Opportunities for Taiwan ICT Solutions in the Balkans

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1 Opportunities for Taiwan ICT Solutions in the Balkans Meili Hsiao Director General, International Division, Institute for Information Industry 06/23/2016 Institute for Information Industry

2 @2016 Institute for Information 2 Industry Outline 1 The Balkans at a Glance ICT Index of The Balkans Taiwan s ICT Power Possible Areas of Cooperation 5 Conclusion

3 1 The Balkans at a Glance The Balkan Peninsula by the Danube Sava Soča border. Political communities that are usually included in the Balkans. Political communities that are usually not included in the Balkans. Location Highest elevation Highest point Southeast Europe 2,925 m (9,596 ft) Musala (Bulgaria) The abstract term "The Balkans", is defined by the political borders of the states comprising it. The term is used to describe areas beyond the Balkan Peninsula, or inversely. It is generally accepted as part of Europe and referred to as Southeast Europe nowadays. The Balkan Peninsula is a region composed of 550,000 Square Km, 55 Million Population with diverse political, culture, religions and industries. Source: The Balkan states according to Encyclopæ dia 2016 Institute for Information Industry

4 A market of million people Many kinds of HUBs in the region A region to reach 742 million Europeans 6 EU members that can be a bridge to EU Also an important beachhead to 2016 Institute for Information Industry

5 Population 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5, Institute for Information Industry

6 GDP and GDP Growth Rate GDP v.s.gdp Growth 250 Greece 200 Romania Ukraine Hungary Croatia Serbia Bulgaria 50 Slovenia Bosnia and Macedonia HerzegoviAlbania na Moldova 0 Montenegro Institute for Information Industry

7 2 ICT Index of The Balkans 2016 Institute for Information Industry

8 Stage of Development WEF Country Taiwan Albania Bulgaria Croatia Greece Hungary Macedonia, FYR Moldova Montenegro Romania Serbia Slovenia Ukraine 1 Factor driven Stage of Development 1-2 Transition 2 Efficiency driven 2-3 Transition 3 Innovation driven Source: 8 The Global Competitiveness Report , WEF

9 GNI per capita, NRI and Population Networked Readiness Index (NRI) Moldova US$2550 NRI= T. Macedonia, FYR US$5070 NRI= T. Ukraine US$3560 NRI=4.008 Serbia 45,363T. Albania US$4460 NRI= ,894T US$5820 NRI= T. Montenegro US$7240 NRI= T Romania US$9370 NRI= ,911 T. Bulgaria US$7420 NRI= ,226T Croatia US$13020 NRI= T Hungary US$13470 NRI= (T Greece US$ NRI= ,958 T ,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 22, Gross National Income (GNI per capita (2014)) Slovenia US$31,720* NRI= T Source: The Global IT Report 2015, WEF *: GDP per capita for Institute for Information Industry

10 3 Taiwan s ICT Power 2016 Institute for Information Industry

11 Taiwan s Global Competitiveness 16% 14% 12% 10% 8% 6% 4% ICT Contribution to Taiwan GDP 2% 0% Source: The Global Competitiveness Report , WEF Taiwan is in the innovation driven stage. However, we still strive for 11 breakthrough innovation and industry institute for Information Industry

12 IMD World Competitiveness Rank Singapore Hong Kong US US US Hong Kong, US 2 Hong Kong US Switzerland Switzerland Hong Kong 3 US Singapore Switzerland Hong Kong Singapore Singapore 4 Switzerland Sweden Singapore Sweden Hong Kong Switzerland 5 Australia Switzerland Sweden Singapore Sweden Canada 6 Sweden Taiwan Canada Norway Germany Luxembourg 7 Canada Canada Taiwan Canada Canada Norway 8 Taiwan Qatar Norway UAE UAE Denmark 9 Norway Australia Germany Germany Denmark Sweden 10 Malaysia Germany Qatar Qatar Norway Germany 11 Luxembourg Luxembourg Netherlands Taiwan Luxembourg Taiwan 12 Netherlands Denmark Luxembourg Denmark Malaysia UAE 13 Denmark Norway Denmark Luxembourg Taiwan Qatar 14 Australia Netherlands Malaysia Netherlands Netherlands Malaysia 15 Qatar Finland Australia Malaysia Ireland Netherlands Korea Japan Institute for Information Industry

13 e-lifestyle in Taiwan Easy Card makes lives easier Citizen Digital Certificate for e- filing income tax Gov. service(i-bone ) Buy Taiwan High-speed Rail Tickets or booking on Internet e-service everywhere e-lifestyle Online shopping Pay by credit cards or Web ATM Make an appointment with NHI Card Institute for Information Industry

14 @2016 Institute for Information Industry Government Provides its Services Efficiency ICT Infrastructure Online Services Offer 4,000 online services 64.7% tax payers filed Income Tax online 97.8% business entities pay Sales Tax online Integration and Interconnectivity Interactive Services e-governance Ubiquitous Services Web 2.0 Services custom, proactive, basic and continuous services Device (Portable devices) Network (wireless broadband) Application (Web 2.0) Implement GPKI and information security services to ensure a secure environment for gov t transactions Ranked in top 5 from 2001~2008 (Top 1 for 3 yrs) in Global e-gov t Study by Brown University Source: RDEC Stage 1 Network deployment Mid-term e-gov. plan ( ) Stage 2 E-go Plan ( ) Stage 2.5 e-taiwan E-go ( ) Stage 3 Superior e-gov. ( ) Stage 4 Intelligent Government ( ) Performance

15 @ 2016 Institute for Information Industry Taiwan Open Data No.#1 in the World in 2015 Taiwan s Open Data Index was ranked No.1(out of 122 nations/regions) by Open Knowledge Foundation in (Taiwan was ranked No. 11 in 2014) Prime Minister Simon Chang spoke in the Asia Pacific Open Data Summit The measurements include: 1. Government Budget, Government Spending 2. Election Results 3. Company Registration 4. National Map 5. National Statistics 6. Legislation 7. Postcodes/zip codes 8. Location datasets 9. Pollutant Emissions 10. Procurement tenders 11. Weather forecast 12. Water Quality 13. Land Ownership 14. Health performance Source: Open Knowledge Foundation, National Development Council, 2015

16 @ 2016 Institute for Information Industry Open Government 12,200 Data Promote Sets to Open Create Data Value Government Open Data is a major infrastructure of an information society. The objective of Open Data is better governance, service innovation and driving digital economy. Data Value 12,200 data sets have been opened for value added applications such as ETC, weather rain, etc. Source: National Development Council, 2015

17 Smart City 7cities out of major 20 cities in Taiwan are recognized as International Smart Cities by ICF. Taichung(2013) Taipei(2006) Hsinchu(2014) New Taipei (2014) Taichung (2013,2012) Taoyuan(2013) Taipei(2006,2004) Source:ICF ICF 5 indicators : Broadband connectivity, Knowledge workforce, Innovation, Digital inclusion, Marketing and Institute for Information Industry

18 Global Market of 10 Selected Solution Sectors Smart Transportation Smart Living Smart Energy Turnkey solutions By 2020, Electronic estimated Toll Toll global market Collection Collection value to reach US$17.5 billion Smart Health By 2020, Smart estimated global market value to reach US$48.1 billion Health LED Lighting By 2020, LED estimated global market value to reach US$53.3 billion Lighting Petrochemical Plants By 2020, estimated global market value to reach US$11.7 billion By 2020, estimated global Green Green market value of Transport. public bicycles Transport. to reach US$5.2 billion Smart Campus By 2020, estimated global market value to reach US$4.8 billion Smart Campus Cloud Systems By 2020, estimated global market value to reach US$56.7 billion Solar Power Plants Solar Power Plants By 2020, estimated global market value to reach US$100 billion Smart Logistics By 2020, estimated global market value to reach US$11.1 billion e- Govt. By 2020, estimated e- global market Govt. value to reach US$9.8 billion

19 @ 2016 Institute for Information Industry 4 Possible Areas of Cooperation

20 GNI per capita, NRI and Population NRI Moldova US$2550 NRI= T. Macedonia, FYR US$5070 NRI= T. Ukraine US$3560 NRI=4.008 Serbia 45,363T. US$5820 NRI= T. Montenegro US$7240 NRI= T Infrastructure Bulgaria US$7420 NRI= ,226T Romania US$9370 NRI= ,911 T. Croatia US$13020 NRI= T Hungary US$13470 NRI= (T Slovenia US$31,720* NRI= T Innovative Solutions Co-Development Smart Applications Greece US$ NRI= ,958 T. 3.8 Albania US$4460 NRI= ,894T Source: The Global IT Report 2015, WEF *: GDP per capita for Slovenia ,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 22, Gross National Income (GNI per capita Institute for Information Industry

21 Example 1 - Bulgaria GNI per capita (2014)US$7,420 Upper middle income Land: 110,994 sq. km Source: Worldbank 21

22 Possible Cooperation Opportunity- Bulgaria Industries at a glance Balanced development in some major ICT development Indices (NRI, ICT development by ITU etc) Agriculture is a major sector (59.8%of the land is agriculture, 72% agri. Products export), emphasis on food safety and quality Developing renewable energy, including wind and solar Is the rose oil capital of the world High tech industries, with HP, Microsoft, SAP have setup RD centers at Bulgaria ICT companies High quality IT human resources with lower salary levels NB and smartphones are popular The government regards IT as one of the strategic industries. With a 3B USD IT market Healthy food, medical equipment, & tourism Cooperation Opportunities High potential for cyber security Smart healthcare Smart agriculture (IOT based) Food safety tracking Energy management Better utilization of high quality manpower to develop new products for the region ICT cooperation to leverage EU and EBRD funding Institute for Information Industry

23 Example 2 - Romania GNI per capita (2014) US$9,520 Upper middle income Land: 238,891 sq.km Institute for Information Industry

24 Possible Cooperation Opportunity- Romania Industries at a glance Ranked 10th WW in international bandwidth Some ICT companies and EC companies service scopes cover some neighboring countries Imports most PC related products; smartphones recorded double digit growth rate in recent years The retail industry modernization is on going. 50% of retails are modernized EU provides 383 M Euros subsidy for IT industries and equipment from 2007 to M Euros to improve government s IT equipment and services. In the next few years, both private and government sectors continuously demand IT, cybersecurity, and computers. Hence the market is enlarging. Gov. schools, research institutes demand EU to support IT projects Cooperation Opportunities Smart transportation in AFC, ETC and others. Smart healthcare, including wearable devices Smart school Energy management ICT cooperation to leverage EU and EBRD funding III has had UTI Group as our partner in Romania. Institute for Information Industry

25 25 Example 3 - Hungary Land: 93,030sq.Km Population 9, (2014) GDP $ billion (2014) GDP growth 3.7% (2014) Inflation -0.1% (2015) GNI per capita (2014)US$13,470 Upper middle income

26 Possible Cooperation Opportunity- Hungary Industries at a glance OEM hub for electronics and automobiles Showing good performance in innovation Cluster effect in electronics industry. Many multi-national electronics manufacturing companies set up factories and RD centers 6 out of 10 biggest electronic OEM companies set up their factories in Hungary, including FOXCOM, D-Link, Asus etc. Owns high level IT human resources; 20,000+ IT companies 30% electronics market share in the region. Capable of providing high CP value ICT solutions such as parking fee collection, license plate recognition, GPS. Developing green energy and the Gov. will encourage households to install solar panels. Cooperation Opportunities Manufacturing 4.0 Machinery, machine tools Smart transportation in AFC, ETC and others LED Public lighting Intelligent meters Smart tourism Energy management ICT cooperation to leverage Taiwanese companies, EU and EBRD funding Institute for Information Industry

27 5 Conclusion -Key Success Factors Trust Fit Solution KSF Professional Team Local Partner Budget 2016 Institute for Information Industry

28 Project Financing Cooperation can be Further Discussed Ideas: Using Taiwanese funding framework, with the assistance of EBRD in the form of A/B loans or other kinds of arrangements to finance ICT, green energy, ESCO, and infrastructure projects in the cities of Bulgaria and other Balkan countries. Objectives Better service quality and improved environmental standards due to significantly reduced energy consumption, CO2 emissions and operation cost s in participating cities. Each project will have planning and implementation 2016 Institute for Information Industry

29 @2016 Institute for Information Industry 5 III can be a platform that facilitates ICT cooperation between The Balkans and Taiwan to create a win-win future! We look forward to getting your feedback!

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