Investor Presentaiton

Economic Relationship To China Illustrative Roles for Taiwan Role in the Value Chain • R&D and Design - - For the foreseeable future, Taiwan should offer a better R&D infrastructure and more conducive environment for innovation than China Taiwan can play this role combined with manufacturing activities located on the mainland and provide a competitive advantage to the region Sophisticated Services - Taiwan can develop its professional services for China's export industries Complementary Fields of Specialization • Education and Training - - Taiwan can improve its management education capabilities to educate the business leaders of the region Taiwan can build on its science and technology base to become the center of science education in the region • Media/Entertainment Taiwan's more liberal media environment gives it the potential to become a media/entertainment/publishing-hub for the region CAON Taiwan Presentation 07-31-01 CK 99 65 Copyright © 2001 Professor Michael E. Porter

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