A look at four other types of cultural and creative industries that have been identified as offering significant potential for development.

BY ANNA CHENG

Movies

Asked their thoughts about locally produced cinema, Taiwanese are likely to mention last year’s box office bonanza, Cape No. 7. But they might go on to confess that it’s been years since they’ve seen another local film. The central question for the domestic movie industry is whether Cape No. 7 (a romantic comedy that played off several different levels of Taiwanese culture) was a fluke – or whether the momentum it garnered can be extended to other local productions, helping to resuscitate Taiwan’s long-stagnant cinema industry.

As one of the six flagship industries selected for inclusion under the Cultural Innovation Plan, movie-making should at least now be assured of greater government support than it has received in decades. The Government Information Office, in written answers to questions submitted by Taiwan Business TOPICS, said the government has “revised laws and regulations concerning internationally co-produced films, strengthened related supportive measures, relaxed restrictions on applying to use venues, and assisted county and city governments in setting up offices to aid in the process of filmmaking.”

Some in the industry, however, criticize the government as providing only “lip service” and “failing to deliver on their promises.” One industry leader complains that too little has been done in two crucial areas: providing tax incentives to help make movie projects more financially viable (as has been done successfully in such countries as Ireland and Australia) and strengthening intellectual property rights protection. Although there is wide recognition that Taiwan has improved its IPR regime, those in the industry note that serious problems still remain, especially in the form of internet piracy.

If the success of the GIO-sponsored Cape No. 7 is to be more than just a one-off phenomenon, the challenge will be to come up with a steady stream of local productions that can resonate with local audiences in a market that currently is nearly completely dominated by Hollywood films. “Films that can capitalize on local culture will be the key to success in this industry,” says Eugene Yang, general manager of Universal Pictures Corporation of China. “Cape No. 7 had all the right elements that made it work,” he notes, alluding to its sense of history and nostalgia, well-drawn characterizations, and effective use of place – the Hengchun Peninsula. “Without the development of Taiwanese produced films, we’re subject to U.S. blockbusters, meaning we’re stuck relying on only one source.”

The GIO has pledged its help, noting that its budget for “assistance and guidance to the film industry” has more than doubled from the NT$180 million (US$5.5 million) of 2002 to the current NT$430 million. GIO Minister Su Jun-pin explained in an interview that this support will grow under the new Motion Picture Industry Development Flagship Plan – devised in accordance with the Executive Yuan’s overall initiative to promote Taiwan’s cultural and creative industries – which will be implemented over the next five years. The aims are to expand the audience base for domestically produced movies by encouraging filmmakers to produce high-quality but commercially attractive works, to make the most of the opportunity presented by improved cross-Strait relations to build a market on the mainland, and to heighten global interest in Chinese-language films.  

Performing Arts

The Cloud Gate Dance Theatre is a name that resonates deeply within Taiwanese society. One of Asia’s leading modern dance companies, it has won countless international awards since its creation in 1973 by famed choreographer, writer and dancer Lin Hwai-min, who has helped open new cultural horizons for Taiwan.

What is less well-known is that Lin has been giving back to the community by operating a network of Cloud Gate Dance Schools since 1998. Using a combination of training methods from both East and West, the schools put less emphasis on teaching dance technique than on creating an appreciation for dance and other forms of culture, as well as helping children build self-confidence and a positive body image.

CEO Kate Huei-wen Wen had been with Cloud Gate Dance Theatre since 1983, and in 2001 took over leadership of the Cloud Gate Dance School (a separate legal entity from the not-for-profit Cloud Gate Foundation that administers Cloud Gate Dance Theatre). Wen expresses hope that the Executive Yuan’s new Cultural Innovation Plan will open up new opportunities for performing arts groups such as Cloud Gate. She notes that for most of its history, Cloud Gate Dance Theatre was not viewed as part of a wider industry “but rather as just an individual” troupe. “So we had very little help with funding or other support from the government.” Wen recalls that “it wasn’t until 1991 that we started receiving more government grants and it was only in 2002 that the government started talking about us as an industry.” 

Stressing the government’s commitment to finding practical ways to boost cultural industries, Minister without Portfolio Ovid Tzeng says that “we are looking into tax exemptions, funding, and other incentives to help local artists and performers compete in the global marketplace.” Tzeng said that one of the purposes of the CCI Promotion Group of which he is vice chairman is to examine existing government programs and budgets to find additional sources of funding for cultural projects. Tzeng, who has primary responsibility within the Executive Yuan for the Cultural Innovation Plan, notes that the government is ready to “provide money, personnel and training packages to ensure that cultural industries get the assistance they need.” 

For her part, Wen is focused on educating the younger generation about dance so as to create future audiences. The Cloud Gate Dance School now encompasses 21 “sister schools” in seven cities throughout Taiwan. Another objective of the school is to provide youngsters with an outlet to develop their creativity, breaking out of the traditional Taiwanese pattern of placing emphasis only on rigorous academic training. Once unleashed, “the creative energy in Taiwan is amazing,” she says. If the new Cultural Innovation Plan can fulfill its promise, and with programs like the Cloud Gate Dance School’s to reach kids at an early age, she sees hope for Taiwan to build a healthy, sustainable environment in the performing arts.

Industrial Design

Taiwan was long known as a center for low-cost manufacturing. Now with the rise of globalization and the availability of cheaper labor in countries such as China and Vietnam, Taiwan needs to find another distinctive competitive advantage. Developing its industrial design capability is seen as one way of helping to ensure that its companies stay ahead of the game.

Local companies such as BenQ, which markets consumer electronics, computers, and communications devices, have been winning more and more international industrial design awards. Since its inception in 2001, BenQ has received over 200 prestigious international design recognitions. In 2008 alone, BenQ’s won four iF Product Design Awards, six Red Dot Design Awards, three Good Design Awards, and the Bronze Award in the Interactive Product Experience category at the 2008 Industrial Design Excellence Awards (IDEA).

Known as the “design Oscars,” the iF Design Award is organized by the iF International Forum Design Hannover of Germany. The Red Dot Design Awards from Design Zentrum Nordrhein Westfalen in Essen, Germany honors products for their innovative design, exceptional quality, and high functionality. IDEA, co-sponsored by BusinessWeek magazine and the Industrial Designers Society of America, selects the most creative product designs based on economic efficiency and aesthetic appeals. The Good Design Award from Japan recognizes innovation in design that improves the quality of life while simultaneously advancing society as a whole. 

Some of the other Taiwan companies that have been gaining an international reputation for their design quality are AsusTek Computer, Acer, and Cellink. Last year, a record 49 Taiwan-based companies competed in the iF Product Design Awards, coming away with 75 awards, more than double the number gained by the 25 participants in 2007. The substantial increase in entrants and awards shows that Taiwan realizes it can no longer compete internationally “with its former economic model of standardized production and price competition,” said Minister of Economic Affairs Yiin Chii-ming in a written reply to questions from TOPICS, and must instead “give way to an economic model rooted in creativity, diversification, and high quality.” The Ministry of Economic Affairs (MOEA) notes that this year Taiwan has won 757 design awards as of May, a tremendous increase from the 16 awards received in 2003. Yiin adds that the government has been finding ways to promote Taiwanese design in Paris, Berlin, Milan and other fashion centers since 2007, an effort that has “raised the profile of Taiwanese fine design in the media and among buyers, allowing for advantages in product marketing and building industry capacity.”

Taiwanese organizations have also been active participants in the International Council of Societies of Industrial Design (ICSID) and International Council of Graphic Design Associations (IGOGRADA), and last year Taiwan won the hosting rights for the 2011 International Design Alliance Congress. 

Explaining his ministry’s designation of design as one of its six flagship industries under the newly approved Cultural Innovation Plan, Yin says “design is one of the best ways for a company to add value to its products.” He considers that Taiwan’s design sector has great potential and will be make a substantial contribution to enhancing Taiwan’s global competitiveness. According to the MOEA, “revenue and employment in the design industry are growing at [annual] rates of 28% and 14% respectively, beating the growth of all other cultural and creative industries.”

Animation

Taiwan was formerly a powerhouse in supplying animation works to Hollywood studios such as Disney and Warner, as well as Japanese companies, on an OEM basis. But when most of that labor-intensive business was lost to lower-cost countries such as Thailand and China, local producers developed the urge to showcase their own creative talent.

According to Vick Wang, former CEO of Sofa Studio and the visual effects director of Columbia Asia’s animated feature Double Vision, the drive in the animation industry to create original content is a phenomenon that began about five years ago. Wang is currently working with Taiwan’s Institute for Information Industry (III) to put together an Animation Alliance to connect animators in Taiwan with local companies looking for creative talent. III was established in 1979 jointly by the Taiwan government and prominent enterprises for the purpose of strengthening the development of the information industry in Taiwan.

Newly established, the Animation Alliance already has 30 companies as members and 40 animation schools as participants. The Alliance is housed at the Digital Content Institute, which was set up by III in the Nankang Software Park to train future animators; the Institute currently has 12 full-time staff members and expects to increase the number to 40 by year-end. 

Wang concedes that locally produced animation faces major challenges. One disadvantage is the newness of the industry; with that short history, there has been no time for the development of cult-like followings of animated characters as with Japan’s Hello Kitty and her long list of friends. “We are trying to create all-new characters, which is very difficult,” he says. Although “the massive and lucrative Japanese anime market” is close by, he adds, “it’s hard for outside companies to break into.”

He notes that five years ago, the government put a lot of resources into developing animation/original content, visual/special effects of new films, and games, but without much success. He is hopeful that the latest approach will be more fruitful.

Currently, the government is providing funding of up to US$1 million per project to subsidize development of prototypes of original works in such genres as feature films, games, TV series, and animation shorts. Once the prototype is completed, the government will help seek venture capital to push the project forward. Funding is also being made available to train more animators.

Wang says he is “more than appreciative” of the government’s support, but cautions that financial help is not the only form of support that is needed. “Taiwan is full of creative talent to produce original animation but they don’t have the know-how to understand legal contracts and push their products to the right markets,” he notes. Government assistance with marketing, promotion, and legal advice is also essential, he says.

In the meantime, the MOEA is continuing to promote digital content as one of the six flagship cultural/creative industries. It plan will concentrate on the eight areas of digital gaming, computer animation, e-learning, multimedia applications, wireless services, content software, internet services, e-publications, and digital archiving.