value-added products, so that they can make a significant contribution to Taiwan 's economic development alongside larger enterprises.
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Functions
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To reduce the expenses of investment, and the level of risk involved, in the establishment of new start-ups and in the development of innovative technologies and products, thereby increasing the success rate for entrepreneurs and innovators. |
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To assist in the implementation of industry cultivation plans and in the development of new technologies and new products. |
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To provide guidance with respect to the commercialization of new products. |
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To provide a venue for collaboration between industry, universities and research institutes. |
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To provide testing services to speed up the process of product development. |
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To provide enterprises with consulting services in the areas of manpower cultivation, financing, information provision and operational management. |
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Ⅳ、Services Provided by Incubation Centers |
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Space and facilities
1. Provision of office space and facilities
2. Provision of shared laboratory equipment, machinery, instruments and public facilities
Business support
1. Provision of operational consulting services
2. Specialist training, including practical, hands-on training
3. Assistance with PR, exhibitions and advertising
4. Provision of financing information and introductions to venture capital firms
Administrative support
1. Provision of shared secretarial and administrative services
2. Assistance with company registration, business registration and factory registration
3. Provision of guidance for business plan preparation
4. Assistance with applications for guidance programs
5. Assistance with the drawing up of contracts and agreements
6. Software and hardware management and maintenance
7. Building security management
Technology and manpower support
1. Provision of high-quality, expert manpower
2. Technology transfer services
3. Arranging collaboration and alliances with technology development institutes
4. Technical manpower support
Information support
1. Arranging the provision of specialist consulting services
2. Provision of information and advice regarding government guidance systems and
government policies
3. Assistance with the collection of industry, market and technical information
4. Facilitating collaboration with industrial associations, specialist academic associations,
local industry promotion associations and other organizations
5. Promoting the formation of strategic alliances, and encouraging collaboration between
start-ups in the areas of marketing, market development, distribution, financing etc.
6. Promoting the development of collaborative relationships with local industry
7. Provision of information relating to science-based industrial parks and industrial districts,
including application procedures, to help start-ups establish themselves in a science-based
industrial park or industrial district after “graduation” from the incubation center |
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V. Prospective |
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Looking ahead to the future of global competition, innovation will be a key element driving the international economy forward. How to stimulate business development and build an economy based on entrepreneurialism has been a key direction of Taiwan's global strategy. The incubation centers developed so far have moved in the direction of industrial specialization. Through construction of incubation platforms, the SMEA aims to promote the concept of strategic economic development, which has been implemented in the “Construction of an Entrepreneurial Incubation Platform”, “Development of an Incubation Information Platform” and “Assistance with Venture Capital”. To enhance the effectiveness of business startups, in 2006, the SMEA initiated the “Incubation Center Knowledge Service Environment Construction Project” to facilitate efficient utilization of knowledge and resources through resource centralization and distribution and by maximizing the effectiveness of knowledge services provided by the incubation centers.
In the future, incubation centers will not only provide “knowledge management”, “value-added intellectual property” and “resource integration” as a diverse range of services but will also continue to move toward the following four goals.
1. Incubation of Key Talent – Establishment of Professional Services and Incubation
Support Centers
2. Incubation of Professionalism – Development of Potential Characteristics and Key
Incubation Centers
3. Incubation of Internationalism – Strengthening the Ability of Incubation Centers and
Businesses to Internationalize.
4. Externalization of Services – Increase Incubation Centers' External Services to Increase
the Centers' Income.
As incubation centers enter the new age of the knowledge-based economy, they must select target businesses that have potential for the global market and integrate resources to provide excellent environments and consulting support for domestic and foreign businesses. Also, incubation support centers must provide intellectual resources and planning services for startups to help establish organizations with innovative and special qualities that can succeed amid the tests and challenges of this new era. |
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