Technology Transfer in Taiwan Taiwan’s approach to technological development and technology transfer is a success story In Taiwan, industrial technology R&D is enhanced by a non-profit corporation known as the Industrial Technology Research Institute (ITRI) This institute conducts technical R&D on targeted projects directed and funded by contracts from the Ministry of Economic Affairs, a central government agency The research results are then applied to assist or guide the private sectors either through technology transfer or technology expansion Taiwan has located ITRI next to two of its top universities in science and technology: the National Tsinghua University and the National ChiaoTung University A targeted project for technology transfer can draw upon the scientific and technological expertise of the faculty of these two fine institutions The participation of the private sector through the investment and business planning of industrial facilities completes the team of players needed to spur industrial development To facilitate the transfer further, an industrial park is located in close proximity to permit a project incubated in ITRI to be spun off to a privately owned facility in the industrial park Such collaborations among government agencies, nonprofit corporations and private industries have been very successful in transferring industrial technologies within Taiwan, especially in areas of high risk or crucial importance Taiwan also relies heavily on its well educated nationals who are trained overseas Incentives are provided to induce them to return home, thereby bringing technology to Taiwan Technology transfer through people is a very effective transfer mechanism Examples of technologies successfully transferred are integrated circuit manufacturing, personal computers, and automation technologies (Chen, Y.Y 1990, “The technology derivation mode for enhancing the transfer of industrial technology research and development in Taiwan”)