Many of Taiwan's highly export-oriented enterprises are small and medium-sized, and many are in a relatively good position to cope with, even to take advantage of, globalisation. Because they generally do not have strong in-house R&D, and often do not have their own global marketing channels and internationally recognised brand names, however, many also see globalisation as a serious threat.

To cope with the challenges of globalisation, Taiwanese firms are adopting various strategies to strengthen their technological capabilities; these strategies include joint R&D efforts in Taiwan, and technology alliances with foreign partners. Faced with challenges at home — including labour shortages, major appreciation of the NT dollar and an environmental protection movement — as well as the pressures of globalisation, many firms are also striving to internationalise their operations, both in Asia and outside the region (especially in North America, more recently in Europe). Direct overseas ...