Optimal Practical Model Of Innovation Of Public Enterprises

Since 1953, Taiwan has enacted the "Transformation of State Owned Enterprises into Private Enterprises Governing Act" for 54 years to promote the policy of privatization of public enterprises. During the practicing over half a century, a total of 17 public enterprises have been closed, and more than 50 public enterprises have been privatized or merged. By May 2007, there are only 13 public enterprises which have not yet been privatized. Accordingly, Taiwan is well-experienced in practicing privatization historically. Furthermore, according to the preliminary study on the relevant literature by the researcher, there was no well-founded research probing into the optimal practical model. The researcher is serving in a public enterprise that is going to be privatized and, therefore, is more experienced about innovation of public enterprises. Given the above-mentioned reasons, this study takes the example of Taiwan's experience in practicing privatization of public enterprises as the outline of optimal model in public enterprises innovation, and then verifies it by the example of ChinaSteel to reach an in-depth analysis. It will hopefully provide various countries a reference to promote the innovation of public enterprises based on the development and experience model optimized in Taiwan.In simple words, this study is conducted primarily for the following three purposes: (1) to verify Taiwan's experience in practicing innovation of public enterprises; (2) to create the optimal practical model for innovation of public enterprises; (3) to prove the optimal practical model for innovation of public enterprises. To achieve the aforementioned purposes, this study analyzes the important experience reflected by history, practical strategies, practical problems and results of the innovation of public enterprises in Taiwan through analysis and research of literature and files, hence creating the "optimal practical model for innovation of public enterprises" . Meanwhile, this study sets ChinaSteel's case as an example and further verifies the "optimal practical model for innovation of public enterprises" through analysis of archive data, in-depth interview and opinions of 15 experts from AHP questionnaires.The study has concluded the following after two and half years: (1) According to the analysis of the history, strategies, problems and results of the innovation of public enterprises in Taiwan, a total of 32 examples are worthwhile learning and a total of 25 cases are worthwhile using for reference; (2) the optimal model for innovation of public enterprises may work out if it should cover the stages prior to and after privatization; (3) the optimal model for innovation of public enterprises may be well-founded if it should control the objectives, strategies and alternate measures ; (4) the optimal model for innovation of public enterprises suggests proceeding with the innovation in a dynamic and diversified manner subject to the conditions of the public enterprises per se and demand in the market; (5) the optimal model for innovation of public enterprises suggests that maintenance of the public interest and upgrading of economic benefits should be the objective, whether the enterprises are maintained, or privatized in part or in whole; (6) the optimal model for innovation of public enterprises suggests that corporate governance should be completed prior to privatization and employees' interest and right shall be ensured through legislation; (7) the optimal practical model for innovation of public enterprises suggests that the privatization should pursue the release of shares for the maximum benefit and avoid syndication; (8) the optimal practical model for innovation of public enterprises suggests that management of government shares and market supervisory mechanism should be the priority after privatization; (9) the optimal practical model for innovation of public enterprises proposed by the study has been proven to be feasible by means of the history of ChinaSteel's privatization and interviews with its employees; (10) the experts argue that amending enactments in time and assuring employees' rights and interests are the most important things in the optimal practical model for innovation of public enterprises. Finally, in addition to the optimal practical model chart for innovation of public enterprises proposed according to the result of the study, the relevant government authorities, public enterprises and employees of public enterprises will also be provided with concrete suggestions for reference according to the conclusion of the study.