A Study On The Industrial Cooperation Space Of Taiwan In East Asia: From The Perspective Of Product Space Theory

"Flying Geese Paradigm" had once brought close economic relation to East Asian countries,which deepened the industrial cooperation of Taiwan and East Asian economies.However,after entering "Post Flying Geese Paradigm" period,the economic environment in East Asia changed,especially for Japan who has lost its position of leading goose.The trend of Taiwan and South Korea's catching up with Japan intensified.The industrial competition among the three becomes increasingly fierce.Meanwhile,Cross-strait industrial complementarity is gradually weakening and the competitive trend has appeared.All of these changed the developing mode for East Asia economy,as well as the role Taiwan played.Under this background,it is of theoretical and practical significance to deeply analyze the cooperation space between Taiwan and East Asian economies,especially between Taiwan and Japan,South Korea and mainland China.This paper emphasizes its researches on the followings:(1)Basing on product space theory and combining with theories of industrial upgrade and industrial transfer,this paper puts forward a new proposition of how to achieve industry optimization and upgrade,and constructs industrial cooperation space model in "Unilateral guidance" and "Bilateral promotion" cooperation modes.(2)To analyze the features of East Asian industrial development and evolution in"Post Flying Geese Paradigm" period,as well as the role Taiwan plays.By appling product space theory,and to verify the issue of industrial optimization and upgrade path based on the features of East Asian industrial development.At the beginning of breaking "Flying Geese Paradigm",there was still ladder-type property in East Asia industrial development.As Post Flying Geese Paradigm advancing,the ladder-type property gradually weakened,the catching-up trend of latecomer economic entities has obviously grown,the industrial development in Taiwan is in the dilemma of "Upper pressure,Lower squeeze,Parallel transcendence" in East Asia.(3)To analyze the present space structure characteristics of low,middle and high technical product in Taiwan,and discuss Taiwan's industrial developing characteristics from the perspective of the existing product capabilities and future potentials.Taiwan's export potential was embodied in land vehicles,engineering products,electronic and electrical products and other high-tech products,and it has more prominent export competitiveness in processing products,electronic and electrical products,textile and clothing products.Taiwan's export potential has failed growing into product competitiveness.(4)To explore Taiwan's industrial cooperation space in East Asia under "unilateral guidance" cooperation mode,and analyze the relation between "Westward Expansion"and "Southward Advancement" in Taiwan's industrial development.In East Asia,the most prominent countries and areas in Taiwan and East Asian Economies are mainland China,Japan and Thailand,among which Japan plays an important role in leading industry upgrade of Taiwan,while the mainland China has considerable space to undertake Taiwan's industry transfer.At the same time,based on the East Asian industrial cooperation,there is a much bigger chance for Taiwan electrical machinery and parts industrial upgrade,as well as a much bigger chance for leather,leather or synthetic leather products,plastic products to achieve industrial transfer.The"Southward Advancement" of Taiwan's industrial development has substitution effect on its "Westward Expansion" in some degree,however,Taiwan authorities want to replace "Westward Expansion" with "Southward Advancement",which doesn't meet the market demands of Taiwan's industrial development.(5)To analyze the industrial cooperation space between Taiwan and Japan,South Korea and mainland China separately under "bilateral promotion" cooperation mode.With "bilateral promotion" cooperation mode,the available cooperation between Taiwan and Japan,South Korea and mainland China lies on medium technology products.At the same time,Taiwan-Japan industrial cooperation space grows significant at Japan's promoting Taiwan industrial upgrade.Taiwan-South Korea industrial cooperation grows significant at together enhancing their industrial upgrade.Although mainland China has showed some possibility of driving Taiwan's industrial upgrade,the possibility mainly occurs in the fields with significantly lower product technology added value,while the fields Taiwan could poromote mainland China's industrial upgrade are of higher product technology added value.Taiwan's industrial cooperation space in East Asian shows the cooperation potential between Taiwan and East Asian economies.However,the potential of industrial cooperation is the basis and precondition of carrying out industrial cooperation.It if necessary for the authorities to provide policy coordination and promotion to achieve industrial cooperation.In view of the current situation of Taiwan's foreign economic and trade,as well as the policy orientation of Taiwan authorities,the prospect for Taiwan's industrial cooperation in East Asia is not optimistic,and it will face many severe challenges.