I. Overall economic situation

Starting from 1949,

The economic development of Taiwan Province Province has roughly experienced four periods:

(1) economic recovery period (1949- 1952). At that time, Taiwan's population soared, prices soared, industrial and agricultural production almost stopped, military spending accounted for more than half of fiscal expenditure, people's lives were difficult, and the economy was on the verge of collapse. Therefore, the authorities of Taiwan Province Province have adopted a series of policies and measures aimed at stabilizing society and restoring economy, such as land reform, currency reform and foreign exchange trade control, giving priority to the development of electricity, fertilizer and textile industries. In 1950s, agriculture in Taiwan Province Province developed rapidly, with an average annual growth rate of 4.7%. In addition, from the second half of 1950, the United States began to provide economic assistance to Taiwan Province Province, injecting a large amount of funds to help Taiwan Province Province recover its economy. By 1952, the economy of Taiwan Province Province basically recovered to the highest level before World War II.

(2) The development period of agricultural auxiliary workers (1952- 196O). At that time, the economy of Taiwan Province Province was mainly based on agriculture, with a surplus of labor, a serious deficit in foreign trade and international payments, and an extreme shortage of foreign exchange. Because of low income, people cannot consume imported industrial products. Under the guiding ideology of seeking development through stability, the Taiwan provincial government has determined the policy of supporting industry through agriculture and promoting agriculture through industry. The land reform has promoted the improvement of agricultural labor productivity, and the proportion of agricultural products and their processed products in the total export is very high, reaching 7 1.957 and becoming the main force of foreign exchange earning. The authorities of Taiwan Province Province also made profits through unequal exchange methods such as exchanging fertilizer for grain and compulsory acquisition, and transferred them to the industrial sector. In terms of industry, the focus is on the people's livelihood industry with less capital demand, low technical requirements and short construction period. Domestic substitution of imports can adapt to the consumption level on the island, save foreign exchange expenses, create more employment opportunities and reduce employment pressure. It has formed the processing industry of agricultural and sideline products such as sugar, tea, pineapple and citronella oil, and the import substitution industries such as cement, glass, wood products, paper making, fertilizer, textile, edible oil, flour, plastic raw materials and products, man-made fibers, bicycles, sewing machines and household appliances.

(3) the development period of export-oriented economy (1960- 1986). Due to the small market in Taiwan Province Province, the market for imported products of alternative industries was saturated at that time. If it continues to develop, it will lead to insufficient economic stamina. Taiwan Province Province seized the opportunity of the change of international division of labor at that time, took advantage of the international comparative advantage of low wages, vigorously developed the processing and export industry and promoted economic development, and successively revised or formulated policies and measures aimed at promoting exports, such as reforming foreign exchange trade, implementing the Regulations on Encouraging Investment, encouraging private savings, giving preferential tax and financing to exporters, and setting up export processing zones and bonded warehouses. During this period, foreign capital played an important role in the industrialization and export expansion of Taiwan Province Province, and private enterprises turned from import substitution to export industry, becoming the main force of economic growth. Enterprises in Taiwan Province Province import means of production from Japan and export industrial products to the United States, forming a triangle trade relationship that depends on Japan in production and the United States in the market. Taiwan Province's industry is developing at a high speed. From 1963- 1973, the average annual growth rate of industry was as high as 18.3%, of which the average annual growth rate of manufacturing industry reached 20. 1%, and the proportion of industrial output value in GDP increased from 26.9% in 1960 to/kloc-. The proportion of industrial products in export trade rose from 32.3% in 1960 to 84.6% in 1973. So far, the industry in Taiwan Province Province has established an industrial pillar based on export processing zones and centered on textile, household appliances and other processing industries, which has promoted economic development.

(4) The period of economic transformation (1986). Since the 1980s, due to the changes in the economic environment inside and outside Taiwan Province Province, the exchange rate of NT$ against the US dollar has greatly appreciated, and the wages have also risen sharply. The labor-intensive processing and export industries have gradually lost their comparative interests and advantages, which has led to the low willingness of private investment and economic development in trouble. Therefore, in 1986, the authorities of Taiwan Province province put forward the liberalization, internationalization and institutionalization of economic transformation, further improved and perfected the market economic mechanism, took industrial upgrading and expansion of foreign trade markets outside the United States as the main adjustment contents, and identified ten emerging industries such as communications, information, consumer electronics, semiconductors, precision instruments and automation, aerospace, advanced materials, special chemicals and medicines, medical care and pollution prevention as pillar industries. After nearly 10 years of economic transformation, the economy of Taiwan Province Province has made some progress in liberalization and internationalization, and the industrial upgrading has also achieved initial results. At present, the proportion of capital and technology-intensive industries in manufacturing industry has reached 6 1.5%, among which the development of information industry is particularly prominent, and its output value has been among the top in the world. The focus of Taiwan Province's export market has gradually shifted from Europe and America to Asia. The proportion of exports to the United States decreased from 48.8% in 1984 to 23.7% in 1995, and the proportion of exports to Asia increased from 32.8% in 1998 to 52.6% in 1995. The structure of export products has also undergone great changes, with electronics, information, machinery, motors and transportation products accounting for more than 50% of the total export. Foreign investment has increased substantially, and it has become a net capital export area, reaching 1995, with foreign investment of about 30 billion US dollars. During this period, the economic ties between Taiwan Province Province and Chinese mainland and Hongkong became increasingly close.

The reasons for the rapid economic development in Taiwan Province Province are summarized as follows:

(1) Thanks to the massive economic assistance from the United States and the development of the post-war capitalist world economy. Starting from its own strategic interests, the United States provided * * * 1950 to 1965 with $0.5 billion in economic assistance to Taiwan Province Province. During the period of 15, "American aid accounted for about 34% of the total investment in Taiwan Province Province on average, thus making up for 9 1% of the surplus of goods and services in Taiwan Province Province". American economic assistance to Taiwan Province Province is not limited to funds or materials, but also includes military assistance, low-interest loans, direct investment, technology transfer and talent support. American aid has played an important role in the economic development of Taiwan Province Province. Scholars in Taiwan Province Province believe that without American assistance, "the economy of Taiwan Province Province will be at least 20-30 years behind now". In addition, the postwar economic prosperity of western countries in 1960s and 1970s provided a huge market for Taiwan Province Province to develop its export-oriented economy.

(2) Property and talents brought from mainland China have played an important role. When the Kuomintang ruling clique retreated to Taiwan Province Province, it transported 802,000 gold and a large number of silver dollars and US dollars from Shanghai to Taiwan Province Province. The Kong and Song families transferred $2 billion to banks such as Citigroup and Volkswagen, bringing a large number of financial talents. These funds and talents have played an important role in the economic development of Taiwan Province Province. In addition, the Kuomintang ruling clique also sent a lot of machinery and equipment to Taiwan Province Province.

(3) People in Taiwan Province Province have made great contributions to economic development. The people of Taiwan Province Province are hardworking, thrifty and industrious, and have made great contributions to raising the savings rate, raising funds and opening up the international market in Taiwan Province Province. Farmers have made sacrifices in the process of industrialization, and small and medium-sized enterprises have become the protagonists of export trade.

(4) Taiwan Province provincial authorities have formulated economic policies such as seeking development through stability. For example, in the development strategy, agriculture and labor-intensive industries should be developed first, and then capital and technology-intensive industries should be developed; Developing import substitution industries first, and then developing export-oriented industries, combined with the actual situation of Taiwan Province Province, effectively utilized the opportunities of changes in the international economic environment.

(5) The development of cross-strait economic and trade relations has had an important impact on the economic development of Taiwan Province Province. Over the past decade or so, cross-strait economic exchanges and cooperation have reached a certain scale, and a situation of complementarity and mutual benefit is taking shape. Chinese mainland has become the hinterland of economic development in Taiwan Province Province. Taiwan Province Province obtains a huge surplus from cross-strait trade every year, which ensures the balance of trade and improves its investment capacity in the island. A large number of labor-intensive enterprises in Taiwan Province Province have invested in the mainland, which has eased their difficulties in developing on the island and is conducive to the industrial transformation and upgrading in Taiwan Province Province, especially the growth of high-tech industries. The increase of the mainland's share in Taiwan Province's exports has reduced Taiwan Province's excessive dependence on the American market and played an important role in the economic stability of Taiwan Province Province.

Although the GDP per capita in Taiwan Province Province is relatively high, the domestic demand market is narrow, the natural resources are few, and the scientific and technological foundation is weak, which forms the characteristics of "shallow dish economy". This feature is mainly manifested in the high dependence on overseas markets and technologies. From 65438 to 0980, the dependence on foreign trade in Taiwan Province's economic development was as high as 95.6%, of which the dependence on export trade was 47.89%. Although the dependence on 1995 has declined, it is still as high as 8 1.65%, of which the dependence on export trade is 42.36%. In recent years, although industrial upgrading in Taiwan Province Province has achieved certain results, the external dependence of key technologies is still high. For example, the output of integrated circuit chips has leapt to the forefront of the world, but the key technology of its circuit design still mainly depends on developed countries. Therefore, although the industrial upgrading in Taiwan Province Province has made progress, the overall industrial technology has not made a breakthrough, and the basic pattern of weak independent development ability of industrial technology has not changed. Taiwan Province's economy is highly dependent on foreign countries, which is greatly influenced and restricted by the external environment. In recent years, Taiwan Province's economy has maintained moderate growth, and the effects of new market development and trade creation are greater than technological creation.

For a long time, the financial situation of Taiwan Province Province has been poor and the tax base has shrunk. The annual growth rate of tax revenue decreased from 19.7% in 1992 to -6.7% and 5438+0 in 2006. At the same time, the expenditure of state treasury and "treasury" at all levels has increased rapidly. In the expenditure structure, arms expenditure accounts for a large proportion in the financial budget. For example, in the budget of 1996, defense expenditure (excluding the special budget for arms purchase) accounts for 22. 1%. If administrative expenditure is included, the proportion of unproductive expenditure in the total financial expenditure is very large. The financial situation continues to deteriorate. By 2002, the total debt of Taiwan authorities was close to NT$ 4 trillion, and the debt balance accounted for more than 30% of GDP.

The economic development of Taiwan Province Province is also affected by the fierce civil strife on the island and the instability of cross-strait relations. In recent years, the disputes between political parties in Taiwan Province Province are extremely fierce and frequent, which has greatly affected the formulation and implementation of relevant policies and regulations, and has also become one of the reasons for administrative inefficiency; Coupled with rampant "black money politics", the progress and quality of many major projects have been negatively affected. At the same time, the separatist policy pursued by Taiwan Province authorities has caused instability in cross-strait relations, which has affected the willingness of private capital and foreign investment in Taiwan Province Province in Taiwan Province Province.

To sum up, the main problems facing Taiwan Province's economy are political and economic structure. Although Taiwan Province authorities have taken some corresponding measures, some of which are helpful, it is difficult to fundamentally solve the problem.

II. Overview of Science and Technology

The development of science and technology in Taiwan Province Province is closely related to its economic development. Since the war, it has gone through the following three stages:

The first stage is the foundation stone laying period (l959- 1968). In 1950s, Taiwan Province provincial authorities took economic stability as their main goal, and could not give consideration to the development of science and technology. It was not until 1959 that the authorities of Taiwan Province Province promulgated the "Long-term Development Plan of Science and Technology", the main goal of which was to enrich the foundation of scientific and technological development. In the same year, the Long-term Development Science Committee was established to plan and promote long-term scientific research. During this period, the development direction of scientific and technological research is mainly based on basic science, and at the same time, research-oriented talents are cultivated through various funding measures.

The second stage is the initial development period (1969- 1980). From the end of 1960s to 1970s, the focus of industrial development in Taiwan Province Province shifted from light industry to heavy chemical industry, which put forward requirements for industrial technology. Therefore, in 1968, the authorities of Taiwan Province Province promulgated the "Twelve-year Scientific Development Plan", which further strengthened the research of applied science while expanding the research foundation and improving science education, and successively established the Industrial Technology Research Institute and the "Applied Technology Research and Development Group" of the Executive Yuan, and paid attention to promoting enterprises to invest in scientific and technological research.

The third stage is to comprehensively promote the development of science and technology (1980 to present). With the economic transformation of Taiwan Province Province since the mid-1980s, the low level of science and technology has become one of the main obstacles to promote industrial upgrading and social development. The authorities of Taiwan Province Province began to increase the investment in science and technology funds and personnel, and formulated a series of corresponding planning and development strategies to realize the long-term goal of building Taiwan Province Province into a "science and technology island". 1978, Taiwan Province provincial authorities held the first scientific and technological conference attended by industry, government and academia, and the following year promulgated the "scientific and technological development plan" as the highest guiding principle for scientific and technological development at this stage. Since then, science and technology conferences have been held every four years to formulate new development policies and plans.

Since 1980s, science and technology in Taiwan Province Province have developed rapidly. From the investment in science and technology development, from 1986 to 10 in 1996, the expenditure on scientific research has increased by 4.8 times, and the proportion of the gross national product has increased from 1. 14% to 1.85%. The number of researchers has tripled, and the number of researchers per ten thousand population has increased from 14.3 to 33.4. Judging from the achievements of scientific research and development, the number of local patent projects in 1986 reached 194 10, which was 3.3 times that of 1986. The international ranking of the number of SCI papers published in Taiwan Province Province rose from 28th in 1989 to 20th in 1994. In developing technology-intensive industries, Taiwan Province Province established Hsinchu Science Industrial Park on 1980, which promoted the development of high-tech industries such as information and semiconductor communication. 1997, the export volume of high-tech intensive products accounts for 39.7% of the total export volume, which is more than double that of 1986. At present, the output value of information industry and semiconductor industry in Taiwan Province Province has jumped to the third and fourth places in the world respectively, and has become an important processing and production base in the world. The production technology of semiconductor integrated circuits has approached and reached the advanced level in the world.

According to the characteristics of the development of science and technology, the economy of Taiwan Province Province is small, with small and medium-sized enterprises accounting for the vast majority, and the development of folk science and technology research is inherently insufficient, so the administrative department of science and technology of Taiwan Province Province occupies a leading position in the process of science and technology development. Of the total investment in science and technology, official investment accounted for more than 60% in the 1980s, while private investment was less than 40%. In the 1990s, private investment increased relatively, and official and private investment still accounted for about half. At present, the scientific and technological research system is mainly composed of scientific and technological administrative departments, research institutions affiliated to public enterprises, specialized consortia and research institutions affiliated to universities and private enterprises.

From the division of scientific and technological research, basic research is mainly undertaken by academia Sinica and universities, applied scientific and technological research is mainly undertaken by industrial technology research institute and research institutions affiliated to various scientific and technological administrative departments, military science and technology is undertaken by Zhongshan Research Institute, and commercialization and marketization of scientific and technological achievements are undertaken by enterprises.

Although the development of science and technology in Taiwan Province Province has made rapid progress since 1980s, it still lags far behind developed countries and even South Korea at the same level of economic development due to the influence of economic scale, enterprise structure and talents. For example, Taiwan Province's total investment in science and technology is only half that of South Korea. The overall R&D level is backward, which makes Taiwan Province's high-tech industry rely heavily on Japan and the United States in key technologies and key components. Most manufacturers in Taiwan Province Province still rely on imported production technology. Although information, semiconductor and other industries have developed rapidly, due to the lack of their own key technologies, most of them can only adopt the method of entrusted processing and manufacturing, and most of the profits are taken away by foreign manufacturers who have mastered key technologies and parts.