the asia silicon valley development...
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The Asia Silicon Valley Development Plan
From IT to IoT ─ Engineering a New Industrial Transformation for Taiwan
Asia Silicon Valley Development Agency
September 11, 2017
Kung, Ming-Hsin Chief Executive Officer
Outline
IoT Development
Vision and Strategies
Implementation
Goals
Why Taiwan?
2
IoT Development
3
Forecast of Global IoT Economic Value by 2025
4
Source: IOT ANALYTICS: IoT Market – Forecasts at a glance
Global Potential Economic Impact of the IoT in 2025
5
Source: McKinsey, 2015
Vision and Strategies
6
Economic Development
Innovation- driven Growth
Quality Employment
Asia Silicon Valley Development
Plan
Vision
7
Transform and upgrade Taiwan’s industrial structure
with IoT
Drive economic growth with innovation and
entrepreneurship
Optimizing Taiwan’s startup
and entrepreneurship
ecosystem
(9 projects: NT$1.65B)
Enhancing linkages with renowned tech clusters
worldwide
(4 projects: NT$0.3B)
Completing IoT value chain
(19 projects: NT$4.51B)
Establishing demonstration sites for smart products
and services
(19 projects: NT$3.97B)
Four Strategies and Budget 2017
Unit: NT$ Billion Source: DGBAS
Ministries MOEA MOST MOTC MOE MOHW Others Total
Budget 2017 7.44 (71.3%) 1.95 (18.7%) 0.55 (5.2%) 0.30 (2.9%) 0.14 (1.3%) 0.06 (0.6%) 10.44 (100%) 8
Build an IoT & start-up ecosystem with heavy focus on R&D
National Central Univ., National Taiwan Univ., National Tsing Hua Univ., National Chiao Tung Univ. and others
Industrial Technology Research Institute (ITRI), Institute for Information Industry (III), and other prominent global institutes
Universities
Startups
Corporations
Research Institutes
R&D Clusters
Taiwan corporations, e.g. Acer, Inventec, Chunghwa Telecom, Advantec, Asus
International corporations, e.g. Cisco, HPE, IBM
Startups established by universities, research institutes and corporations
Startups launched with entrepreneurial spirit
Innovative R&D centers founded by multinational corporations
• Legal & accounting services
• Regulatory adjustment
• Link and integration platforms
• Test beds and supportive policies
• Recruitment services
• Talent exchanges
• Business angels, VCs, accelerators
• Capital assistance Policy
Environment • Social Network • Infrastructure
Local Industries and Environment
9
1、Optimize Taiwan’s Startup and Entrepreneurship Ecosystem (1/5)
1、Optimize Taiwan’s Startup and Entrepreneurship Ecosystem (2/5)
Deregulation of overseas recruitment and retention
Relax restrictions on attracting foreign students
Strengthen function of "Contact Taiwan", the one-stop online talent recruitment service
Improve university start-up regulations and incubation mechanisms
Provide financial support to post-doctoral fellows to study or train overseas and learn about global innovation trends
Global talent attraction
Local talent cultivation
10
Increase talent supply
Provide business expansion capital Increase early-stage investments Relax IPO listing requirements and lower transaction costs Establish national investment company, industrial innovation & transformation
fund etc.
11
Seed Stage
Startup Stage
Expansion Stage
Mezzanine Stage
Preparation Stage
Business revenue
IPO
Startup grants Capital market fundraising (stock exchange listing)
Later-stage investments Early-stage investments
Young Entrepreneur Startup Financing Loans
HeadStart Taiwan Investment program
Business Angel Program
Taiwan Silicon Valley Technology Fund
Program for Financial Support of Creative Enterprises
Equity Crowdfunding Platform
Go Incubation Board for Startup and Acceleration Firms (GISA)
Micro Biz Loans
Small Business Innovation
Research Program (SBIR)
Special Project Loans for Innovation &
Development of SMEs
National Investment Co. Management Fund up to NT$10 B
Industrial Innovation & Transformation Fund up to NT$100 B
Angel Fund, Startup Fund
1、Optimize Taiwan’s Startup and Entrepreneurship Ecosystem (3/5)
Adjust laws and regulations
19
Laws and regulations related to the Digital Economy
Application Issues Fundamental Issues
Cyber security and personal information protection
Establishment and operation of corporations
Digital assets and corporate fundraising
Digital talent cultivation and recruitment
Digital governance
Regulatory sandbox
Remote medical services and healthcare
E-commerce
Fintech services
Sharing economy
Internet of Things (IoT)
Current major economic legislation
Income Tax Act
Deregulation of overseas
recruitment and retention
Corporate anti-corruption and bribery laws
Deregulation of professors and students starting companies
on campus
Accounting and auditing regulations favorable to industrial innovation
Regulations encouraging government to procure products or
services from startup companies
1、Optimize Taiwan’s Startup and Entrepreneurship Ecosystem (4/5)
Build an innovation environment
Measures for the Future
13
Enhance functions of existing local startup clusters, and strengthen connections with clusters throughout Asia
Upgrade and transform university incubators
to partner with local renowned accelerators
Promote collaboration between state-owned enterprises or large corporations and startups and accelerators
Existing Tech Clusters
International Entrepreneur Initiative Taiwan 2.0
Start-Up Hub
TAF Innovation Base
Social Enterprise Hub
1、Optimize Taiwan’s Startup and Entrepreneurship Ecosystem (5/5)
2、Enhance Linkages with Renowned Tech Clusters Worldwide (1/3)
14
Partner with global innovation clusters for technology, talent, capital and markets
AR, VR
IoT
ICT
Digital Education
Semiconductors
Smart Manufacturing
Smart Energy
Smart Tourism
Forge connections with R&D capabilities of Silicon Valley and other global innovation clusters
National Investment Co.
Innovation R&D Center
2、Enhancing Linkages with Renowned Tech Clusters Worldwide (2/3)
Asia Silicon Valley Development Agency (ASVDA) – Set up on December 25, 2016 – Facilitating business corporations – Integrating resources to promote IoT
and startups
ASVDA Bay Area Office – Set up on January 14, 2017 – Integrating resources of Taiwan
Government’s innovation and entrepreneurship overseas
– Helping local startups go to the U.S.
Smart City Working Group ⁻ A Taiwan-U.S. Smart Cities Working
Group launched in April 2017
Global Entrepreneurship Congress (GEC) 2017 ⁻ CIO of ASVDA presenting the Asia Silicon
Valley Development Plan in GEC 2017 in Johannesburg, South Africa
15
2、 Enhancing Linkages with Renowned Tech Clusters Worldwide (3/3)
Microsoft IoT Innovation Center – Launching in Taiwan in Oct 2016 to help
Taiwanese corporates to come up with IoT solutions
Qualcomm Technology Lab - Taiwan – Founding in Nov 2016, focusing on IoT,
5G, IoV etc. – Assisting Taiwanese companies in areas
of advanced technologies, service design and product launch
FbStart Accelerator – Setting up in Taiwan in March 2016 – Cooperating with AppWorks and TSS,
providing tools and services to Taiwan’s startups
Introduce global startups into Taiwan – 24 global startups invited to exhibit at
InnoVEX 2016. Eight teams successfully partnering with Taiwan corporates
– 44 global startup teams displaying at Meet Taipei 2016
– 6 leading startup entrepreneurs including Sigfox co-founder visiting Taiwan under the Visiting Entrepreneurship Program
Help Taiwan startups go global – Taiwan Startup Stadium (TSS) leading 12
local teams to display at Disrupt San Francisco 2015 & 2016
– TSS also building network with New York startup communities
More European presence in Taiwan – La French Tech set up Taiwan office at end
of 2016 – Austrian startup delegation will visit
Taiwan in July 2017 16
3、Build a complete IoT Value chain(1/5)
17
Encourage university spin-offs, research spin-offs, or collaboration with startups
Promote innovation of IoT related technology, and help businesses carry out cross-field integration
Develop university courses, both in-class & online, on software & hardware-software integration
Target sectors such as sensors, networks and services, and get involved in standard formulation and patent registration
Enhance software capabilities
Commercialize IoT research findings
Build an IoT ecosystem
Develop industries to fill the existing IoT tech gap
Industrial innovation & transformation fund Help existing hardware MFRs to transform themselves into system integrators
18
80% of IoT business
opportunities to come from
services
Taiwan’s strengths
Source: Market Intelligence & Consulting Institute, Industrial Economics and Knowledge Center
Taiwan’s strengths
IoT service (transportation, energy, commerce, manufacturing, medicine)
big data analysis data mining service operational intelligence analysis
big data security business intelligence applications data: income, operations
4th Layer
Application services
data center software as a service (SaaS) cloud service
quality control and service management customer needs management
3rd Layer
Data collection
broadband (DSL, fiber optic)
mobile broadband (3G, 4G, 5G) satellites, GPS
wireless personal area network (NFC, Zigbee) Wi-Fi
2nd Layer
Internet infrastructure
gateway smart lighting e-healthcare
sensing device energy management in-vehicle network
smart plugs smart appliances smart grids
IoT platform protocols
1st Layer
Object detection
3、Build a complete IoT Value chain(2/5)
Establishing Major League IoT, ASVDP
Major
League IoT,
ASVDP
Organizing a prototype
national team
formulating Industrial standards
providing policy suggestions
linking to government demonstration programs
19
3、Build a complete IoT Value chain(3/5)
Major League IoT, ASVDP Composed of Acer, MediaTek Inc, Advantech, Cisco, Microsoft,
IBM and other corporations, associations, startups, SMEs, and institutes
More than 230 companies and institutes registered as members. Two general meetings have been held so far.
Startup Associations Industrial
Alliance/Association
Research Institutes SMEs
Multinational Corporations
Cross-industry Cooperation
Domestic Enterprises
20
3、Build a complete IoT Value chain(4/5)
SIG Meetings
Held in Feb and May 2016 respectively. Hundreds of people from various companies attended
Discussion focusing on 8 areas including smart transportation, smart healthcare, industry 4.0 etc.
Smart Transportation
Smart Homes
Smart Manufacturing (or industry 4.0)
Smart Healthcare
Smart Agriculture Smart Business Smart Logistics Smart Energy and Environmental
Scanning
21
3、Build a complete IoT Value chain(5/5)
Exploit Taiwan’s strengths and advantages to tackle local and global problems
Maximize Taiwan’s strengths to develop new industries such as smart logistics, future cars, healthcare, smart robots and smart cities
Make best use of Taiwan’s uniqueness, e.g. a comprehensive medical database derived from the National Health Insurance system
Help solve global issues such as healthcare, medical services, food safety etc.
22
4、 Construct Diversified Test Beds for Smart Products and Services (1/3)
4、 Construct Diversified Test Beds for Smart Products and Services (2/3)
Test beds for demonstration Nationwide: AR, VR, e-commerce
City/county-wide: Smart logistics, healthcare, commerce, cities and grids; make industrial parks smarter
Regional: e.g. Smart transportation for Keelung, Taipei, Taoyuan, and Hsinchu; smart manufacturing in central Taiwan; smart energy in southern Taiwan; and smart tourism in eastern Taiwan
23
AR, VR
IoT ICT
Digital education
Semiconductors
Smart manufacturing
Smart energy
• Smart logistics • Smart healthcare • Smart transportation • Smart industrial parks Smart
tourism
4、 Construct Diversified Test Beds for Smart Products and Services (3/3)
Establishing Demonstration Sites for Smart Products and Services
Focusing on popular issues such as smart transportation, smart healthcare etc.
Testing and verifying technologies and buz models at selected demonstration sites
Promoting service-oriented solutions
Expanding to the Island’s other cities and overseas markets
Smart City Demonstration
24
MOEA is launching a grant scheme and calling for proposal for Smart City solution
Future Focus
ASVDP will concentrate on the following
six plus one key areas in the future
Future Focus
26
Self-driving Cars
Mobile Life
IoT Cybersecurity
AR/VR
AI New Southbound policy
and Global Linkage
Startup
Implementation
27
The Plan’s Implementation Center
28
Chief Executive Officer
Think Tank
Chief Research or Technology
Officer (CRO or CTO)
Chief Human
Resources Officer (CHRO)
Chief Financial & Investment
Officer (CFO & CIO)
Chief Legal and Environmental Commitment
Officer (CLO & CECO)
Chief
Administrative Officer (CAO)
Coordination Committee for collaboration among industry,
governments (central and local), universities & research institutes
Goals
29
Qualitative Goals
Connect to Silicon Valley and other global tech clusters Forge connections with their advanced R&D capacities and make Taiwan the best partner for global corporations with good potential
Develop industries for the next generation Make Taiwan a leading global tech cluster for the Internet, Big Data, IoT and other new industries
Become an innovative startup destination for young Asians Optimize Taiwan’s startup ecosystem by incubating local startup teams and bringing outstanding global talent to Taiwan
30
Taiwan- Silicon Valley Connection
Future Industry
Development
Innovation & Entrepreneurship
Quantitative Goals Increase Taiwan’s IoT global market share
(Projection of combined impacts of the Asian Silicon Plan and other digital economy plans)
5%
Grow 100 successful companies, either local startups enjoying successful exits or local R&D centers set up by large corporations 100
3 Develop and establish 3 global systems integrators in Taiwan
2 Successfully attract investments from 2 world-class companies
1 Create 1 online learning platform for the IoT related sectors
from 3.8% in 2015 to 4.2% in 2020 5% in 2025
31
WHY TAIWAN?
32 Copyright© National Development Council. All Rights Reserved.
IC Foundry (No.1)
LCD panel (No. 2)
PC / Notebook (No.1)
Bicycle (No.1)
5 companies rank among the world’s Top 10 Original Design Manufacturers (ODM)
140,000 Manufacturing
SMEs
33
Taiwan is leading in the world …
IC design (No. 2)
Server (No.1)
Tablet (No. 2)
Sources : Industrial Development Bureau 2015 statistics Copyright© National Development Council. All Rights Reserved.
• The 7th best developer in the world
• The 9th largest country in terms of total developers
• The 5th hottest app development cluster (Taipei)
Mozilla 2016 Report
HackerRank 2016 Report
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Taipei Within 1 hour’s drive…
• Market of 10M+ people
• 70+ hi-tech clusters & software parks
• Top 3 universities
• Main international airport
• Two international ports
• Taiwan Central government
35
One can access
Sources : Wikipedia
Copyright© National Development Council. All Rights Reserved.
Tokyo
Seoul Beijing
Shanghai
Taipei
Hong Kong
Bangkok
Singapore
2 Hours
5 Hours
2.55 hours (avg.)
36
Strategic Location in the Asia-Pacific region
Sources : Invest Taiwan
Strong entrepreneurial spirit
• 1st in Asia (Global Entrepreneurship Index 2016)
37
Easy to do business
• 4th in Asia (World Bank : Ease of Doing Business 2016)
Great IPR protection
• 4th in Asia (The International Property Rights Index 2016)
Abundant creative talents
• 1st in Asia (The global competitiveness report 2016-2017 - Innovation Capacity)
The best place for expats
• 1st in the world (InterNations Expat Insider Survey 2016)
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PROTOTYPING
MEDIA
CROWDFUNDING
TAIWAN STARTUP ECOSYSTEM
COWORKING SPACE
ACCELERATOR
VENTURE CAPITALS
ENTERPRISES STARTUPS
GOVERNMENTS
38 Copyright© National Development Council. All Rights Reserved.
Taiwan Internet of things new company
2013-2017.7 total of new companies 196,946
7,326 4,025
10,994
5,311 Emerging
application potential industry
15,019
資料來源:經濟部商業司、財政部財政資訊中心
4th Layer Application services
3rd Layer Data collection
2nd Layer Internet infrastructure
1st Layer Object detection
1,372
The number of applications services companies has increased significantly in the past 12 months
資料來源:經濟部商業司、財政部財政資訊中心
4th Layer Application services
1st Layer Object detection
3rd Layer Data collection
2nd Layer Internet infrastructure
41
Taiwan is ready Welcome to Join Us !!!
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