TINVA optimistic about Taiwanese Startup Developments in ESG

Taiwanese startups cannot engage in "me too" or "me better" businesses. Instead, they must plan ahead and develop "me only" technologies. Because the local market and scale of Taiwanese venture capital (VC), are small, it is not feasible to inves...

Taiwanese startups cannot be involved in "me too" or "me better" businesses. Instead, they must plan ahead and develop "me only" technologies. Because the scales of Taiwanese Venture Capital (VC) and local markets are limited, and Taiwan does not have a demographic dividend, this is why. Taiwan ITRI New Venture Association President (TINVA), Michael Kao stated that Taiwan should invest in cutting-edge technologies such as environmental, social and governance (ESG), smart manufacturing and pharmaceuticals. There is a good chance Taiwan can become a major hub for innovation and startups in the Asia Pacific region, given Taiwan's complete information-communication technology (ICT).

Mr. Kao suggested that the government could consider a more proactive approach to providing concessions for startups creating cutting-edge technology. This is to encourage businesses to adopt an operational model for the external use of innovation. The government can help enterprises transform and achieve diversified development while also accelerating the development innovative competencies in Taiwan. Mr. Kao also suggested that Taiwanese companies should be more proactive when investing in innovation. He suggests enterprises allocate 5% to 10% annually to collaborate with mainstream venture capitalists at home and abroad in order to invest in external startup.

Mr. Kao stated that Taiwan should be a "friendly base" for international startups looking to expand into the Asia Pacific region. This is something that the government should seriously consider.

The semiconductor industry is Taiwan's strongest industry sector. It has a significant future development potential, in both the production of precise machinery and upstream materials, as well as in IC design and compound semiconductors.

Taiwanese companies are also keen to get involved in environmental, social and governance (ESG), investing. ESG concerns have prompted the development and need for carbon neutrality and circular economy.

Based on the ICT industry's current footing, technological developments, talents, and many advantages, including an array of outstanding medical and healthcare professionals in Taiwanese, medical equipment has become a key area of innovation for Taiwanese startup companies.

ESG solutions, medical equipment, and semiconductors are all emerging trends that Taiwanese teams need to focus on. Due to the low birth rate, the severity of labor shortage issues will continue to increase in the future. This will mean that labor costs will continue to rise. Automated production will be more in demand around the globe. Smart manufacturing, which is characterized by net-zero emissions issues, will be a key trend in industrial development going forward.

Mr. Kao believes that Taiwanese enterprises and government must plan ahead to seize historic opportunities such as the China-US trade conflict and the boom in innovative technology over the next 20 year. This requires a strategic mindset and pioneering thinking. To plan for the next decade, the government should work with leading VCs both at home and abroad to either invest in or acquire innovative technology companies.

Mr. Kao stated that recessions are a good time to make investments for the future. He pointed out that startups are more affordable when the capital market is downturning. This is why now is a good time to invest in them. Taiwanese companies will help startups enter the Asia Pacific market by collaborating with top startups from Taiwan and abroad. Mr. Kao welcomes foreign startups to establish operations in Taiwan, using Taiwan's manufacturing resources and the Asia Pacific region's market resources. This will make Taiwan a key base for the Asia Pacific market. Taiwan will be a key hub for innovation in the Asia Pacific region. This is due to its competitive advantage as an open and free technological centre.