After the iWatch became all the rage, wearable devices have suddenly become the most popular IT product. Companies in the market rushed to introduce various devices, such as smart watches, smart wristbands, and even smart necklaces and earrings, all of which can detect biosignals through built-in sensors. However, most wearable devices share common drawbacks. In addition to inaccurate detection under vigorous exercises like jogging, some medical devices require users to change their lifestyle, which significantly reduced their use rate. SmartFace Inc, led by professor Bing-Fei Wu of National Chiao Tong University (NCTU), has developed a vision-based biosignal health management system to measure and detect biosignals through visuals without contact. The system's accuracy is higher than that required by medical standards and can be applied in medical and financial sectors.The application of wearable devices in the medical sector started early, then the IT industry launched related products, including all kinds of smart wristbands, glasses, and watches. These wearable devices use built-in sensors to detect biosignals, but they lose their accuracy if not aiming at certain parts of the body (i.e. pulse). As for medical grade products that require a high standard on precision, some need to be worn over long periods of time, such as heart rate detectors worn by cardiac disease patients at home or devices for detecting sleep apnea. These devices affect users' daily living. In light of this, Wu focused on precision and easy application as the two major principles when conducting research and development. His vision-based biosignal health management system can accurately detect biological information without users feeling anything.This system first obtains facial information through a camera and then shows the heart rate and blood pressure after the analysis by special algorithms developed by FaceHeart Inc. Accuracy can reach 2-3 bpm when users are inactive, not worse than the medical standards. It can still be use even during jogging on the treadmill. Also, users don't need to purchase a high-precision camera. Heart rate detection only requires cameras with a frame speed of 30 fps, whereas the detection of blood pressure will require cameras with higher specs, but Taiwan suppliers are capable of making both kinds of cameras.The vision-based biosignal health management system of FaceHeart Inc. has diverse applications. It is for users who need to detect biosignals without making contact with the device itself. The system is most commonly seen in elderly care. To take care of elders in the family, some people will purchase devices like smartwatches for them to wear, but the elderly are not familiar with electronic products, which are eventually cast aside without being used. The system from FaceHeart Inc. can have a camera set up in front of the television so the elderly can have their heart rate and blood pressure detected while watching TV.In addition to the medical sector, financial institutions are starting to use the vision-based biosignal health management system. In 2017, Professor Wu's team at NCTU won first prize in the smart financial system competition by the Shanghai Commercial and Savings Bank, Ltd. (SCSB). They then worked with SCSB to integrate it into the Know Your Customer (KYC) system, which companies use to identify customers. Scams are on the rise in recent years. In the past KYC tried to prevent dummy accounts by relying on questionnaires to conduct background checks on customers applying to open new accounts. But SCSB uses the vision-based biosignal identification system, allowing employees to immediately determine whether the applicants passes the KYC procedures, reducing the employees' workload.Both the hardware and software of this health management system are independently researched and developed by Wu's team at NCTU. Even the microprocessing chip comes from the cooperation with Taiwan's MediaTek Inc. It is an AI system that is completely self-made in Taiwan. Professor Wu pointed out that the system is extremely convenient to use, but they encountered many challenges during research and development. For example, they need to figure out how to ensure accurate measurement under circumstances without ample light, such as nighttime or in a dark room. Also, cameras on the market automatically adjust the aperture and shutter. This image also affects the analysis of AI. The R&D team spent 5 years overcoming all challenges and smoothly commercialize this new technology.As for the business model, Wu says that technology will have two directions: One is to authorize the core software to companies so the system can be built into cameras. The FaceHeart Inc. team can customize the software to suit customer products. The other direction is to partner with existing camera companies. For instance, cameras from security monitoring companies can combine FaceHeart's Al system to have more added functions. Wu expressed that incorporating AI into visuals has become a trend in the industry, but FaceHeart does not delve into mass facial recognition but a rather accurate biosignal identification to differentiate its market from competitors and aim for high-value business opportunities in a new territory.

Today people use their computers or smartphones to access digital maps, find a parking space or check out restaurant recommendations. This is part of people's everyday life now. However, many people may also have had the experience wherein the vacant parking space indicated on their phone was already taken when they got to it or the restaurant of interest to them had closed down six months before their visit. In other words, the city information people have access to is all outdated. In contrast, OmniEyes - Next-Generation Mobile Video Platform enables the creation of a city's real-time image data though the easiest and ready-to-use approach.Founded by the team led by Chun-Ting Chou, associate professor, Graduate Institute of Communication Engineering, National Taiwan University, as well as Shou-De Lin and Ai-Chun Pang, both professors of the Department of Computer Science and Information Engineering, National Taiwan University, OmniEyes set the goal to bring its research results to reality within three years from the time when it decided to join the Ministry of Science and Technology's Startup program in December 2017. Both the team's devotion and the fact that they have a highly feasible idea allowed their research to reach maturity in late 2018. Then backed by venture capital investments, the team established a startup firm to commercialize their research.OmniEyes - Next-Generation Mobile Video Platform makes city information more up-to-date and valuable resources more readily available through fog computing. According to Chou, AI has become the most critical trend for the Information Technology (IT) sector and images are the most widely available data today. With dash cameras installed on virtually every vehicle nowadays, the amount of video data is massive. If we are able to make good use of the video data, the possibilities of innovations are endless and we may even be able to reshape digital map data.Chou takes Google Maps for example. It is the most widely used digital map and its precision is rapidly improving through the collection of massive usage data. However, the city information available on Google Maps is updated every 1.5 to 2 years. In other words, what users see from Google Maps on their mobile phones is old information. OmniEyes, on the other hand, gathers images captured by cameras installed on buses, taxis and delivery trucks on the road such that image data on the back-end platform is refreshed once every five minutes. The information is kept up-to-date so that users can stay on top of city dynamics in real time, rather than fall out of sync with outdated and static information.It is not easy to achieve OmniEyes' goal. Lin points out dash cameras currently on the market mostly only have recording function. Even if they are added with communication modules to transmit the recorded images to the back-end platform in real time, the transmission of the video files can consume a lot of bandwidth due to their large sizes. Furthermore, 99% of the video footages captured by the vehicles on the road are not useful data. The biggest challenge is how to add lightweight AI capability to dash cameras with limited functionality so that they can filter out useless video data before transmitting them to the back-end platform to save bandwidth.Prof. Pang pointed out that fog computing and the increasingly popular edge computing work by having the terminal equipment handle a certain amount of the system computing, reducing the system latency and the workloads of the cloud platform and bandwidth. But in contrast to edge computing where the terminal equipment must possess computing power, fog computing extends the scope to include handsets and even dash cameras that offer very low computing capabilities. The coverage of fog computing is therefore much wider. For OmniEyes, dash cameras are its major terminal device. To address such a challenge for academic research purposes, a high-caliber dash camera may be the solution, notes Chou. However, OmniEyes set its heart on designing a practical and marketable product so it insisted on making use of dash cameras on the market and equipping them with AI capability by implementing feasible algorithms. Through a year of R&D efforts, OmniEyes has enabled dash cameras on 100 buses, 40 taxis and 10 delivery trucks to send image data collected on road trips of up to 10,000 kilometers daily to the back-end platform, making city information available in real time.Chou proposes a three-phase plan for OmniEyes going forward. For phase 1, OmniEyes endeavors to make its technology ready to use. For example, using cameras already installed on a variety of vehicles is a viable way for OmniEyes' technology to create values. For phase 2, OmniEyes looks to license its technology to manufacturers for them to integrate OmniEyes' software on their automotive devices. For phase 3, OmniEyes will make its image data platform available through a mobile phone app, which consumers can download to access city information in real time. Chou envisions OmniEyes - Next-Generation Mobile Video Platform as a search engine for the real world. Anyone can contribute information to the platform while enjoying access to it. The model of data sharing and co-creation enables more effective use of city resources.

What players the hub should have is critical to the issue in discussion. The first and foremost important thing is the right attitude. Language proficiency is an essential skill to startup teams. Just being able to communicate when making initial contact is sufficient but when it comes to business negotiations, it is important to maintain professionalism and employ professional services. They also need to be able to grow internationally. The second category of players will be investors from home and abroad including international venture capitalists (VC), multinational corporations and incubators. The third category of players will be government agencies that are willing to communicate and get their hands dirty. The fourth category of players will be traditional and non-traditional media publishing content in multiple languages and other startup ecosystem partners capable of making international connections.After we are clear about the players, we need to figure out how to bring them together to engage in interaction and communication on a scheduled or unscheduled basis so that the hub can take shape and carry on. The following discussion is directed at how Taiwan can become a startup hub, including a description of the issue and a summary of the approaches to improvement and implementation.An approach to infrastructure improvement: event + research + multi-language proficiency + multi-themeParticipation in events is the most effective way to make connections and engage in communication. However, an event's target audience, theme, nature and marketing campaign are critical to its success. Before holding an event, the organizer should establish who the target audience (TA) will be, how they can be reached and what the expected effect and influence will be. It must be based on a certain amount of data or research work. Afterwards, the organizer should keep track of the event data in the long run to help improve and perfect the planning of future events.RISE (affiliated with Web Summit originally held in Ireland), TechCrunch Disrupt SF, SLUSH, Tech in Asia and Startup Thailand are some of the show events maintaining a complete collection of participant data and exhibition statistics throughout their history. In Taiwan, leading event Meet Taipei, followed by Findit and Digitimes platforms, also gathers data on the Taiwan ecosystem through events. This is part of soft infrastructure buildup. Each event organizer has its own strength and advantage. Multi-language dissemination of information, such as updates on success stories of the Taiwan startup ecosystem, statistics and analyses on technology and investment trends as well as industry dynamics, will be Taiwan's first step to becoming Asia's startup hub and a continuing effort going forward.It is costly for visitors to come to Taiwan from abroad, so it is important that their itineraries are arranged effectively and efficiently. Enabling them to gain an understanding on Taiwan's culture and characteristics in their main activities or engaging them in other international or local events will add values to their business trip to Taiwan. To achieve such a purpose, a one-stop information platform plays an essential role. Furthermore, precise planning for TA interaction is imperative especially for events where multiple themes synergize.Take Computex and InnoVEX for example. Computex is attended mostly by vendors, manufacturers and traders who are in search of orders so the Computex venue is full of people who work in business development (BD), marketing, distribution and sales. InnoVEX, on the other hand, targets early investors, startup firms and high-tech professionals. The goal is for the two groups to actively interact. That is, medium and large corporations should have a chance to interact with small and innovative firms to create win-win situations for both. However, a close analysis on the events held so far will indicate that a major role is missing – PMs of large corporations. PMs are those who know best whether a startup will be able to collaborate well with their corporation. As such, the event organizer should mull how to draw PMs to InnoVEX.Let's first be clear on one thing: investor + startup ≠ investmentA good deal can attract investors. However, whether an investment can actually happen depends on the decision of different types of investors. Angel investors usually care more about the team members, their development potential, social contribution and minimum viable product (MVP). VC or incubators consider more aspects including people, funding, market and technology. From the people perspective, they look at the team, development potential and external partnerships/liaison skills. From the funding perspective, they examine finances, capital size, shareholding structure, exit mechanisms, valuation and previous round of investors. From the market perspective, they evaluate the business model, profitability, market positioning, competitors, product or service competitiveness, social contribution, product/market fit (PMF) and corporate/industry risks. As to technology, they assess the patent/technology strength. Moreover, VC or incubators also take into account the fundraising condition, limited partner (LP) preferences, project schedule planning, return of investment, business connections and resources, industry trends, technological edge, macro environment and government regulations.In the case of corporate venture capital (CVC) or strategic investment from large enterprises, they examine a startup based on the team, development potential and external partnerships/liaison skills from the people perspective. From the funding perspective, they consider finances and previous round of investors. From the market perspective, they evaluate business model, PMF, market positioning, competitors and corporate/industry risks. Lastly, for technology, they assess the patent/technology strength and relevancy to CVC/large enterprise's own development direction. They also examine their own purpose, expected return, payback period, industry trend, technological edge and macro environment.From the above brief summary, except in the case of angel investing, an investment deal is generally considered from multiple perspectives and things can get so complicated that there is no one simple golden rule. Each case of a startup successfully securing funding is unique. To plan startup investments systematically, government agencies must take the lead or a large venture capital firm like Sequoia Capital takes the initiative to strategically fund an entire industry chain with promising potential.What the government can do is to expedite the buildup of an ideal investment environment. For example, it can aggregate regulations and information resources and make them available while putting efforts into the construction of software and hardware infrastructure so that high-quality startups can raise their visibility and accelerate growth and then good investment deals can come into place. Furthermore, the government can also work with media firms to publicize Taiwan and attract international attention. With the business environment continuing to improve, startups can focus on what they do best.Frontline government officials should join the battleFrontline government officials in discussion herein does not refer to high-ranking officials (bureau directors and above) getting involved in event participation, forum speeches and communication with startups and investors at home and abroad. Instead, government agents one or two levels lower in the ranking including official representatives or PM, section chiefs and team leaders should be committed to getting their hands dirty. Foreign startups and investors need an efficient way to stay aware of available resources and information. It would be best if government agencies in charge can appoint official representatives to make direct contact with them. Moreover, getting government agencies involved in the communication will enable them to gain in-depth understanding on what attracts foreign people to Taiwan or what hinders their development in Taiwan.Taiwan's government agencies currently engaged in guiding startup development include the National Development Council, Ministry of Science and Technology, MOEA Small and Medium Enterprise Administration and Financial Supervisory Commission. In addition, Taiwan Start-Up Hub is a startup cluster supported by the Executive Yuan that provides startup courses and hosts a startup community, aimed to deliver and exchange startup information.Moreover, there are Taiwan Startup Stadium (TSS) and Taiwan Innovation and Entrepreneurship Center (TIEC), which specialize in connecting people and businesses internationally. Governments around the world are endeavoring to foster their startup scene by instituting laws and regulations to help build a solid foundation. It is particularly important that startup policies are effectively conveyed to startup teams. By providing startup teams a one-stop service integrating all startup resources will help them save the time and effort of having to search for information on startup subsidy or assistance programs and thereby maximize the benefits of the resources.The media will be the best startup ecosystem partner helping them connect to the worldProfessional media firms are experts at precisely grasping information and TA while they may not be good at being "broad" and achieving "cohesion." Non-traditional media, such as social networking sites and YouTube, are characterized by targeting a specific area and having strong cohesion. As such, different media may have different views on the same subject. Professionalism and cohesion can be manipulated through marketing efforts. Taiwan, looking to become a startup hub, lacks such marketing ability.In other words, international marketing and connection should be the common goal for the entire startup ecosystem. Startup teams, early investors (e.g. angel investors and VC), government incubators, private incubators, startup contest organizers, startup communities, large enterprises, media and other supporting entities (e.g. financial advisors, lawyers and accountants) should all work together toward the goal so as to foster an open startup ecosystem, which will in turn kick start a positive cycle pushing Taiwan toward becoming Asia's startup hub.To sum up: Satisfying needsFor Taiwan to become Asia's startup hub, the first question to ask is why startups should gather in Taiwan. What does Taiwan have to offer to draw international investors, large enterprises, startups and media? Then the question is how. Simply put, the answer is to "satisfy needs." Investors need investment targets. Startups need partners and investors. Large enterprises look for future partnerships and new technological applications. International media need hot topics.Take the five roles for example. They have needs from one another and also provide for one another. To do matchmaking among them, more thoughtful planning and execution as well as precise coordination and arrangement is required. Through data collection and analysis, the preferences and needs of each group can be better understood. Through active and passive information dissemination, Taiwan can develop a positive image among the international community as startup hub. With partnership and investment deals being made one after another, the hub can continue to flourish.(Meng-Hsin Yang and Chia-Ning Chou are assistant researchers at Taiwan Institute of Economic Research)

Drastic changes in the global industry environment, regional politics, trade tension and rapidly evolving technology innovations are making it more and more challenging to do business in recent years. Disruptive iABCD technologies (IoT, artificial intelligence, blockchain, cloud computing, big data analytics) are coming on strong, ready to reshape the business world. Although these new technologies may bring unlimited opportunities, they also cause increasing concerns in security, privacy, regulations and social trust in the industries that make use of them. Businesses today not only have to cope with the competition in products and services but more importantly, they need to build up their abilities to protect sensitive customer data so as to maintain customer trust as they expand into new territories. With these new developments come more challenges and opportunities as well.According to PwC's Global Digital Operations 2018 Survey, PwC interviewed 1,155 manufacturing executives in 26 countries to develop an index that ranks companies by digital operations maturity, from Digital Novices, Digital Followers, Digital Innovators to Digital Champions. Some of the key findings include:Only 10% of the companies can claim the distinction of being called Digital Champion. Two thirds of the companies have not started digital transformation or only have undergone moderate digital transformation.Asia-Pacific is leading the way to digitization. Asian companies have introduced digital products and services at a much faster rate than their counterparts in the other areas. This is the result of the enthusiasm of the region's young, tech-savvy corporate managers to embrace digital technologies, as well as soaring production costs that are forcing Asian companies to digitize key operation processes to maintain competitiveness. Digital Champions create value through integrated Customer Solutions ecosystems. Digital Champions serve customers by integrating Operations, Technology, and People ecosystems to serve customers with competitive, end-to-end solutions.From these findings, we can see that integration, new technology and ecosystem are undoubtedly the most critical key words to industry competitiveness going forward.With these key words in mind, what is the next step for Taiwan's digital transformation? The Taiwan manufacturing sector has been coping with many challenges, including trade barriers, rising costs, labor shortage, global competition, supply chain transformation, environmental protection pressure, labor law changes and tax law changes. Almost all business executives find it difficult to maintain operation. Only by continuingly upgrading themselves, refining their management skills and strengthening their competitiveness can they make breakthroughs and thrive in a highly competitive environment.According to PwC's 22nd CEO Survey: Technology trends report 2019, 50% of tech company leaders were "extremely concerned" about finding the talent and skills they needed. Creative talent is hard to find and that has become tech leaders' top concern. With the whole world aggressively engaging in digital transformation and industry upgrade, what opportunities are there for Taiwan firms and startups?To answer the question, let's first look at market changes. Before a startup sets up shop, the question to ask is whether they will sell products or services to businesses (B-side) or consumers (C-side). According to PwC China's New Trends of Technology Enabling To-B Services Whitepaper, the market in the Internet era has little room for startups (T) with innovative technologies to grow from C-side. In other words, most of the topics or business models have been explored by other startups. Furthermore, with medium and large corporations taking hold of marketing and channel resources of the consumer market, it will be very risky for startup firms to insist on creating a blue ocean market through a 2C model.We can foresee the trend that future startups will likely be operating on the mainstream T2B2C model but they will need to search for upstream opportunities. Tech startups should think about how to apply their strength to provide B-side customers better solutions. In the high-tech era, with IoT and smartphones being widespread, the T2B2C model has become popular and has developed in depth across upstream and downstream industries, which has reshaped user experiences of services and products and further created ecosystems combining various platform systems, igniting possibilities in many aspects for the business environment.What does the T2B2C trend mean to Taiwan startups and firms? Taiwan has fostered a complete supply chain and premium workforce with its focus on ICT industry development over the years. This is certainly Taiwan's biggest advantage. Many international corporations have chosen to set up their R&D or procurement centers in Taiwan, mostly eyeing Taiwan's strong supply chain and engineering talent. This is proof that Taiwan with such unique advantages still appeals to global conglomerates.Taiwan can build on top of its current advantages. As part of the local industries' urgent efforts to upgrade and transform, medium and large corporations can invest in or acquire startup firms as a way of external innovation management. This approach will allow them to save the costs of having to employ in-house R&D engineers or work with startup firms to jointly develop product technologies and commercial applications to grab preemptive market opportunities. To Taiwan startup firms, they need to leverage their existing strength and technologies to develop 2B solutions based on iABCD technologies. They can first develop products in Taiwan, including all steps of the processes from idea, design, product research, testing and small-scale pilot run. Then, the products can be launched into other regional markets or the global market. Furthermore, with medium and large corporations encountering an innovation bottleneck for 2B or 2C model, startup firms boasting their creative power stand a good chance of discovering additional opportunities.Amid the time when all industries are actively pursuing digital innovations, the T2B2C model is exactly what Taiwan startups need to transcend national boundaries and compete on the world stage. What their development strategies are and how they can collaborate with large enterprises are the challenges to startups' strategic planning ability and vision.(Shih-Jun Huang is managing CPA for startup services, PwC Taiwan)

The Global Entrepreneurship Monitor (GEM), co-issued annually by the US-based Babson College and London Business School since1999, has been the world's largest entrepreneurship research project, with its research results serving as important references for nations to formulate entrepreneurial policies. According to the 2018/19 GEM report, 9.5 out of every 100 adults in Taiwan are engaged in early-stage entrepreneurial activities, and the ratio has risen for two consecutive years, indicating Taiwan's growing awareness of startups.Compared to the 2017/18 report, Taiwan has made progress in the Entrepreneurial Framework Conditions of Government Policies, Entrepreneurial Finance, and Commercial and Legal Infrastructure, indicating the government is actively improving the entrepreneurial environment, such as helping startups obtain early-stage operating funds through the Business Angel Investment Program enforced by the National Development Fund. This article will discuss the government's tax incentives for startups and its efforts to attract international startup talent.Based on KPMG's experiences in advising startups, the issues most concerned for their early-stage operations are mostly associated with taxation. For instance, when a startup is smoothly proceeding with fundraising, the tax efficiency for investment paths taken by its domestic and overseas investors have to be assessed. In addition, if a new venture wants to obtain technologies it needs by allowing the technologies to be converted into shares, then the technology-based shareholders will also face the tax payment issue. Even if a new business seeks to retain quality employees by allowing them to become shareholders, they still have to deal with taxation.But there are substantial tax incentives or preferences stated in the Statute for Industrial Innovation and the Act for Development of Small and Medium Enterprises (SMEs). Moreover, in order to continue promoting the establishment of innovative startups, the government is amending and expanding the Act for Development of SMEs into the Act for Development of SMEs and Startups, highlighting the government's efforts for advancing innovations and startups. The "taxation environment" chapter in the expanded bill may cover tax incentives for knowledge innovation and digital transformation, including tax credits for investments in the segments of smart machinery, IoT, AI and system integration. Also, in view that being acquired is one of the exit strategies for startups, the government is also revising the Business Mergers and Acquisitions Act to allow individual shareholders of a startup to defer tax payment for the shares they purchase at premium prices from the surviving company after the startup is acquired, so as to spur M&A of startups.Furthermore, the government has spared no efforts recruiting international startup talent. The newly enforced revisions to the Act for the Recruitment and Employment of Foreign Professionals mark the largest opening-up for international talent, sharply relaxing regulations governing their work permits, resident visas and residence applications and offering them pension protection and tax preferences. The biggest highlight of the revised bill is that a foreign professional in a special sector may apply for a four-in-one Employment Gold Card that combines work permit, resident visa, alien resident certificate and re-entry permit. The card will be valid for one to three years, and can be renewed upon expiration, which is quite convenient for some foreign professionals. Moreover, in case a foreign "special" professional has for the first time been approved to reside and work in Taiwan, then within three years starting from the tax year in which the professional meets the conditions of residing in Taiwan for a full 183 days of the year and scores annual salary income of over NT$3 million, the part of the professional's salary income above NT$3 million in each tax year shall be halved in amount in the calculation of total income for the assessment of individual income tax liability in that year, with his or her income earned abroad not having to be incorporated into basic income tax statement. This is a highly attractive tax preference scheme for high-tier foreign professionals.Despite a growing practice in Taiwan, creating startups is not an easy job. Besides difficulties in raising funds, entrepreneurs have to face complicated taxation and legal issues. The government's high regard for startups can be evidenced by its growing relaxation of relevant regulations. Besides devoting more efforts to R&D or business development, entrepreneurs can well capitalize on diverse resources provided by the government to accelerate their startups' advances on the road to success.(Daisy Kuo, Hazel Chen and Vivian Ho are accountants from KPMG Startups and Innovation Taskforce)

Enterprise- and SOHO-use networking device maker Edimax Technology has globally deployed more than 4,000 AirBoxes, an air quality detector and monitor, according to the company.The deployment consists of more than 3,000 AirBoxes in Taiwan, mostly in its six biggest cities; more than 1,000 units in South Korea; about 100 units in Malaysia; fewer than 100 units in Bangkok, Thailand, Edimax said.The second-generation AirBox comes with an LED display for push notification of air quality data, mainly densities of PM2.5, carbon monoxide, TVOC (total volatile organic compounds) and HCHO (chemical formula for formaldehyde), Edimax noted.For the air quality detecting and monitoring business, China, Southeast Asia, South Asia and Africa are target markets, Edimax indicated.Edimax has been working with some large hospitals and universities in Taiwan to provide air quality data for their development of precision medicine and remote medical care solutions.Edimax AirBox models Photo: Mark Tsai, Digitimes, May 2019

Tech startup ecosystem, word for word, is an ecosystem which has an organic and interactive relationship among different parties with two key components: technology and startup. More specifically, startups are in the center of the ecosystem, surrounded by other entities/organizations (investors, universities, corporate/industry, government, media, etc.) and individuals (talents/startup-to-be).Technology, on the other hand, is how everyone in the ecosystem gets connected. The ecosystem gets its organic evolution with the advance and commercialization of technology research. Big companies embrace open innovation strategies so as to be fast and nimble. It's about accessing diverse range of talent, specifically, people who are willing to take risks. It's also about creating a virtual team outside of existing organizations, and injecting wider and diverse innovative energy into the internal team to accelerate time-to-market.Taiwan's tech startup ecosystem has its unique advantage that no firms in the world should miss when making their innovation strategies. To begin with, there is abundant high-quality technology talent in universities and industries, such as the semiconductor, electronic manufacturing and healthcare sectors. Those industries and talent are perfectly in line with key technology trends such as those of AI and 5G; and it's no surprise when big firms such as Microsoft or Google set up R&D team here. Aside from that, the tech ecosystem of Taiwan has been well-known as trusted partners to the multinational companies, such as TSMC (semiconductor foundry house) and Largan (camera lens provider). And it's a good time now for global firms to invest in Taiwan tech startup ecosystem.First of all, there is an increasing number of startups established by entrepreneurs with industry experiences. After seeing high growth in the previous two decades, thanks to the PC/Internet/mobile phone boom, the industry is again getting mature, driving experienced people to start actively seeking opportunity outside of the corporate environment. They are also being motivated by promising technologies of AI, blockchain and others. One example is Kneron, which has been recently selected as one of the 10 Coolest Startups of Taiwan in 2019. It was founded by a group experienced people from the semiconductor industry and academic bodies.Secondly, Taiwan has one of the best healthcare system in the world; and more and more people in the medical/healthcare sector are working closely with those from the ICT/software segment to jointly establish new ventures. An Example is Aetherai, winner of the 2018 Nvidia Inception Award in Taiwan. It is a startup combining talent from the medical and AI sectors to develop AI solutions on an end-to-end AI platform.Finally, the Taiwan government has invested heavily in building a more globally connected, robust tech startup ecosystem in the past five years offering grants and subsidies. For example, Taiwan Tech Arena, the flagship tech startup ecosystem development program organized by Ministry of Science and Technology of Taiwan, not only invests in encouraging startups to go international (like attending CES), but also builds a platform for private firms, startups, investors and people with industry experiences to work closely together and accelerate the growth of new ventures. Firms can easily leverage the platform to build its connection with the tech startup ecosystem in Taiwan. A growing number of multinational companies have started collaborating with Taiwan's tech startup ecosystem. The following are examples of big companies' approaches:Corporate innovation award: This is the second year of Audi Innovation Award (AIA) in Taiwan. AIA has the objective of raising awareness of Audi R&D and the company's needs of support from Taiwan tech startup ecosystem. It seeks innovative ideas and technologies from startups, universities and industries about AI, new business models, sustainability and so forth.Startup Competition: Qualcomm just started the Qualcomm Innovation in Taiwan Challenge (QITC), seeking inspirations from startups in 5G, AIoT, MR/AR related areas in line with the company's business goals. Qualcomm will support the startups with technology resources while working with Taiwan Tech Arena (TTA) to provide supportive business acceleration program for the shortlisted startups.Supportive programs: LINE has launched ProtoStar program calling for new ideas and startups to build new applications based on LINE platform. Startups selected could get free credit and additional technology resources to build their products. This approach is typically adopted by platform providers such as LINE, AWS, Microsoft and vertical financial services. Taiwan-based CTBC has a blockchain lab with the objective to build collaboration with global startups. Service provider PwC also has introduced its accelerator program to leverage its business network to support growth of startups.Venture building: This is a startup strategy with a long history, with one of the most famous example being Idealab, founded in 1996 in the US and have created, grown and spun-off a diverse range of companies. Companies who identify trends and opportunities but lack in-house motivated or skillful employees could come to a specialized organization such as idealab or accelerator to jointly develop the idea and recruit experienced entrepreneurs and teams to build up a startup. Techstars, a well-known accelerator based in the US and has collaborated with TTA in a series of startup ecosystem building events, just announced its new program. The typical value proposition from those specialized accelerators is how well-connected they are in the tech ecosystem and those experienced and highly motivated entrepreneurs could quickly execute and lead the newly formed startup to success.(Rich Fuh is partnership director of Taiwan Tech Arena.)Taiwan Tech Arena

TH Tung, chairman of Taipei Computer Association (TCA), likens the startup scene - whose fundamental elements are capital, talent, technology and market - to wine making, which depends on the sunshine, rainfall and terroir. Apart from these, the type and quality of the grapes are also very important.That is to say, the characteristics are very important in raising the added-value. There have been so many different wines using various types of grapes around the world, but Burgundy winemakers have been sticking to one single grape for their red wine, and yet they still manage to stand out in the industry. This is because the wine from this appellation has its characteristics and clear market target.Tung takes his analogy further to the watchmaking industry. Electronic watches are the mainstream of the market, and the popularity of the Apple Watch and other smartwatches has been rising. But the Swiss makers of mechanical watches have never lost their appeal to consumers of the high-end market segment.Tung noted that Taiwan does not lack capital, but the concern is how to direct these investment funds into startup businesses that may stand out from their international competitors. He disagrees with the idea that the government should make a policy to encourage a massive influx of capital into Taiwan. He said that without a clear set of regulations to implement to such policies, a lot of the funds would end up not in the tech sector, but rather in the real estate market, shooting up housing prices in Taiwan and creating a bubble in the stock market.Taiwan's characteristicsIn the face of growing competition from Southeast Asia, Tung said Taiwan, with limited land and a small population, is very similar to Israel, Singapore and the Netherlands, and it needs to develop its own characteristics and focuses on specialized services in order to stand out from the global IT ecosystem, and create a "Taiwan brand." The road to innovation will lead Taiwan to see fast growth again in the future, Tung believes.The government plays an important role in economic and technological developments. The developments in Japan and Singapore are examples. Singapore is high in the rankings of countries with a free market economy. But its government has been embracing a planned economy, having successfully turned the country into an important petrochemical hub in the area. It has also become a financial center, thanks to government policy support.Singapore has a large population of migrant workers, all of whom stimulate developments of various business sectors that provide services and support for the workers. The city state may not be much bigger than Taipei, but it is the destination of an annual volume to 15 million tourists. To boost its tourism, Singapore has made policy changes that were unthinkable in the past, such as legalizing gambling.Tung said the lesson to be learned from Singapore is that there must a balanced development. Taiwan should not rely too heavily on its ICT exports; it must maintain a balanced development.Japan may not be as open to foreign workers as Singapore, but the Abe government has already introduced a new policy trying to attract more foreign workers.For Taiwan to attract foreign talent and create an optimal environment for startups, it must introduce ways to relax the restrictions on foreign investment, such as easing the visa requirements.The government roleWhile Tung shows skepticism about how market economy and planned economy can really work together seamlessly in Taiwan, he still thinks there is room for the government to make changes in terms of opening the door wider to foreign professionals.Tung said he can foresee that the gradual relaxing of regulations and establishment of IT industry infrastructures will motivate more Taiwanese investors to return home, creating job opportunities. This would boost the startup scene in Taiwan, as well as the quality of life and jobs.But he identified one major problem with the government's calls for businesses to move their manufacturing operations back to Taiwan from China - a trend accelerated by the escalating US-China trade war.Relocating a plant is not just about moving the equipment and recruiting assembly line workers for the relocated the plant. It will need a team of managers to run it. The original team should be able to make the relocated plant up and running fast, but the government is not supporting the idea of letting Chinese managers come to work in Taiwan, making it difficult for Taiwanese businesses to relocate their manufacturing plants back home.Many Taiwanese businesses have clearly shown strong intentions of returning home, but the problem with the relocating of the managers needs the government relaxing the regulations.AI and 5G: The 'magical' innovationsWhile 5G and IoT promise explosive growths of the next generation, Tung noted that every era has its own "magic" that boosts the economy. Japan relied on washing machines, refrigerators and TVs to get out of the economic doldrums in the post-World War II era during the 1950s. And in the 1960s, the "magical" products were cars, color TVs and air conditioners.Tung said the color TV fad that Sony created at the time was comparable to what we feel about the trendsetter, Apple, of the present time. The birth of air conditioners gave people more comfort on hot summer days. Tung said such changes that increase value and solve problems are what tech innovation is all about. But he thinks management of innovative technology is as important as the hardware and software technology itself.ICT vendors have been able to make a living as long as there are customers buying their products. But in the AI and 5G era, things may work differently for businesses. With so much R&D going on and so many innovative ideas emerging, it is the infrastructure of smart city that will be necessary to materialize the R&D and innovative ideas of businesses. That means that businesses' efforts alone will not be sufficient; it will need strong government support - from the national to local levels - to upgrade and rebuild the cities in order to materialize the AI and 5G applications.Tung thinks 5G, AI, edge computing all offer good opportunities for Taiwan's startup sector. For example, it is much easier to implement self-driving in Taiwan than in Australia, where the vast territory and sparse population makes it cost-inefficient to make intensive and extensive deployments to enable self-driving.For 5G, China and South Korea are looking to begin commercialization in 2020, but it may take Taiwan two to three more years to catch up, Tung said.He said 5G development involves a lot of investments. The costs for 5G licenses and infrastructure constructions are key to whether smart city and self-driving cars can succeed. If the operators have to spend big in deploying their networks, consumers will have to pay expensive rates, undermining the popularity of 5G. But if the operators have to sacrifice their profits in order to boost the number of users, it will leave them with few resources to continue building and improving their networks.Unicorns and disruptive businessesAccording to Taiwan's government figures collected between 2007 and 2014, the survival rates of startup businesses from the first to fifth year of operations are 89%, 78%, 69%, 62%, and 57% respectively. They are similar to those in the US, Germany and other countries that are known for their startup scenes.Tung said it is not easy for Asian startups: The risk of investment is high, and it is very difficult for one to last beyond 10 years. Startups may all want to become unicorns - privately owned businesses whose market cap is estimated at more than US$1 billion - but Tung pointed out that few unicorns have been able to make a profit. He said the aim of incubating a unicorn should therefore focus on what value and service it can bring to society.The mentality of investors has changed. In the past, a company that wanted to get listed on a stock market would have to make profits for several years before it could stand a chance of submitting an application for listing, according to Tung. But now investors look for companies with potential, allowing them to go public before making profits. Google and Facebook are examples. Google offers Google Map, Gmail and Android, with skeptics initially asking how it could make money by offering so many free services. But these companies have now become giants whose market cap and revenues are among the top of all IT firms in the world. Their operations have also changed fundamentally people's life and disrupted all business models and supply-demand patterns.But different countries have their own unique situations and progress of development, Tung said, disclosing that some governments in this world may still require their suppliers to provide PCs that can support floppy disks - which still functions as a main storage format of their data.If Taiwan wants to play a leading role in the next wave of IT development, it must create a friendly and diverse environment, making the best use of its talent and resources, according to Tung. It would then be able to help its enterprises and startups compete with international companies on an equal footing.But the slow progress in making rule changes cannot be totally blamed on the government because there are many areas in AI, such as the medical sector, that need extra caution in planning. He said policymakers must seek advice extensively, and learn from other countries, in order to find a new way for the development of Taiwan's startups and emerging technologies.Taiwan aspires to become the Asian Silicon Valley, but Tung said such an ambition should not simply mean building more factories. It must be implemented with a broader vision and clearer directions in the form of an international industrial park. Tung suggests that a tariff-free repair hub within one kilometer of the airport could save a lot of time and paper work, shortening the time to fix devices sent from abroad. Such a value-added operation would attract international investors and make it a new practice for the IT ecosystem. That is the reason why Pegatron (where Tung is chairman) maintains international repair centers in Taoyuan, Japan, California and Shanghai, with a total workforce of over 2,000. Income from services will only increase when the quality of services increases, Tung maintained. Running repair centers in places where labor costs are high may increase the operation cost of a company, but the high value from shortening the repair time will increase customer satisfaction and their willingness to pay more for the services.The turning pointJapan enjoyed years of post-war prosperity until 1985 when the Plaza Accord was signed, stalling its economic growth since. Tung said the kind of global economic conflicts that Japan fell prey to is not unique, the latest case being the escalating US-China trade war.The US-China trade row is definitely presenting challenges to the world, but Tung thinks every generation has its own challenges and opportunities. The oil crisis in the 1970s actually prompted the four Asian Tigers to successfully transform their economy. Tung added that it may still take some time before Taiwan can successfully transform its economy.TCA chairman TH TungPhoto: Michael Lee, Digitimes, May 2019

As Gigabyte Technology's premium gaming brand, Aorus has come to its fifth year of operation in 2019. Continuing its multi-product lineup strategy, Aorus is offering its latest gaming monitor series for 2019 featuring exclusive tactical advantages in games and a patented Active Noise Cancelling (ANC) technology to significantly improve users' experience in communication.The gaming market is expanding every year with growing numbers of gamers joining. Aorus also sees the business opportunity and has been keen on participating in the communities, aiming to strengthen its brand recognition. To understand the strategies Aorus has adopted for the niche sector, Digitimes talked to Eddie Lin Gigabyte's executive vice president of Aorus Brand Marketing, about the gaming market's current status.Q: What is Aorus ' view on the gaming market in 2019?A: During our annual review last year, research reports and feedbacks from our social media groups and gamer communities all showed one prominent trend in the gaming market: it is gradually turning into an all-around entertainment phenomenon.Many game developers have started partnering with streamers and video content creators such as Youtubers, looking to attract the attention of a new gamer group that we called the popcorn gamers: Watching someone playing games has already become a new way of entertainment similar to watching traditional TV programs.The popcorn gamer group has already been included as part of the gaming market by many research firms studying the market.According to a research report, the worldwide gaming market has a value of US$134.9 million in 2018 and the value has been picking up by around 10% almost every year for the past several years. And it increased by about that rate in 2018. The major driver that supports the gaming market's double-digit value growth is this phenomenon that turns the sector into a new entertainment ecosystem.The business opportunity of popcorn gamers also offers a new career route for e-sport players after retiring from e-sport competitions. In Asia, a couple of e-sport players have been recruited by companies to become streamers or Youtubers.Another area in the gaming market that has been rising in the past few years is the mobile game. Because of smartphones' increasing hardware performance, game designers have started bringing intense games such as Arena of Valor and PlayerUnknown's Battlegrounds (PUBG) to the mobile platform, attracting a wave of new gamers into the mobile game sector.Because of the games' friendly user interfaces and the fact that gamers only need to spend a short amount of time to complete a match, these games have been able to attract some popcorn gamers to join and play themselves, relatively expanding these games' overall player bases. Their participation also boosts demand for gaming peripherals and hardware rigs as they try to become more competitive in the games.As the number of gamers continues expanding and more diverse groups of gamers join the sector, we expect the market to stay on the growth track for the next couple of years.Q: How does Aorus introduce itself and handle branding?A: Since 2017, Aorus has been focusing on raising its brand recognition in the gaming market. Most resources have been spent on participating at worldwide major gaming events such as North America's Penny Arcade Expo (PAX), Germany's Gamescom, France's Paris Games Week, China's ChinaJoy, Russia's IgroMir, South Korea's G-Star and Brazil's Brasil Game Show (BGS).In Taiwan, we have mainly participated at Wirforce and Taipei Game Show (TGS).We now participate at an average of 10 shows at least a year and by showing our brand images via booth decorations and product innovations, Aorus is confident it will promote its brand recognition.Aorus has also been sponsoring e-sport teams that share the same passion and values with us. After one year of sponsorship activities in 2018, Aorus has slightly adjusted its strategy and instead of directly handling all the sponsorships via the headquarters, Aorus has passed down some of the work to local offices in places where the e-sport teams come from, as Aorus' local staff should have better understanding of how to promote Aorus brand products with the e-sport teams in the market.Aorus' headquarters are now primarily focusing on handling the promotions with e-sport teams that are more globally renowned. Just a couple weeks ago, one of our sponsored e-sport teams, G2 Esports, won the 2019 League of Legends Mid-season Invitational in Taiwan.Aorus has also started creating video content for promotions in social media such as Facebook and Instagram and through these sites' management tools, the company is able to get more information about where its customers come from and what kind of content its followers are interested in.Q: How does Aorus provide better gaming experience for gamers?A: We are aiming at building an ecosystem for gamers, and the gaming monitor is the final piece to fill the last gap in its PC gaming lineup.Although the Aorus brand has often given consumers the impression that its expertise mainly lies in motherboards and graphics cards, the team believes if the brand is looking to make products that meet customers' demands, a strategy of developing multiple product lines is necessary.The tactical gaming monitor is the latest product line that Aorus has come up with for the brand. Before creating the monitor, Aorus conducted a lot of market research to identify really exclusive and unique features, looking to differentiate from competitors' products, since we are looking to redefine the meaning of gaming monitor, not just a spec comparison.The unique feature of Aorus' tactical gaming monitor is its Active Noise Cancelling (ANC) functionality. By connecting a headset to the monitor, the technology can cancel out environmental noises and sounds and pass on players' undistorted voice to their teammates, giving users of the monitor an advantage over opponents in communication, while not violating any of the rules.Aorus' latest 25-inch monitor also features a 240Hz refresh rate and a specially designed setting to adjust user OSD interface, allowing the user to make adjustments to the monitor via a mouse or a keyboard. Users simply need to connect their monitors with PCs using USB for the functionality to work.In addition to the monitor, with Aorus' expertise and strong R&D capability in PC components, it has come up with the world's first Gen4 SSD memory solution, which can dramatically enhance data transmission speed to shorten users' processing time.As we have said that Aorus is looking to build an ecosystem for customers, a new service to fulfill that goal is currently underway as we are trying out the Xtreme Combo bundle to provide top-of-the-line hardware combos that satisfy customers' demanding needs.One example is the combination of Intel's Core i9 9900K processor with Aorus motherboard and liquid cooling solutions. Since the latest-gen CPU is not easy to acquire in the retail channel and there is no guarantee it will feature a clock speed over 5.1GHz, it has become an issue for some consumers that wish to obtain the top-tier hardware.It is rather difficult for consumers to purchase 50 units of the same CPU in order to filter out the one with clock speed over 5GHz; but it is an easy job for Aorus. Therefore, we like to offer the services to help consumers find specific hardware combination they are looking for.Before we ship out the product combos, our engineers will conduct a thorough inspection on the hardware to ensure our customers will receive well functioned products, minimizing the chance of hardware failure.Eddie Lin, Gigabyte's executive vice president of Aorus Brand MarketingPhoto: Joseph Tsai, Digitimes, May 2019G2 Esports won 2019 League of Legends Mid-season Invitational in TaiwanPhoto: Gigabyte

Science minister Chen Liang-gee has been making a lot of efforts grooming Taiwan's startups, a clear example being his ministry's arrangement of a large delegation to Eureka Park at CES 2019. Taiwan has also been keen to promote its own edition of startup showcase, InnoVEX. Ahead of the annual event, which takes place in Taipei from May 29 to 31 this year, Chen talked about Taiwan's plans and visions for promoting its innovations and startup teams.The 4 elementsThere are four elements supporting entrepreneurships: Capital, talent, technology and market, according to Chen. Taiwan had seen a disruption in investments in startups since the dot-com bubble burst in 2000 and the migration of manufacturing operations to China - until recent years. Now more locally-groomed or overseas-educated talent is jumping onto the startup bandwagon, with government stepping up efforts to connect them with local and overseas accelerators.Chen described the accelerators as the "table top" sitting on the "four legs" - his metaphor for the relationships between the funding programs and the four entrepreneurship elements.He said the four elements need the accelerators to integrate them. The accelerators introduce technologies and industries which can inspire startup teams' innovations and connect them to the industries. Whether it is small fledging startups or more experienced enterprises looking for new opportunities and clients - they can rely on such help to wow the market with solutions that connect well with the ecosystem and meet what the market really needs.Entrepreneurship and ICT prowessChen said Taiwan has done it differently from the US and Europe in terms of grooming its entrepreneurs. In the US, some start setting up their businesses while still in high school. In Taiwan, starting a business may be more about fulfilling parents' expectations. That is why young people in Taiwan have received little training or education that steers them towards entrepreneurships. Despite that, now there have been a lot more young people in Taiwan founding their own businesses with support from the Ministry of Science and Technology (MOST), receiving much attention and acclaims from many other countries, said Chen.He noted the strong ICT technology prowess that Taiwan has built up over the years remains the core competitiveness of the country when providing support for worldwide businesses. Taiwan has a population of only about 23 million - accounting for 0.36% of that of the global total - but it has still been able to build a strong and globally-renowned ICT supply chain that the world relies on heavily. The science minister is very confident about Taiwan's global competitiveness, enabled by talented people in diverse fields who are able use their knowledge in cross-domain applications.Exchange programsExchange programs with foreign institutions have allowed Taiwan researchers to see more of and connect with the rest of the world, such as the Stanford-Taiwan Biomedical Fellowship Program (STB) - which has entered its 10th year - and the Berkeley-Taiwan Biomedical Fellowship Program (BTB) - which has entered its second year. Chen likened these exchange scholars to "potential seeds" that can inject new energy into Taiwan when they return home.These seeds may grow into "big trees" by founding their own businesses, or become mentors of other startup teams. Chen said such interaction between different teams will enable creativity in multiple and diverse forms. He also noted that some programs have enabled one to three entrepreneurs to stay and learn in Silicon Valley for two to three months. But he said such exchange programs may be expanded to include 20 to 30 startup teams a year. These programs will let the startup teams get a quicker and clearer understanding of the resources and principles of entrepreneurships in other countries, and at the same time connect them to the innovative ideas of other communities.Hardware-software integrationTaiwan must think hard how it can integrate its hardware prowess with software in order to catapult its innovations and startup teams to higher levels in a new wave of digital transformation - an integration sought after by those embracing the Fourth Industrial Revolution and attempting to fulfill demand for Internet of Things (IoT) applications.Development of new products will have to cater to specific scenarios. The hardware-software integration must also provide multiple services and a link between those front-end services and devices. Chen cited Taiwan's precision machinery sector as an example. He said it is not the machines themselves that need to be upgraded; what is needed is that they have to come with multiple IoT sensors that connect and inspect each and every step of the procedure during the manufacturing process.He said the key to future development is not just the hardware - namely the machines, but also the software that managements the machines.In contrast to software development, hardware manufacturing and production capacity installation need much more capital investments. That's why many startups - usually short of funding - choose to focus on software development. Chen suggested the idea of "hardware accelerator." He said hardware alone may not create too much value, but if software development is based on extension from hardware, then the results would be more competitive.Attracting foreign startup teams and accelerators to TaiwanChen said the Taiwan Tech Arena (TTA) plans to incubate 100 startups a year, with half of them to be foreign teams. This is meant to let local teams come into more contact with international counterparts, investors and experiences.As to how Taiwan can attract foreign startups to come here instead of Silicon Valley or Europe, Chen said the key is let them have industry links and opportunities that they may not get in other countries. Their businesses will also be getting support from relevant government projects. That is to say, according to Chen, stationing in Taiwan will add to their competitiveness, which will naturally attract and keep them here.The minister said introducing foreign accelerators into Taiwan will also be important. But he said running an accelerator needs a lot of investments in capital, time and human resources. The government offers a lot of help to diversify business risks and to build up ecosystems. Taiwan will also set up locations and connections in other countries in a bid to bring foreign accelerators to Taiwan.Taiwan may be a small country with a small market, but Chen pointed out that Singapore is much smaller, and yet has been very active in the startup sector. He thinks Taiwan can work as a partner for startups from Singapore and other countries, facilitating the development of Taiwan's ICT applications and forming a more complete ecosystems enabled by international links and better technologies. He said France is also stepping up efforts grooming its startups, and Taiwan may send its startup teams to France, Israel, Boston, Singapore, and San Diego - places and countries that are known for their startup developments - for short-term exchange. Chen thinks such exchanges can inspire Taiwan startups' innovations.The 'national team' of startupsIn order to let the world see Taiwan's innovations, MOST set up a pavilion at VivaTech in France. The MOST-led delegation of 40 startup teams to Eureka Park at CES 2019 was also a huge success. It means that startups in Taiwan no longer need to fight alone; they will receive support from the government, which is keen to promote the nation's startup scene as a whole.Chen said Taiwan is well-known for its ICT manufacturing capabilities, but it is now time to shape a distinct image in the startup sector. He said it may be more efficient to work as a "national team," building a new image of Taiwan as a whole to attract investors and create opportunities for its startups.Cross-department effortsMOST focuses its resources on advancing the country's technology, which means it plays a leading role in helping other government units and academic researchers try out their ideas. For example, in 2017 MOST worked with the Council of Agriculture to develop smart agriculture. MOST integrate all necessary technologies and build up a agricultural park whose management the COA later took over. Chen said that's the role his ministry has been playing.MOST has also been working closely with academic researchers. The risk of failure is high for academic research teams to build up their startup businesses. But more investors now accept that only a minor few could grow into "big trees."AI and automationChen identifies three major directions for Taiwan's AI development in the next five to 10 years: voice database; information security; self-driving cars; and digital medical care.Chen noted that voice is still the fastest and most intuitive way of communication between people, and therefore AI-enabled technology for dialogue will be very important. MOST and various other institutions, such as Public Television Service (PTS) and National Education Radio, have been working together to build up a voice database.A total of almost 2,000 hours of Chinese voice data has been collected, with plans to expand to a database of 5,000 hours - presenting a significant collection of various languages and dialects that are used in Taiwan, Chen said. As for use of the database, Chen said big ICT firms may choose a relevant field where they can make use of the voice data and incorporate it into their chips. With the local database, Taiwan firms would not need to get licenses from Google or other international IT firms when putting their voice technologies into practice, Chen said.Many businesses have been keen on adopting new technologies to increase their values, solve problems, and cut costs. Chen noted that a lot of the conventional industrial sectors are introducing AI, big data analytics and predictive maintenance to enable their manufacturing. He thinks AI applications will see explosive growths in the next five to 10 years, particularly in the form smart manufacturing, such as using IoT technology, cloud-based control and robots. The smart medical care may grow more slowly because the laws will be stricter in order to protect human lives.AI chip development is key to Taiwan's future IT industry. The age of the Internet is one where the winner takes all. But the AI age of the future needs domain-focused applications that integrate software and hardware. And this is exactly where Taiwan stands a chance of giving birth to its own unicorn businesses. He cited a few examples where services are built on hardware: electric scooter vendor Gogoro; AI application provider Appier; and AR/VR-based shopping platform iStaging.Ambition: 3,000 startups a yearChen's ambition is to let Taiwan give birth to 300 new startups every year. Such a massive scene would create tremendous momentum for interaction and exchange of resources, technologies, talent and capital.Chen said he began promoting startups in 2007 when he was still at National Taiwan University, and since then he has seen a lot of changes to people's mentality - changes that are positive for entrepreneurships. Back then people were afraid of failures, but now more investors and enterprises accept the fact that it takes time for startups to grow. They also accept the idea that it is worth taking the chances as long as a certain proportion of the startups will succeed.Science minister Chen Liang-geePhoto: Michael Lee, Digitimes, May 2019