Scholarly analysis and commentary offer strategies for the future, and timely special issues focus on areas of crisis and change. One solution is to leverage the harmonization of standards through a U.S.-Taiwan trade agreement, which could include chapters covering trade in both goods and services, as well as e-commerce and investment rules.

44 Matt Sheehan, “Much Ado About Data: How America and China Stack Up,” MacroPolo, July 16, 2019, https://macropolo.org/ai-data-us-china/. Companies like Microsoft continue to invest heavily in Taiwan’s IoT industry. If Taiwan can secure its design data—and the data of its partners—while also securing its intellectual property from poaching and theft, it could reemerge as a key partner in multinational strategies to successfully shape the future market.

Indeed, while Taiwan now has a vibrant and flourishing startup scene, few of these firms have agglomerated around new or fast-growing areas of science, technology, engineering, and mathematics (STEM). Speed, data crunching, and security at the edge will be major differentiators for those who become leaders in these areas.

Indeed, Beijing will continue to pressure Taiwan in multidimensional ways. Taiwan today largely cannot offer the unique manufacturing ecosystem of Shenzhen. The Be’er Sheva model is just one example of how a strategic approach that marries government, industry, and universities can foster a tech- and startup-friendly ecosystem.42 Like Taiwan, Israel confronts a scale problem: with just 8 million people, its population is nearly two-thirds smaller than even Taiwan’s. 33 Masha Borak, “World’s Top Drone Seller DJI Made $2.7 Billion in 2017,” TechNode, January 3, 2018, https://technode.com/2018/01/03/worlds-top-drone-seller-dji-made-2-7-billion-2017/. Globally 3.2 billion people are using the Internet of which 2 billion are from developing countries. If Taiwan can succeed at setting high or even best-in-class security standards—for instance, through the efforts described above to become a trusted vendor, trusted tester, trusted conduit, and trusted research hub—it could enable enhanced knowledge partnerships with the United States. I understand that the data I am submitting will be used to provide me with the above-described products and/or services and communications in connection therewith. Within the IoT ecosystem, smart medical devices are poised to make a big impact in Taiwan and subsequently, around the globe. The global market leader in drones for aerial photography and videography is Shenzhen-based DJI, a Chinese firm that has captured 70 percent of the global market because of its advantage in flexible hardware manufacturing.33 Not surprisingly, it now seeks to make a transition to making AI and computer vision a new basis for growth. Follow the conversation—Sign up to receive email updates when comments are posted to this article. 9 Colin Tung, “Startupbootcamp Fintech Makes FastTrack Pitstop in Taiwan,” e27, January 27, 2016, https://e27.co/startupbootcamp-fintech-fasttrack-taiwan-20160127/. 40 Will Knight, “China’s AI Unicorns Can Spot Faces. A stronger trade relationship between the United States and Taiwan would offer a platform to lock in mutually beneficial gains between two APEC partners by negotiating a formal system of shared standards. But the next era of chip design is in play, and partnerships and supporting policies to quickly research, develop, and test this hardware will be critical. And so easy to use. In the 1980s and 1990s, mutually beneficial collaborations between Silicon Valley and the broader Hsinchu-Taipei region supported entrepreneurial dynamics and the growth of the indigenous semiconductor and PC industries in Taiwan. Taiwan may also develop opportunities in quantum computing as a result of the 2019 opening of “IBM Q,” a co-innovation hub of IBM and National Taiwan University. 7 “Action Plan for Enhancing Taiwan’s Startup Ecosystem,” Taiwan National Development Council, February 22, 2018, https://www.ndc.gov.tw/en/Content_List.aspx?n=DD6EB3B5F084F394. In addition, tax credits are encouraging an influx of foreign talent. 39 Julie Spitzer, “To Address the Physician Shortage, Japan Plans 10 ‘AI Hospitals’ — Here’s What They Will Look Like,’ Becker’s Health IT & CIO Report, August 15, 2018, https://www.beckershospitalreview.com/artificial-intelligence/to-address-the-physician-shortage-japan-plans-10-ai-hospitals-here-s-what-they-will-look-like.html; Kayla Matthews, “AI Is Enabling Faster Delivery of Health Care to More People in APAC,” Brink, April 12, 2019, https://www.brinknews.com/the-role-of-ai-in-the-apac-health-care-industry/. For one, Chinese state policies have thus far precluded Taiwan from forging industrial and commercial links in the context of formal investment, trade, or other framework agreements with regional governments, especially in the Southeast Asian countries that are critical parts of the East Asian manufacturing supply chain. JSTOR®, the JSTOR logo, JPASS®, Artstor®, Reveal Digital™ and ITHAKA® are registered trademarks of ITHAKA. One Taiwan industry insider consulted for this paper argued that university curricula and new degree programs usually lag at least three to five years behind cutting-edge technology, and even this may be optimistic.27 So, Taiwan, like many other advanced economies, including the United States, needs to compete through enhanced STEM-related instruction at both high school and university levels. Meanwhile, U.S. innovators, including Silicon Valley’s principal market makers, increasingly shifted their focus away from hardware toward software—a shift that yielded new pressures on Taiwan’s hardware-dominant technology and innovation industries.



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