Taiwan ranked 13th among 140 economies and fourth in the Asia-Pacific in the latest Global Competitiveness Report published Oct. 16 by Geneva-based World Economic Forum.
 
Improving by 0.1 points for a total score of 79.3, Taiwan finished ahead of regional neighbors South Korea, 15th; Malaysia, 25th; and China, 28th, but behind Singapore, second; Japan, 5th; and Hong Kong, 7th. The U.S. topped the survey, with Germany in third.
 
Among the 12 categories used to assess competitiveness, Taiwan earned full marks in macroeconomic stability and ranked seventh globally for financial system. The nation was also described in the report as a “super innovator” as one of four economies, alongside Germany, Switzerland and the U.S., to receive more than 80 in innovation capability.
 
Responding to the report, the Cabinet-level National Development Council said that Taiwan’s strong performance is the result of wide-ranging regulatory efforts to build an environment conducive to financial sector development and foreign direct investment.
 
According to the NDC, recognition for innovation capability also underscores the impact of the government’s five-plus-two industrial innovation initiative. A key plank in President Tsai Ing-wen’s national development strategy, the economic revitalization program targets the high-growth sectors of biotech and pharmaceuticals, green energy, national defense, smart machinery and Internet of Things, as well as two core concepts: the circular economy and a new paradigm for agriculture.
 
To ensure the nation’s long-term competitiveness, the NDC said that going forward the government is committed to fostering a vibrant startup ecosystem, promoting the digital economy, strengthening the education sector and revising customs and taxation regulations.
 
The 2018 edition of the WEF report introduced a new scoring system evaluating countries across 98 indicators in the dozen categories. In addition to financial stability, innovation capability and macroeconomic stability, the main classifications include business dynamism, health, information and communications technology adoption, infrastructure, institutions, labor market, market size, product market and skills. (KWS-E)