A Strategy for Taiwan

I just came back from Taiwan. While in Taipei I met with the heads of large companies and key figures in the Taiwan government who was confronting serious pressure over some political scandals. At some of those meetings I was asked to give some ideas for Taiwan´s development. This is my view. Taiwan is being squeezed by China´s low labor costs. Many of its companies are moving production to China leaving only the engineering to be done in Taiwan. In a way Taiwan is doing to China what the USA used to do to Taiwan design at home, build elsewhere. But in my view that is not enough. I think that at some point Taiwan will have to do what Japan and Korea did and acquire some key companies in the USA in the areas of web services and gadget design. Instead of just focusing on cutting production costs Taiwan should also focus in getting more access to extremely good creative technology, gadget design and services talent from the United States and Europe.