© 2007-2013 IMD – International Institute for Management Development. Not to be used or reproduced without permission.

IMD World Competitiveness Center (April 2013)

Competitiveness Landscape 2012& Opportunities to strengthen Taiwan’s Competitiveness

Prof. Dominique TurpinIMD President

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IMD IS A WORLD LEADER IN EXECUTIVE EDUCATION

Leading Global Business School - IMD ranked first in executive education outside the US and second

worldwide (Financial Times 2008-2012) - IMD ranked first in open programs worldwide (Financial Times 2012) - IMD’S MBA is ranked number one worldwide (Forbes, 2011)

60 Faculty members, over 300 employees Open / Company-specific programs for executives MBA and EMBA programs The IMD World Competitiveness Center (WCC)

Publisher of the annual IMD World Competitiveness Yearbook (since 1989) and pioneer in competitiveness

© IMD 2007-2013

THE IMD WORLD COMPETITIVENESS YEARBOOK

59 ECONOMIESThe most competitive nations

329 CRITERIA (2/3 hard data, 1/3 survey data)The emphasis on HARD FACTS ensures objectivity and transparency

54 PARTNER INSTITUTESTaiwan: Council for Economic Planning and Development

30 INFORMATION PROVIDERSRecognized international organizations/institutions(UN, OECD, WB, WTO, PWC, etc.)

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© IMD 2007-2013

THE WORLD COMPETITIVENESS SCOREBOARD 2012(released on May 31, 2012)

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THE 2012 WCY OVERALL RANKING

Rank2012

Rank2011 Country

Score2012

Rank2012

Rank2011 Country

Score2012

1 1 Hong Kong 100.00 31 33 Estonia 66.95

2 1 USA 97.75 32 36 Kazakhstan 66.89

3 5 Switzerland 96.68 33 30 Czech Republic 66.19

4 3 Singapore 95.92 34 34 Poland 64.18

5 4 Sweden 91.39 35 32 India 63.60

6 7 Canada 90.29 36 45 Lithuania 63.42

7 6 Taiwan 89.96 37 38 Mexico 63.18

8 13 Norway 89.67 38 39 Turkey 62.24

9 10 Germany 89.26 39 35 Spain 61.12

10 8 Qatar 88.48 40 42 Italy 60.64

11 14 Netherlands 87.16 41 40 Portugal 60.38

12 11 Luxembourg 86.05 42 37 Indonesia 59.50

13 12 Denmark 84.88 43 41 Philippines 59.27

14 16 Malaysia 84.22 44 43 Peru 58.71

15 9 Australia 83.18 45 47 Hungary 57.34

16 28 UAE 82.49 46 44 Brazil 56.52

17 15 Finland 82.47 47 48 Slovak Republic 55.67

18 20 United Kingdom 80.14 48 49 Russia 55.16

19 17 Israel 78.57 49 53 Jordan 53.23

20 24 Ireland 78.47 50 52 South Africa 53.16

21 18 Austria 77.67 51 51 Slovenia 52.96

22 22 Korea 76.75 52 46 Colombia 51.89

23 19 China Mainland 75.77 53 50 Romania 48.93

24 21 New Zealand 74.88 54 55 Bulgaria 48.45

25 23 Belgium 73.48 55 54 Argentina 48.20

26 31 Iceland 71.54 56 57 Ukraine 46.88

27 26 Japan 71.35 57 58 Croatia 45.30

28 25 Chile 71.28 58 56 Greece 43.05

29 29 France 70.00 59 59 Venezuela 31.45

30 27 Thailand 69.00

© IMD World Competitiveness Yearbook 2012 In grey: ↑ In blue: ↓ white: stable

© IMD 2007-2013

Among the top-10 countries in overall ranking Strong entrepreneurial culture Resilience of the economy Talented workforce Attractive fiscal policyBut also … Export-driven countries facing an unstable global climate Ageing of society is a concern

TAIWAN / SWITZERLAND: WHAT WE HAVE IN COMMON?

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© IMD World Competitiveness Yearbook 2012 covers 59 countries

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REGIONAL RANKING: 4 ASIAN TIGERS

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© IMD World Competitiveness Yearbook 2012

Ranks & scoresin the 2012 overall ranking

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COMPETITIVENESS BREAKDOWN

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Domestic Economy

International Trade

International Investment

Employment

Prices

Public Finance

Fiscal Policy

Institutional Framework

Business Legislation

Societal Framework

Productivity

Labor Market

Finance

Management Practices

Attitudes & Values

Basic

Technological

Scientific

Health & Environment

Education

Economic Performance

GovernmentEfficiency

Business Efficiency

Infrastructure

Overall Ranking

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COUNTRY COMPARISON IN THE 4 WCY FACTORS

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© IMD World Competitiveness Yearbook 2012 (ranks out of 59 countries)

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TAIWANESE COMPETITIVENESS LANDSCAPE 2012

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© IMD World Competitiveness Yearbook 2012

© IMD 2007-2013

Weakest Criteria# 59 Direct Investment flows Inward (low % of GDP)# 54 Exports of goods – growth (low % change based on US$ values)# 49 Part-time employment (low % of total employment) # 40 Tariff barriers (relative high % of tariffs on imports)

*Out of 59 countries

Strengths – Competitive advantages# 1* Social responsibility of business leaders is high (survey)# 1 Entrepreneurship of managers is high (survey)# 3 High-tech exports (46% of manufactured exports)# 4 Science in schools is sufficiently emphasized (survey)# 4 Adaptability of companies to market changes is high (survey)# 5 SMEs are efficient by international standards (survey)# 6 Venture capital is easily available for business (survey)

TAIWAN: EVOLUTION & COMPETITIVENESS LANDSCAPE

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PERCEPTIONS OF THE BUSINESS COMMUNITY:ATTITUDES AND VALUES

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© IMD World Competitiveness Yearbook 2012 – Survey values are between 0 to 10.

© IMD 2007-2013

CHALLENGES & OPPORTUNITIES FACING TAIWAN

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Further diversify the economy and exports beyond the high-tech sector

Attract more foreign investment from the region

Further develop the financial system to benefit from the proximity of Hong Kong and opening of China

› Improve cross-Strait relations will generate more opportunities and investment flows from China

Continue to develop the basic infrastructure Exploit strengths in technological infrastructure Invest not only in tertiary education but also in

all the levels including vocational education Improve language skills

› Strengthen competitive advantages in innovative R&D and educational system

Economic Performance (factor I)

Infrastructure (factor IV)

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Knowledge Transfer

Efficiency & Ease of Doing Business

Country image / branding

Increase the cooperation between large companies, research centers and SMEs

Increase transparency and improve corporate governance

in companies

Further develop local brands for the domestic market and

exports

EXAMPLES OF GOLDEN RULES OF COMPETITIVENESS

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WAYS TO REINFORCE COMPETITIVENESS

© IMD 2007-2013

CLLABORATIVE

OPENProsperity

Attractiveness(FDIs) Health

Expenditures

Education(primary & secondary levels)

DynamismTechnological& scientificinfrastructure

Innovation – R&DNew export niches

Skilled labor force

First-class talent & Education

Investmentincentives

SUSTAINABLE COMPETITIVENESS ROADMAP

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High degree of positive correlation between the WCY Overall Competitiveness and the criterion on “Management Education”.

NATIONS ALSO COMPETE WITH BRAINS

COMPETITIVENESS / MANAGEMENT EDUCATION

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CLLABORATIVE

OPEN

INTERESTED IN WORLD COMPETITIVENESS?

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Find outin May 2013

Rank 2013?

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CLLABORATIVE

OPEN

IMD : www.imd.org

IMD World Competitiveness Center: www.imd.org/wcc

Subscribe to the free WCY «Criterion of the Month»(WCC webletter) by sending an email to:wccinfo@imd.org

THANK YOU FOR YOUR ATTENTION

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