The influence of input factors on new leading product development projects in Taiwan

Abstract In order to adjust Taiwan's industrial structure and raise technical levels, Taiwan's government has begun to use New Leading Product Development Projects (hereafter referred to as NLPDPs) to assist manufacturer research and develop hi-tech products since 1991. According to reports of Industrial Development Bureau (IDB) (1999), overall investment in NLPDPs from 1991 to 2000 was in excess of NT$40 billion. The purpose of this study is to investigate the variables influencing new products, which were developed in NLPDPs and have been introduced to market and sold successfully, a total of 214 projects were used to study using logistics regression. The result indicated that self-provided funds, firm size, number of R&D personnel, and the ratio of master's degree holders or higher were statistically significant. The impact of government subsidies (interest-free loans and grants) did not have a direct effect on large-sized enterprises, but had a direct effect on small and medium enterprises (SMEs). Besides, the more R&D experiences in NLPDPs, the more positive impacts were generated on the successful market introduction and sales of new products in SMEs, metal and mechanics industries, consumer goods, and chemical industries. Regarding the type of industries, government subsidies did not have an obvious effect on information and electronics industries, but was very helpful to the metal and mechanics industries, consumer goods, and chemical industries, which are mainly focused on OEM operations.

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