2005-04-18

TAIWAN RELAXES PROCEDURES FOR GOVERNMENT

Taiwan’s Legislative Yuan on 24 December 2004, at the suggestion of Taiwan’s National Science Council, revised the Fundamental Science and Technology Act. The revised Act will now provide for subsidies for scientific and technological research and development conducted by government research institutions, public schools, state-run enterprises and various foundations. Regardless of the amount of the subsidy to be provided, the provisions of the Government Procurement Law will not be applicable unless otherwise stipulated by treaties or agreements concluded by foreign governments with Taiwan.

According to the relevant government statistics, subsidies paid to public schools and other institutions for research and development account for approximately 40% of the government’s total budget for technology. As such, these subsidies will be the primary engine pushing technological research and development in Taiwan. The Act allows the government substantial flexibility in determining how to commission work in research and development. This added flexibility is expected to enhance research and development efforts in Taiwan’s science and technology sectors.

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