Industrial Upgrading Through Innovation of Technological and Vocational Education

With the advent of the knowledge-based economy, the world today is undergoing a learning revolution. Technological and vocational education, set to serve industries, plays not only a pioneering role in the process of industrial development but also a pivotal role in the enhancement of a nation’s competitiveness. In the new economic age, technological and vocational education has to foster constant innovation and continue helping upgrade industries in order to maintain a sustainable growth. This study starts with a review of both the global and domestic trends in the job market, goes through an industrial estimate and evaluation of the demand for manpower and the cultivation of talents, and makes suggestions in the form of innovation strategies for technological and vocational education in response to industrial upgrading.

Industrial development is closely related to the development of technological and vocational education. As there is a need for industrial elevation, so is there one for talent upgrading. In the new globalized economy where industries are undergoing a restructuring, technological and vocational education has to come up with a new role to play with regard to innovation in order to perpetuate its role in serving as an engine of economic growth.

The world today is going through an economic revolution. It is a new economic system with knowledge workers and universal information and communication technology and new type chains of business. It is called the “New Economy” or “Knowledge-based Economy.” An OECD (Organization of Economic Cooperation and Development) survey defines the "knowledge economy" as high technology industries, such as computing and telecommunications, and those sectors involving a highly skilled workforce such as finance and education. This knowledge economy is to facilitate the production in the part of the world where the cost is the lowest and sell in the part of the world where profits are the highest by using the scientific and technical revolution almost exclusively for this purpose and gearing education to that purpose(Eh Din, 2005).

The definition of the knowledge-based economy comes from a UK government white paper: “A knowledge-driven economy is one in which the generation and the exploitation of knowledge has come to play the predominant part in the creation of wealth. It is not simply about pushing back the frontiers of knowledge; it is also about the more effective use and exploitation of all types of knowledge in all manner of economic activity.”（David Humphreys, 2001）The long-term trend towards a knowledge-based economy continues. Science, technology and innovation have become key factors contributing to economic growth in both advanced and developing economies(OECD,2005).

With the utilization of modern telecommunication and computer technologies, work is increasingly performed through the manipulation of symbols in computer systems rather than of material objects (‘textualization of work’). The consequent deterritorialization and disembodiment of both production and services have enabled the interlinking of diverse economic entities, workers and consumers located in geographically distant sites. Geographically dispersed workers and managers may be linked together through telecommunications and computer systems to form complex chains and networks engaged in producing knowledge, supporting information technology systems, or providing remote services(Carol Upadhya, 2005).

This is mainly driven by the use of information and communication technology (ICT). In the knowledge economy, information circulates at the international level through trade in goods and services, direct investment and technology flows, and the movement of people. Firms use ICTs to organize transnational networks in response to international competition and the increasing need for strategic interaction (OECD,2005).

New technologies and their implementation in productive activities are changing the economic structure and contributing to productivity increases in OECD economies. Some examples of recent trends include: 1) new channels for knowledge generation, diffusion, protection and application; 2) new interactions owing to the increasing importance of networks, linkages, partnerships and mobility; and 3) new global actors from non-OECD countries (OECD, 2005).

The ICT sector invests heavily in research and development (R&D). In 2002, ICT manufacturing industries accounted for more than a quarter of total business R&D expenditure in most OECD countries. Investment in ICT represented between 0.35 and 0.9 percentage point of growth in gross domestic product (GDP) over the period 1995-2003. Australia, Sweden, and the United States received the largest boost from ICT capital. In Ireland, Finland and Greece, growth in multi-factor productivity was also an important source of GDP growth(OECD, 2005).

The age of new economy means the upgrading of productivity as well as the need for innovation, a phenomenon that features potential for high economic growth and low inflation and unemployment rates (Lin Ping-chung, 2002). Main future trends affecting business include:

Decentralizing Authority: Some organizations will use formal structures such as self-directed work teams, while others may decentralize decision-making and make it less formal.

Advertising in the Internet Age: Advertisers will stop letting the specific medium constrain the message; instead, creative advertisements can hold audience attention across media.

China Moving Towards a Market-Economy: While the economies of many countries are in a slump today, China's economy continues to expand at a healthy rate in response to new economic reforms.

Regulation and Taxation：The issue of taxation and regulation is raised in many countries each year. However, as the percentage of retail sales and business on the Web increase, there are likely to be more efforts to tax and regulate the transactions.

Customer Relationship Management：Companies will develop a better understanding of how you are actually reaching customers and how to relate to them whether it is through the Internet or some traditional retailer channels.

Globalization's Effect on Doing Business：Companies can enter the international market more easily and reach out to more customers in diverse places. At the same time, companies from other countries can do the same thing. So the level of competition is likely to increase (FORVIEW, 2005).

There are two factors affecting industrial development in the new economic age: technology and innovation. According to McKenzie Consultants, the upgrading of productivity is largely attributed to innovation in competitiveness model and management. And innovation also helps create new market needs in the economic system and becomes the most important economic activity in the new economy. The age of service industries is tantamount to the post-industrial era. Its role is so important that it has replaced that of industries in several advanced countries (Lin Ping-chung, 2002). As output value of the service industries is increasing rapidly, these industries, ones with intensive knowledge in particular, will continue to play a leading role in the world’s industrial development.

As globalization has brought about some structural changes in production, process, design and marketing of the industries, Taiwan, which used to be known for its cheap labor, is facing a pressing need to transform and elevate its industries.

Regional Integration: Free trade agreements ( FTAs) and regional integration; regional economic and trade opportunities in constant flux; Taiwan’s investment and trade development impacted by international political and diplomatic obstacles.

China Factor: China’s attraction of foreign capital and Taiwan’s increasing reliance on China pose growth risks.

Emerging Countries: Opportunities and challenges included new investment and market opportunities in India, Russia, Brazil, etc.; and growing competitive pressure from South Korea, Singapore, etc.

Other Factors: Depreciation of the U.S. dollar against the New Taiwan dollar due to the worsening American fiscal and trade position; rising oil prices (Ministry of Economic Affairs, 2005a).

Taiwan cannot exclude itself from the international arena when pursuing an elevation of its industries and, at the same time, turning it into a center of innovation research. An analysis finds the following opportunities for Taiwan in facing the competition:

a. It has to use the inexpensive labor abundant in developing countries to lower its production costs.

b. It has to launch an industrial reengineering to enforce a transformation of its traditional industries and hoist added value of the industries

d. It has to adjust both production and marketing of its industries to achieve the goal of elevation and increase in added value.

In terms of creating job opportunities, Taiwan is capable of 1) developing new high-tech industries, such as semiconductor and biotech, resulting in job opportunities for advanced manpower; 2) developing local industries, such as tourism and culture, resulting in creating job opportunities for ordinary manpower, thereby alleviating unemployment among low-tech and high/medium labors; and 3) facilitating the transformation and elevation of traditional industries, such as construction, resulting in the return of unemployed workers to job markets(National Science Council, 2005).

Taiwan’s strengths in competitiveness come from its knowledge-oriented manpower. Taiwan’s strong industries can be seen in Table 1:

The Executive Yuan has adopted “Service Industry Development Guidelines and Action Plan” under the theme of “Brighten Taiwan’s Smile.” With its focus on such items as service, innovation, and employment aiming to seek a new position for Taiwan, the project is expected to gain a real 8 percent increase for the island’s knowledge-intensive service industries by 2008 (Ministry of Economic Affairs, 2005b, see Table 2).

Sources:

Institute of Industrial Technology Research Institute；

Human Resources Department, Council of Economic Planning and Development.（Cited from Ministry of Economic Affairs, 2005b, The strengths and opportunities of Taiwan’s Industries）

According to an official estimate, by 2008 Taiwan will have achieved a considerable growth in its trillion NTD industries (automobile, digital hardware, machinery and equipment), high-growth industries (semiconductor, flat panel display and communication), substantial industries (textile, electronic components, and information services), and twin star industries (digital content and biotech) (See Figure 1).

1. Relations Between Technological and Vocational Education and Industrial Development

Shortly after Taiwan’s retrocession to the Republic of China after 50 years of Japanese rule, the authorities were engaged in activities calling for stabilizing the island’s economy. In the 1950s, land reform and economic development plans were launched. An export expansion policy was adopted in the 1960s. Technology- and capital-intensive industries were the main stay of the economy in the 1970s. A strategic industrial policy was introduced in the 1980s for the development of high-tech industries in the 21st century. During the period, ten new industries and eight key industrial technologies were proposed, all of them keyed to a huge market potential, high added value, and low contamination. With financial support and management guidance, Taiwan was able to elevate its industries and adjust its functions through structural changes.

Emphasis in the 1990s was to help upgrade traditional industries and to aggressively promote the said ten new industries, including telecom, information, consumer electronics, semiconductor, automation, aerospace and high-end material (Ministry of Economic Affairs, 2005c). In the current century, Taiwan is known for such industries and technologies as machinery, electronic OEM (original equipment manufacture), and aquaculture. In 2003, high-tech industrial products represented as high as well over 60 percent of Taiwan’s entire manufacturing output in value. At the same time, Taiwan is making redoubled efforts to develop knowledge-intensive services, biotech, and nanotechnology (Ministry of Economic Affairs, 2005c).

Technological and vocational education is the engine of Taiwan’s industrial development. It has played the following roles:

After Retrocession in 1945: Maintenance of economic stability and preparations for industrial development.

During the 1950s: Symbiotic development of agriculture and industry and establishment of an Industrial Education Department in National Taiwan Normal University in support of industrial development.

During the 1960s: Promotion of economic development and establishment of industrial junior colleges.

During the 1970s: Establishment of the first technology institute was setup during the period to play a supporting role in the transformation into technology- and capital-intensive industries; a dual system placing equal emphasis on general education and vocational education was implemented; and the ratio of vocational schools to senior high schools raised to 7:3.

During the 1980s: Establishment of more junior colleges and technology institutes to cope with economic liberalization and internationalization.

During the 1990s: Elevation of junior colleges to technology institutes and of technology institutes to technology universities, with a view to developing high-tech industries; and vocational schools transformed into comprehensive high schools.

After 2000: Technological and vocational education facing a challenge of transformation as there is a need for the development of knowledge-based economy and the speedy elevation of industries; vocational high schools on the increase; and fewer technology institutes and technology universities.

a. Industrial Upgrading and Innovation of Technological and Vocational Education

Globalization has a big impact on Taiwan’s manufacturing, forcing it to be elevated and transformed to one that is competitive in a market where countries like China are catching up (Yang Chia-yen, 2002).

Innovation is the way to perpetuate an industry. It involves innovation in manufacturing process, in concept as well as in products. Innovation in manufacturing process may bring about revolutionary changes. For example, when choosing such major industries as biotech and nanotech, the government is eying their application to traditional industries and other areas, hoping to push for the elevation of traditional industries and the creation of new industries (Ho Shiu-tsuang, 2002). Therefore, we may safely say the core of economic competition is innovation in knowledge and technology.

According to the OECD, continued market pressure has resulted in an integration of technologies, thereby making products and services to be knowledge-intensive. Innovation refers to knowledge that can be applied in response to the need of the market. This is a good way to ensure a nation’s or a company’s competitiveness.

In accordance with a conclusion reached at a national technology conference held last year, the government will promote new high-tech industries to achieve: 1) convergence of biotech industries and establishment of biotech funds, 2) development of strategy-oriented and knowledge-based services, 3) better talent cultivation, and 4) transition from e-Taiwan toward m-Taiwan (NATEA, 2005).

How will technological and vocational education help promote industrial upgrading? A concept calling for “winning by not competing” from a widely discussed book titled “Blue Ocean Strategy” can be employed. In other words, uniqueness or differentiation can achieve the goal of winning without competing(Hsu Ming-ju, 2005a). Only through this approach can Taiwan avoid a cutthroat competition. As far as technological and vocational education is concerned, the following four approaches can be adopted to reconstruct the system: 1) elimination of old-fashioned ways of talent cultivation, 2) reduction of the curriculum aimed to develop “blue-color” manpower, 2) upgrading of the quality of contents with regard to high technology, and 4) adoption of new concepts, new teaching methods, and new systems.

According to the latest employment projections of the U.S. Bureau of Labor Statistics (BLS), the number of persons working or looking for work is expected to reach 162 million by 2012. The labor force is projected to show steady growth, increasing by 17 million, or 12 percent, over the 2002 level. As the baby-boom generation ages, the number of people in the labor force aged 55 to 64 is projected to grow by 51 percent, more than four times the average for all age groups. The number of labor force participants aged 65 and older is expected to grow by 43 percent. The women’s labor force participation rate continues to edge upward. The share of women in the labor force is projected to increase from 46.5 percent in 2002 to nearly 47.5 percent in 2012(Michael W. Horrigan,2005).

Industry employment growth over the 2002-12 decade is projected to be concentrated in the service-providing sectors. The professional and business services sector, which accounted for about 12 percent of industry employment in 2002, is projected to grow nearly twice as fast as the overall economy. Education and health services, transportation and warehousing, and information industries also are among the fastest growing. Among goods-producing industries, construction is projected to gain about one million jobs. Employment in manufacturing is expected to decline slightly. Eight of the 20 industries projected to add the most new jobs also are expected to be among the fastest growing. These include computer systems design and related services, investigation and security services, and community care facilities for the elderly(ibid.).See Figure 2.

Among occupational groups, the professional and related occupations group, followed by services, is expected to increase the fastest and add the most jobs. Education, training, and library occupations are projected to increase by 2.1 million jobs and healthcare practitioner and technical occupations by 1.7 million. Sixteen of the 20 fastest growing occupations are related to healthcare or computers, including medical assistants and network systems and data communications analysts. Registered nurses and teachers are expected to gain the most new jobs—more than 600,000 each. Several of the occupations projected to have high employment increases relate to education, although high growth occupations span diverse areas of interest. (Occupational Outlook Quarterly. Winter, 2003-04).

The labor participation rate, peaking at 60.9 percent in 1887, has been on the decrease due to a slow growth in the workforce. The rate stood at 57.7 percent in 2004. It is expected to rise to 59 percent by 2015. The number of the employed increases to 11,113,000 persons in 2005 from 9,786,000 registered in 2004. The average job opportunity will be up to 1.2 percent between 2005 and 2015 from 0.8 percent between 2001 and 2004. Unemployment will be 0.2 percent between 2005 and 2015.

In 2004, those aged 25-49 remained the main force in the labor market, representing 71.4 percent. They were followed by the 50-64 age group at 16.3 percent; by the 15-24 age group at 10.8 percent; and by those above 65 years of age 1.5 percent. Due to the aging population and a decrease in the number of children, a labor force of those aged 15-24 will be reduced by 1.6 percent annually while that of the 50-64 age group increased by 4.7 percent per year and 6.5 percent for the group of 65 and above. Figures for 2015 will be 8 percent for the 15-24 age group, 65.4 percent for the 25-49 age group, 24 percent for the 50-64 age group, and 2.7 percent for those 65 and above. This means the middle- and high-aged groups will become the major force in the job market by then.

The level of education of the public is increasing due to an omnipresence of senior high schools. In 2004, about 37.7 percent of those 15 years old and older had a junior high diploma or lower, while 10.3 percent were with a senior high diploma, 23.2 percent with a vocational high diploma, 13 percent with a junior college degree, and 5.8 percent with a college degree or higher. There will be a big rise in the number of college students, with its increase rate reaching an average of 6 percent between 2005 and 2015. By 2015, those with college degrees and higher will get 27.1 percent of the entire job market, followed by those with junior high education and lower (26.3 percent), while those with vocational high education, junior college diplomas and senior high education followed at 22.2 percent, 13.9 percent, and 10.6 percent, respectively.

In 2004, services took a lion’s share of 58.2 percent, followed by industry at 35.2 percent and agriculture at 6.6 percent. Of the services, manufacturing represented 27.3 percent, followed by wholesale and retail (17.6 percent) and construction (7.5 percent). The annual increase rate for manufacturing was a mere 0.2 percent and for construction, -3.1 percent. The biggest increase was in such services as professional, science, technology, medical care, and social welfare, which registered an average rise of 4.9 percent. Trailing behind were hotel and food & beverage, 4.7 percent; public administration, 4.3 percent; and culture, sports and leisure, 3.9 percent. According to an estimate made by the Council for Economic Planning and Development, in the next 10 years, the fast growing occupations are professional, science, and technology (4.1 percent), culture, sports, and leisure (3.9 percent), medical care and social welfare (2.8 percent), and hotel and restaurant (2.2 percent). Those that will register a negative growth are mining (3.5 percent) and construction (0.3 percent). By 2015, services will account for 62.3 percent of the entire lines (See Table 3).

As far as the occupational structure in 2004 is concerned, white-color workers accounted for 41.4 percent of the total, followed by service personnel and sales people (18.9 percent), agricultural and fishery personnel (6.4 percent), and blue-color workers (33.3 percent). Among the white-color workers, 18.1 percent, or the largest group, were technicians and professional assistants, with clerks and other professionals trailing behind. The smallest group was the management, 4.6 percent. According to a projection of the Council for Economic Planning and Development, the fastest growing profession in the next 10 years is that of professionals at 3.3 percent, followed by technicians and professional assistants, management, and clerks, in that order. The negative growing profession is that of agricultural and fishery personnel (-1.4 percent and -0.3 percent). By 2015, white-color workers will account for 47.1 percent; service and sales people, 19.7 percent; agriculture and fishery workers, 4.9 percent; and blue-color workers, 28.3 percent. Among the white-color, technicians and professional assistants will become the largest group.

Due to a decrease in the number of children, enrolments of schools at all levels in 2003, except for higher education, were on the downtrend. The average annual enrolment growth rate was –3.1 percent for elementary schools, -.1.6 percent for junior high schools, -0.4 percent for senior high schools, -1.2 percent for vocational high schools, -3.7 percent for junior colleges, 1.1 percent for university undergraduate programs, and 8.2 percent for university graduate programs. The average annual graduation growth rates for schools at all levels were similar.

In 2004, those with junior high education and lower represented 30.4 percent, with senior high school graduates accounting for 9 percent; vocational high school graduates, 27.7 percent; junior college graduates, 17.1 percent; and university graduates, 15.8 percent. The number of high school graduates was small because most of them went on to college. In the next 10 years, the fastest annual growth rate will be 6.3 percent for those at the university undergraduate level and higher, followed by junior college graduates (1.4 percent), vocational high school graduates (1.3 percent), senior high school graduates (0.6 percent), and those with junior high education and lower (-3.3 percent). By 2015, vocational high school and university graduates will be about 27 percent, meaning those having higher educational degrees will be more popular in the job market.

According to the Council for Economic Planning and Development, in the next 10 years, the number of people to be engaged in agriculture will be up by an average of 40,000, or 5.7 percent of the total increase, while that in industry, 266,000, or 38.2 percent, and in services, 390,000, or 56.1 percent. Specifically, the largest increase lies in manufacturing with 241,000, or 34.6 percent of the total, followed by medical care and social welfare, 141,000, or 20.2 percent of the total; wholesale and retail, 68,000, or 9.7 percent; other services, 51,000, or 7.3 percent; and hotel and restaurant, 33,000, or 4.7 percent. In other words, workers for manufacturing, medical care, social welfare, and wholesale and retail will be most needed in the next decade.

In the next 10 years, the white-color labor force will rise by an average of 201,000, or 28.9 percent of the total increase. Other figures include servers and salespeople, 108,000, or 15.5 percent of the total; agriculture and fishery workers, 38,000, or 5.5 percent of the total; blue-color workers, 349,000, or 50.1 percent. Of the white-color workers, 4,300 are civil servants and business managers, while there will be 6,600 professionals, 12,500 technicians and professional assistants, and 5,500 clerks.

Among the workforce in 2004, manpower at the junior level was 43.7 percent while those at the intermediate and senior levels were 46.2 percent and 10.1 percent, respectively. In the next 10 years, the senior level workforce will register the fastest increase of 2.8 percent, followed by intermediate-level workers at 1.7 percent and junior-level workers at 0.1 percent.

In the next 10 years, the junior-level labor force will grow by an average of 370,000, or 53.2 percent of the total increase, while intermediate-level workers will increase by 261,000, or 37.6 percent, and senior-level workers by 64,000, or 9.2 percent.

In the next 10 years, manpower supply at the senior level will be 41,000; at the intermediate level, 266,000; at the senior professional and management level, 20,000. But the need at the junior level during the same period is 371,000; at the intermediate level, 262,000; and at the senior level, 65,000. That indicates that there will be a shortage of 330,000 at the junior level in the next decade and 45,000 at the senior level, whereas an oversupply of 4,000 will be seen at the intermediate level. Details are shown in Table 4.

Table 4: Demand and Supply of Manpower -- Technical Level
Unit：Thousand
Technical Level	2005-8 Annual Average			2009-15 Annual Average			2005-2015 Annual Average
Technical Level	Supply	Demand	Comparison	Supply	Demand	Comparison	Supply	Demand	Comparison
Total	332	689	-357	324	700	-376	327	698	-371
Senior Professional and Management Workforce	15	65	-50	23	64	-41	20	65	-45
Intermediate Workforce	273	262	11	261	261	0	266	262	4
Junior Workforce	44	362	-318	40	375	-335	41	371	-330
Source：Council of Economic Planning and Development（2005a） The plan of Second Manpower Development in new Century

In recent years, the number of senior vocational schools has been falling while that for senior high schools is on the increase, with the rise at 312 for senior high and 161 for vocational high in the year 2004. Economic development has led to the reduction in the number of agriculture schools and industrial transformation has resulted in the decrease of commercial and industrial schools. While a downtrend is seen in the category of vocational high schools, there is a rise in the number of home economics schools (See Table 5).

Academic Year		1983	1984	1986	1988	1990	1992	1994	1996	1998	2000	2002	2004
Number of Senior High Schools		176	176	175	168	170	186	196	217	242	242	302	312
Number of Senior Vocational High Schools	Total	202	201	204	212	216	211	206	204	201	188	170	161
	Agriculture	6	6	6	6	6	6	6	6	6	6	6	4
	Agriculture and Industry	17	17	17	18	18	18	18	18	18	18	18	18
	Industry	35	35	35	33	31	30	31	30	30	30	28	28
	Industry and Home Economics	0	0	5	14	22	22	20	18	16	15	10	9
	Industry and Commerce	87	87	83	79	71	66	61	61	63	59	52	49
	Commerce	27	26	24	23	22	21	19	19	19	19	18	18
	Home Economics and Commerce	7	7	11	16	21	23	25	25	23	22	21	21
	Home Economics	1	1	1	1	1	1	1	1	1	1	1	2
	Nursing	1	1	1	1	1	1	1	1	1	1	1	0
	Marine Product	6	6	6	6	7	5	5	5	5	5	5	5
	Medical Administration and Nursing	13	13	13	13	13	13	13	13	12	7	5	3
	Drama and Art	0	0	2	2	3	3	3	4	4	2	2	2
	Commerce and Marine Product	0	0	0	0	0	2	2	2	2	1	2	2
	Nursing and industry	0	0	0	0	0	0	1	1	1	2	1	0
	Others	2	2	0	0	0	0	0	0	0	0	0	0

There were 1,285,867 college students in 2004, with large numbers seen in such majors as business and management, engineering, mathematics and computer, medicine and public health, and humanities. There were 41,691 undergraduate students majoring in information management, followed by business administration majors (39,924), electrical engineers (25,666), finance majors (21,936), mechanical engineers (21,456), electronic engineers (18,981), accounting majors (18,626), information technology engineers (18.468), international trade majors (16,813), and Chinese literature students (11,188).

At the master’s level, 3,667 students majored in electrical engineering, 3,248 in information technology engineering, 2,900 in mechanical engineering, 2,323 in business administration, 2,198 in information management, 1,698 in electronics, 1,544 in law, 1,502 in chemical engineering, 1,486 in civil engineering, and 1,334 in chemistry. At the doctoral level, 1,418 students majored in EE, 1,140 in information technology engineering, 1,052 in mechanical engineering, 716 in Chinese literature, 693 in chemistry, 594 in chemical engineering, 594 in civil engineering, 565 in business administration, 456 in material science and engineering, and 408 in information management (Ministry of Education, 2005).

The above figures indicate that emphasis at the undergraduate level is placed on management, on management and engineering at the master’s level, and on engineering at the doctoral level. A distribution of budget allocations for 2006 for the purpose of talent cultivation in the Economics Ministry affiliated organizations finds that 20.5 percent goes to digital content, 18.3 percent to projects for expansion in supply of industrial R&D personnel at the master’s level, 11.1 percent to international trade, 8 percent to semiconductor, 5.6 percent to chip systems, 3.7 percent each to image development and digital learning, and 2.6 percent to intellectual property. The figures show that the government is placing more emphasis on digital content and semiconductor as well as technology-related fields. However, efforts must also be made to tap talents in areas like marketing, design and communication to promote the development of knowledge-intensive service industries.

The development of a global economy has created a highly competitive marketplace. Many countries are reviewing their vocational education and training (VET) systems in the light of this trend. Rapid changes in the workplace and new technologies mean that a flexible responsive workforce with a high level of skills is a crucial factor in economic growth and competitiveness(British Council, 2005).

The world is facing the problem of an aging population. Between 2005 and 2015, Taiwan’s workforce comprising those aged 50-64 will go up by 4.7 percent per year and that composed of those 65 years or older by 6.5 percent, indicating the middle- and higher-aged groups will become the main stay. As a result, technological and vocational education will play an important role in reeducating those employed and waiting for employment in a lifelong learning society.

Taiwan’s industry was built up from manufacturing, and has accumulated an abundance of domain knowledge and talents. How to help those professionals absorb new technology is now the focal point in the cultivation of more talents to meet the challenge of globalization. The core of technological and vocational education should be centered on innovation, with a view to facilitating transformation of traditional industries by tapping human resources in the fields of design research and brand marketing.

As the service industries have become the mainstay of industrial development, Taiwan’s technological and vocational education must emphasize the importance of marketing and customer service, or, in other words, the creation of added value. Practical courses in concert with market needs are strongly suggested to follow the trend toward service-oriented industries.

Technological and vocational education has to shift emphasis from labor- and technology-intensive courses to knowledge-based ones. Knowledge-based industries will be star industries in the next 10 years with enormous room for development (Council for Economic Planning and Development, 2005b). The focal point of technological and vocational education should be on knowledge-intensive education.

Taiwan's economy has entered a new phase of industrialization, and the existing production model of large-scale manufacturing has gradually lost its competitive advantage. In addition to high-tech development, Taiwan must build a more flexible productive organization system to increase the competitiveness of the knowledge-based economy（Government Information Office ,2005）

Since the service industries are the wave of the future and the practice of outsourcing is changing the mode of international division of labor, Taiwan must take measures to face the challenge squarely. In addition to the development of high-tech, innovative and new service industries and the cultivation of talents needed, the government should also help make traditional industries sustainable by producing added value. Technological and vocational education must respond to national economic planning and development by tapping talents to meet industrial demand.

To meet the coming of service industries, school departments and curricula must be adjusted to coordinate with the 12 major government-appointed service industries in fostering related talents. These industries include finance, telecom, medical care, workforce distribution, and engineering consultation. In particular, emphasis must be placed on the creative and cultural industry flourishing in the advanced countries, a move that will help expand domestic markets, create job opportunities, and materialize industrial transformation (Hsu M.J.2005b).

To cope with globalization and the knowledge-based economic development, the authorities responsible for technological and vocational education should work with people in industrial and academic circles to work out a job forecast model that can provide accurate statistics for the government in its planning on human resources. In line with the trend in the next 10 years, emphasis of technological and vocational education should be centered on manufacturing, medical care and social welfare, wholesale and retail.

As blue-color workers constitute the largest group in need, vocational high schools should be kept but their curricula must be amended to meet with the structural changes in industry. As for white-color workers, the goal is to enhance professional capability through teaching rather than through research and academic development. Technological and vocational education must consider Overall conditions should be taken into consideration in planning for technological and vocational education rather than simply following the step of general education.

As people carrying letters of accreditation are easier to get jobs, a system must be set up to award accreditation to people who have completed professional training. New types of accreditation are to be identified through joint efforts between industries and schools. The technique-qualified accreditation should be promoted actively on integrating the current categories of occupation, while industries must be invited to participate in the compilation of indexes of core competency and curriculum. The credibility of certification should be set up for the support of industry to create more job opportunities. The system should be built with an understanding that it is following the world trend, which calls for promoting international accreditation to make Taiwan’s talents more competitive.

The goal is to “combine learning and employment.” In other words, under the principle of uniting “training, examination, and employment,” what should be avoided is the gap between talent cultivation and market demand and what should be promoted is the cooperation between school education and on-the-job training. Industrial immigration and transformation make it necessary for higher technology and vocational education to meet with the development of occupation clusters, combine social resources, promote strategy between school and industry, implement on-the-job training for employees, and develop the model for aptitude-based curricula. It is beneficial for the organization to upgrade career development of employees and increase the efficiency of management and competitiveness.

Different from past, the technical art education in junior high schools is positioned as “ career exploration ” on the work market. Boys and girls must be provided with more job opportunities by gaining professional skills starting from vocational high schools or occupation programs of comprehensive high schools. Making available a sound and fair learning environment for the underprivileged is one of the most important jobs for vocational education. Similar opportunities must also be given to the unemployed and the aged among the underprivileged. Technological and vocational education plays a critical role in upholding fairness and justice for people with low social and economic status.

Take the United States for instance. Of the 56 million jobs available between 2002 and 2012, some 42 million are open to those who have no university degrees (Occupational Outlook Quarterly, 2004). Vocational schools are the place where the underprivileged can undergo training to acquire basic work skills, while technological institutes and universities offer undergraduate degrees and advanced studies. Opportunities should also be given all the people to receive continuing education.

Globalization has multidimensional impact on society, industry and education. To cope with globalization, technological and vocational education must be retrofitted in the structure of organizations. Stages from junior high schools have to be repositioned:

Junior High Schools: Students should be taught to understand current job markets.

Senior Vocational High Schools: The curriculum must be readjusted to provide multiple choices for students.

Technology Universities: Talents should be trained for industrial upgrading.

Technological and vocational education was Taiwan’s engine of growth, which helped create an economic miracle of the twentieth century. Because of globalization, Taiwan’s industrial structure has changed from a labor- and technology-intensive one to a knowledge-based one. As a result, technological and vocation education has to be adjusted in response to waves of the industrial revolution. The change is highly likely to bring an end to the traditional mechanism for the cultivation of professional talents. While talent cultivation should not be confined to target industry, special attention must be paid to evoking dignity of learners.

As Taiwan has entered into an era in which technology, information and services are calling the shots, it is highly necessary to cultivate skilled workers for knowledge-based industries and those with capabilities of marketing brands and coming up with quality designs. In short, the ultimate goal of technological and vocational education is to promote the upgrading of industries. The transformation of industry may lead to a crisis of technical and vocational education, but it offers an opportunity, too. Technological and vocational education, if right decisions are made, has chances to make more progress (2006 Taiwan Development Perspectives).

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