Islands of innovation: A Comparative Reflection on Industrial Policy, Access to Talent, and Technology Sovereignty

Finland and Taiwan, though geographically distant, share the challenges of small, open economies reliant on global trade, talent, and energy. Taiwan’s targeted investments in critical technologies like semiconductors and AI, its institutional clarity, and agile governance offer a useful mirror for Finland’s broader but less output-focused innovation strategy. Facing similar demographic shifts, Taiwan has also moved decisively to attract international talent and reconfigure its higher education system, an area where Finland lags in reform.

This brief aims to offer discussion points by sharing key lessons from Taiwan across six domains: critical technologies, industrial policy, talent, energy, regional renewal, and the role of research organizations. Kaohsiung’s industrial transformation, ITRI’s mission-driven role, and Taiwan’s approach to aligning tech ambition with systemic readiness provide practical insights for Finnish policymakers and innovation leaders.

In short, Taiwan demonstrates how strategic focus, systemic coordination, and measurable outcomes can accelerate innovation capacity building. For Finland, adopting a more output-focused, resilient, and ecosystem-driven approach may be essential to sustaining competitiveness in a volatile global landscape.