The concept knowledge-based economy is initiated and championed by OECD member economies, implying that economic value-added activities should go beyond material-based production. In this regard, there is a policy convergence among major developed countries, which tends to focus on regulatory reform and promotion of ICT applications, human capital mobility, and knowledge networks etc. Taking into account of these factors, this project put forwards a set of knowledge-based economy indicators, being broadly categorized as knowledge capital, innovation capabilities, industrial development, internationalization, ICT applications, and economic infrastructure. The project also discusses four major related issues on R&D and innovation, ICT, framework conditions for industrial development, and human capital. In addition, three extensive case studies on the knowledge-intensive service, biotechnology, and industrial design sectors are presented. Moreover, the project conducts an analysis on the major obstacles and SWOT faced with Taiwan in pursuit of a knowledge-based economy. To conclude the project, policy recommendations are put forwards to Industrial Development Bureau and other government agents respectively.
