Introduction to Taipei City Investment and ITO

Article By : Invest Taipei Office

Taipei will soon promote Neihu Technology Park 2.0 to attract newly emerging industries such as cloud computing, IoT, self-driving vehicles, and green energy.

Taipei is the capital of Taiwan and the island’s political, economic, and cultural center. The city of Taipei currently has a population of 2.64 million people, which makes it a very important metropolitan region in northern Taiwan, along with the neighboring cities of New Taipei City and Keelung. Due to its advantageous geographical location; safe and comfortable living environment; and comprehensive infrastructure including transportation, information, communications, medical, and education systems, Taipei attracts multi-national corporations, international financial institutions, foreign consulates, and business organizations to have a business presence in and around the city.

The “services” industry accounts for 75% of the industry in Taipei; the rest is made up of the manufacturing, agriculture, forestry, fishery, and livestock sectors. Due to the concentration of financial capital, talent, technology, excellent economic activity, and professional services, the city’s development is focused on knowledge innovation. Currently, the city’s major development fields include information and communication technology (ICT); biotechnology; general merchandising (wholesale/retail); financial services; and the meetings, incentives, conferences, and exhibitions (MICE) industries, respectively.

Taipei has approximately 3,700 registered foreign businesses and attracts over 50% of the total foreign investment in Taiwan. Multinational enterprises prefer to establish their research and development centers, as well as their operational headquarters, in Taiwan. The Neihu Technology Park and the Nangang Software Park are two of the more popular high-tech clusters.

Taipei has a large number of academic research institutes, such as Academia Sinica, and 26 public and private universities, including National Taiwan University (NTU). Sixty percent of the Taipei workforce has higher education backgrounds, and top professional talent continues to drive industrial innovation and entrepreneurship.

Industry advantages in Taipei

Taiwan is world-renowned for its technology development, manufacturing, and operation abilities. The semiconductor market share reached 20% in 2019; the productivity of the wafer foundry is world-leading, accounting for 70% market share. IC package productivity holds a leading position in the world, accounting for about 50% market share. Therefore, Taiwan’s technology industry strength is in the lead globally. Fifty percent of overseas investment is concentrated in Taipei City, with nearly 70% of foreign companies based there. Moreover, newly emerging industries such as biotechnology, service, cultural and creative, and MICE have developed rapidly in recent years, receiving a lot of attention and positive recognition in international markets.

Overseas investment

Taipei City

Taiwan

%

FDI (US$ billion)

5.29

9.11

58.07

Number of Registered Overseas Companies

3,724

5,596

66.55

(Source: Investment Commission, MOEA, and Taipei City Office of Commerce, Q4 2020)

The ICT industry

There are over 12,186 registered ICT companies in Taipei City, with more than 206,000 people employed. Among these, top corporations such as Microsoft, IBM, HP, Yahoo, Google, and Cisco have invested funds and set up offices, making Taipei the first choice for domestic and overseas investment in the ICT industry.

Situated on the edge of the city, the Neihu Technology Park and Nangang Software Park possess excellent geographical locations with a convenient transportation network, comprehensive living facilities, and government policy support. For these reasons, Neihu Technology Park and Nangang Software Park are often chosen as hosts of R&D centers for companies the world over, attracting top-tier talent to both locations.

Let’s take a closer look at some of the development advantages both parks have to offer:

Neihu Technology Park

Neihu Technology Park is a competitive science park with over 5,202 companies, more than 166,322 corporate employees, and an annual production value of over NT$4.4 trillion, thereby generating tremendous GDP for the city of Taipei. Today, with the advent of the new economy, Neihu Technology Park is under pressure to innovate and transform. Considered a core industrial location for its location, the Taipei City Government will expand to six major city-owned properties, including the Dawan South Section Industrial Zone, Neihu 5th Redevelopment Zone, and Luzhou Village Industrial Zone. These new “areas,” if you will, are expected to serve as hubs for innovative research and development for upcoming industries.

Nangang Software Park

The companies hosted within Nangang Software Park place a special emphasis on software and biotechnology solutions. Future development of the park will be based on three major knowledge industries: biotechnology, IC design and digital content, and support of the services industry.

Future planning

Taipei City will soon promote Neihu Technology Park Version 2.0, which will utilize current real estate owned by the city government to attract newly emerging industries such as cloud computing, IoT, self-driving vehicles, and green energy. Promotion of the Beitou Shilin Technology Park project began in 2019, and promotion of the Ecological Shezidao project will start in 2025. All of the above-listed benefits of the the Neihu and Nangan Parks will be considered to help improve future ICT and biotech/health-care companies that establish their offices in this new Park.

Biotech industry

Taipei is the national hub for biotechnology and medical research. Academia Sinica and major medical centers are located in Taipei, while more than 20 universities and vocational colleges in the city have biotech departments. This means Taipei City has a high concentration of scientific research talent, attracting hundreds of biotech companies to set up shop in Taipei, including from sectors such as pharmaceutical manufacturing, health care, and functional foods.

Development advantages

  1. A high concentration of venture capital and financial headquarters: Due to the special characteristics of the biotech industry, it needs continuous capital investment. Taipei City is the financial center of Taiwan, with 90% of the country’s venture capital organizations and 85% of its investment bank head offices.
  2. Complete startup incubation ecosystem: The advantages of being near an urban area include entrepreneurial investment, R&D companies, startup incubation and talent development organizations, industry supply chain systems, and a fully provisioned clinical trials market.
  3. Mature clinical health-care market: Eight medical centers are located in Taipei, and all comply with central government regulation as well as the country’s National Health Insurance program. With this serving as the local healthcare system’s foundation, along with the city already playing host to numerous academic, hospital, and industrial leaders, Taipei is well-positioned to serve as a central hub for smart healthcare and biotechnology-related start-ups looking to test their new technologies, solutions, and services with greater efficiency and more immediate feedback.

Future planning

Looking ahead, Tapei City will move forward with the Nangang Biotech cluster plan. Located near the Nangang MRT Station, it will serve as a bridge between research results from Academia Sinica and the National Biotechnology Research Park. The plan will satisfy the research and manufacturing needs of clinical medical trials and link up with the services of the Ministry of Health and Welfare’s Food and Drug Administration and Center for Drug Evaluation.

Taipei City is also planning the Nangang Conference Center, Zhongxiao Campus, and Nangang Airport as bases to attract biotech companies and create a comprehensive biotech cluster.

Meetings, incentives, conferences, and exhibitions industry

According to the sessions and ranking of the 2018 global international conventions published by the International Congress and Convention Association (ICCA), Taiwan ranked 23rd worldwide and fifth place in Asia by holding 173 conventions. Of those, more than 100 conventions were held in Taipei, the most in the country.

From the Survey of the 2016 Exhibition Sales Area in Asia, announced by the largest global exhibition organization — the Global Association of the Exhibition Industry — Taiwan came in sixth place, including the second largest for COMPUTEX Taipei and the largest for Taipei Cycle Show, both of which were held in Taipei.

Development advantages

  1. Advantageous location: Taipei City is located in the center of the Asia-Pacific region and has convenient transport connections, which is advantageous for the hosting of international exhibitions. It possesses a flourishing conference and exhibitions industry with a high concentration of conference and exhibition service companies, catering/travel service providers, and conference and exhibition centers, comprising a complete industry network.
  2. International hosting experience: Taipei City has hosted a number of major international exhibitions, including Computex, SmartCity, TIMOS, and the 29th Summer Universiade in 2017.
  3. Application of exhibition and convention technology: Taipei possesses world-class technology and pioneered the use of UWB in human-computer interaction technology; the world’s first micro ultra-high–frequency RFID technology; and ultra-thin, soft paper speakers (FleXpeaker) developed by ITRI.

Future development

Taipei City will continue to develop related conference and exhibition facilities in line with the central government’s plan for a “National Conference and Exhibition Center.” The city will also promote the Nangang Conference Center to attract more international conferences to take place in Taiwan, as well as expand the conference and exhibition facilities in the vicinity of the Taipei Expo Park to promote the vigorous development of international events so that Taipei can stand out as an international expo destination.

Wholesale/retail

Taipei City has a host of commercial districts with a range of operational formats covering general merchandise, gourmet foods, and specific industries. There are eight general merchandise commercial districts, 27 gourmet food districts, and 24 districts dedicated to specific industries. The Xinyi district, the area in front of Taipei Railway Station, and Ximending are both important shopping districts that attract many international tourists to visit Taipei.

About ITO

In order to effectively assist domestic and overseas companies and entrepreneurs, the Taipei City Government’s Department of Economic Development established the Invest Taipei Office (ITO) in 2016.

ITO provides companies and entrepreneurs with knowledge and understanding of Taipei’s business environment, as well as of related policies and legislation. The ITO’s focus is to assist companies with various requirements for setting up businesses in Taipei City; it offers consultation, introduction, and resource consolidation services, as well as investment troubleshooting and business opportunity expansion guidance, all to promote Taipei’s industrial and economic development.

The free consulting service items of ITO are as follows:

  1. One-stop customized service
  • Investment information
  • Business investment inspection arrangements
  • Laws and regulations consultation
  • Visa application consultation
  • Subsidies information
  • Administrative assistance
  1. Interdepartmental integration platform
  • Convene interdepartmental meetings to lower investment barriers
  • Connect with the central government to provide administrative assistance
  1. Connect public-private service network
  • Referral to venture capital and networking events
  • Assist with land/office acquisition
  • Introduce to local talent

Our location and contact information:

Website: http://invest.taipei

E-mail: ito@invest.taipei

LinkedIn: invest.taipei

Tel: +886 2 2757 4518, +886 2 2757 4519

Address: 2F, North Wing, No. 1, City Hall Road, Xinyi District, Taipei City 11008, Taiwan

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