ITRI, a Pillar of Support for Taiwan’s Industries

Taiwan, comprising merely 3% of the global population, currently ranks as the world’s 21st largest economy. According to the Swiss-based Institute of Management (IMD) World Competitiveness Yearbook 2023, it is the sixth most competitive economy globally, demonstrating the country's position as a critical node within global supply chains.

Taiwan holds a globally influential semiconductor industry, a 90% share of the international cloud server market, and over 70% market dominance in functional textiles. Behind this innovation prowess stands the Industrial Technology Research Institute (ITRI), a consistent driving force of Taiwan's economic growth.

In the early 1970s, Taiwan faced significant challenges on political and economic fronts. Mr. Sun Yun-suan, the Minister of Economic Affairs at the time, thus spearheaded the establishment of ITRI. His vision was to catalyze Taiwan’s industrial transformation through technological development.

A case in point is the semiconductor industry, where ITRI propelled growth by importing foreign technologies, spinning off companies, and facilitating the transfer of both technology and talent. This gradually elevated the sector to its current state as the “sacred mountains” that safeguard Taiwan’s economy.

Adapting to the ever-evolving industrial backdrop, ITRI remains at the forefront of Taiwan’s industrial transformation into a technology-driven powerhouse. Taiwan, from a technology follower, has grown into a significant innovator on the world’s stage, creating economic value for its industries.

World-Class Research Institution

Over the years, I have had the privilege of serving as the convener of ITRI’s Advanced Research Advisory Committee (ARAC), Strategy Advisory Committee (SAC), and Commercialization Advisory Committee (CAC). During this time, I have closely observed ITRI’s embrace of international perspectives and alignment with global trends.

ITRI has been listed among the Top 100 Global Innovators for its innovations and patent impact, standing shoulder to shoulder seven times with renowned organizations such as ASML and the French National Centre for Scientific Research (CNRS). ITRI has also secured for 16 consecutive years the prestigious R&D 100 Awards, a highly sought-after award and an important benchmark for the U.S. government to evaluate its national laboratories. These achievements underscore ITRI’s position as a world-class research institution today.

Notably, ITRI's innovative technologies addressing major global challenges have been repeatedly recognized by the Edison Awards. Examples include the O-RAN energy-saving private network management technology. This gold medal-winning solution pioneers intelligent management of 5G base stations, enabling swift market entry for Taiwanese information and communications manufacturers in the 5G O-RAN arena. Another example is the supramolecular complex-based eye drop formulation. This drug delivery technique was awarded a silver prize for its market-disrupting approach to treating wet macular degeneration without the need for eye injections, and has been transferred to manufacturers.

Capital Market Connections to Foster Startups

Drawing from my many years of experience in entrepreneurship and incubating startups in the U.S., I’m firmly convinced that new technologies thrive when infused with market vitality. In contrast to the vibrant entrepreneurial ecosystem in the U.S., Taiwan faces relative scarcity in terms of capital investment. ITRI not only invests in cutting-edge technology R&D but also shapes the entrepreneurial landscape by actively forging connections with the capital markets.

In recent years, ITRI, leveraging the Small and Medium Enterprise Credit Guarantee Fund and the support from 26 major financial institutions in Taiwan, has pioneered successful intangible asset finance. This has assisted more than 50 companies in obtaining funds through technologies and patents, creating impetus for small and medium-sized enterprises as well as new ventures to grow.

Furthermore, in collaboration with industry, academia, and research sectors, ITRI established the IP Bank to build a strategic patent portfolio that protects the technology and service assets for Taiwanese industries when entering international markets. Moreover, ITRI has implemented an early capital investment mechanism to provide promising R&D teams with early access to the capital market.

These initiatives are highly constructive for offering advantages for technology to enter the market and nurturing a wholesome entrepreneurial ecosystem, infusing vitality from the very source.

Industry Upgrades for Future Challenges

In the face of challenges posed by emerging technologies, industries must display skills to integrate knowledge and modes of thinking across fields to strengthen competitiveness. ITRI takes the lead in ESG, digital transformation, sustainability, digital twins, and generative AI (GAI), with prudent strategies in place for the prospective industrial landscape. ITRI has collaborated with experts, consultants, and its laureates to complete the 2035 Technology Strategy & Roadmap, focusing on major interdisciplinary applications, including Smart Living, Quality Health, Sustainable Environment, and Resilient Society.

Based on my observation of international research institutions and multinational corporations, ITRI’s forward-looking industrial development strategies, coupled with its solid interdisciplinary RD&D capacity, are a valuable asset on the global stage.

Particularly noteworthy is ITRI’s proactive stance in addressing emerging issues. ITRI established the Net-Zero Sustainability Strategy Office ahead of industry needs, outlining the Taiwan 2050 Hydrogen Application Development Technology Blueprint to provide decarbonization solutions and services to the industry. With the advent of GAI, ITRI has put forth strategic solutions for industries to navigate and thrive in uncharted waters.

Cross-Disciplinary Advantages

Taiwan, known for its manufacturing prowess, is ready to pivot toward higher levels of manufacturing and design that aligns with global R&D advancements. Continuous investment in applied technology development is imperative to facilitate this transformation. ITRI is the key to this endeavor, as it has always been known for creating innovative solutions to benefit industries. 

Having recently celebrated its 50^th anniversary, ITRI continues to fulfill its role of innovation. The annual ARAC meeting expects ITRI to evolve with the times and roll out tech-driven solutions. Through its dedication to driving integrated applications and industrial upgrades, ITRI stands as a motivating force behind Taiwan’s future economic growth, the industry’s most steadfast support, and the world’s trustable partner.

(This piece reflects the author's opinion, and does not represent the opinion of CommonWealth Magazine.)

About the author:

Cheng Wu, ITRI Laureate, General Partner of the Taiwania Capital Tech Fund.

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