Taipei, March 21 (CNA) President Chen Shui-bian said Monday that the government should establish an efficient incentive system to encourage technological innovations and upgrade the nation's overall competitiveness.
Chen made the remarks after presiding over a meeting of the presidential economic advisory group. "The administration should inspire industrial upgrading based on the principle of encouraging the creation of new values, " Chen said, adding that by so doing, the nation's overall competitiveness can be enhanced.
Against this backdrop, Chen said, the existing tax incentive mechanism should be subject to an overall review in order to ensure that national resources are wisely and efficiently used. "Academic institutes, government-funded research bodies and the private sector should pool their resources in technological research and development (R&D) to enhance operational efficiency," Chen said.
In response to criticism that the government has offered too many tax incentives for high-tech industries, Chen said the government may have to set a timeframe or conditions for ending R&D tax privileges, commonly known as "sunset clauses, " to prevent abuse of the relevant tax incentives.
Chen further said all new science-based industrial parks now under construction should give priority to accommodating companies devoted to production of high-end or high value-added products and services. "Invention and innovation will be core values for our technological development, " Chen said, adding that he has directed the Cabinet to come up with a comprehensive report on relaxation of restrictions on high-tech development and investment.
The report will be unveiled at the presidential economic advisory group's next meeting, Chen said.