THE CHINA THAT MATTERS:

Taiwan towers as an innovator (John Boudreau, 3/27/06, Knight Ridder Newspapers)

Think of most tech gadgets, from the iPod to the PlayStation, and an engineer on this island of 23 million probably has had a hand in its creation.

While India and China share the spotlight as emerging giants, Taiwan is already a huge behind-the-scenes maker of tech products.

Taiwanese companies produce three-quarters of the world's notebook computers, two-thirds of its personal digital assistants and nearly 70 percent of its liquid crystal display monitors, according to Taiwan government statistics.

The island is home to Taiwan Semiconductor Manufacturing, the world's largest made-to-order chip manufacturer. Civic leaders like to point to the jade-green Taipei 101, the world's tallest skyscraper that towers over the densely packed city, as a sign of Taiwan's economic prowess.

Now Taiwan is making strides in moving to a more visible role as tech innovator. As China muscles its way into more and more sophisticated manufacturing, Taiwanese companies are elevating their research-and-design skills and creating their own brands that can be marketed globally to stay a few steps ahead of its intimidating neighbor.

Anbody can assemble parts--in fact, the bodies are often superfluous--innovation is the hard part.

Posted by Orrin Judd at March 27, 2006 7:21 AM