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The IoT Development Strategies for Taiwan


Hsien-Tang Ko, Chi Chang, Nan-Shiun Chu
AbstractThe internet of things enables new forms of communications between people and things, and between things themselves by embedding short-range mobile transceivers into everyday items. The IoT can be applied in environmental monitoring, disaster prevention, health & safety, medical biometrics, smart transportation and smart vehicles to provide green environment and create new opportunities for ICT industry. Although several challenges remain to be overcome, Taiwan government has implemented application oriented policies and provided strategic incentives to stimulate the development of IoT. This study reviews international trends, Taiwans progress and strategies of six main applications, smart disaster prevention, smart logistics, smart energy, smart transportation, smart healthcare, and smart building. Also, the study underlines the establishment of IoT infrastructure and the integration of Taiwan ICT industry. Index TermsIoT; smart disaster prevention, smart logistics, smart energy, smart transportation, smart healthcare, smart building

owadays, the Internet of Things (IoT) develops at a rapid pace around the world. Forrester Research predicted that the proportion of the communication service business between something to something and human connect to human will reach 30:1 by 2020, so the Internet of things will be the next information services at trillion levels. [1] Governments have also defined their IoT policy as well, including the Intelligent Taiwan project in Taiwan, the i2010 policy framework of the European Commission, the i-Japan project in Japan, the IOT program in Korea, as well as China's Sensing China. The inclusion of Sensing China into the 12th 5-Year Plan indicates that IoT technology will be incorporated with policy developments on public infrastructure and livelihood. Market Intelligence & Consulting Institute (MIC) estimated that the global Internet of Things industry will hit to nearly 700 Billion USD by 2016. With further analysis of the IoT industry chain, IoT policy initiatives will spur IoT devices in a rapid growth. Meanwhile, approximately 384 Billion USD, or nearly 90% of the market value, is expected to come from software and value-added services as the true driving force behind the growth of the IoT industry. The development of the IoT applications in Taiwan will not only enhance soft power and stimulate the transformation of the domestic industrial structure, but improve the socio-economic environment and social welfare such as green buildings and smart grids. Furthermore, the IoT can be applied in environmental monitoring, disaster prevention, health & safety, medical biometrics, smart transportation and smart vehicles. Due to the highly integrated characteristic of the IoT, the introduction of rela

1 INTRODUCTION
tive services will create new opportunities for Taiwan ICT industry.

2 BACKGROUND
The concept of the Internet of Things was formally proposed in 2005 by the International Telecommunication Union (ITU) at the World Summit on the Information Society (WSIS). Under this concept, all objects in the world, from car tires to toothbrushes or from houses to paper napkins, can all actively communicate with each other through the IoT. RFID, tele-sensing and smart embedding technologies will also be used even more extensively. According to the ITU, the definition of IoT is by embedding short-range mobile transceivers into a wide array of additional gadgets and everyday items, enable new forms of new communication between people and things, and between things themselves. [2] At the China and EU Conference on the Internet of Things and Enterprise Environments held in September, 2009, the head of the European Commission's RFID Division Dr. Lorent Ferderix stated EU's definition on the Internet of Things: The Internet of Things is a dynamic global network infrastructure that has a self-organizing capability based on standards and interoperable communication protocols. All the physical and virtual objects in the Internet of Things have a unique identity, physical properties, virtual characteristics, intelligent interfaces and can be seamlessly integrated with communications networks. [3]

Hsien-Tang Ko is with the Industry Support Division at the Institute for Information Industry (III), Taipei, Taiwan 106. Chi Chang is with the Market Intelligence & Consulting Institute at the Institute for Information Industry (III), Taipei, Taiwan 106. Nan-Shiun Chu is with the Market Intelligence & Consulting Institute at the Institute for Information Industry (III), Taipei, Taiwan 106.

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Fig. 2. Framework for IoT Applications

3 IOT APPLICATIONS ROADMAP FOR TAIWAN (1): SMART DISASTER PREVENTION


Fig. 1. Scope of IoT Applications

The IoT development in Taiwan includes the use of RFID technology [4] and the development of smart building, energy management and smart healthcare applications through wireless sensing related projects. The most popular applications are RFID electronic tickets and micro-payments. Over 23 million smart cards have been issued as of 2010 [5], while other applications are still in the small-scale demonstration stage. Meanwhile, sensing technologies including ZigBee wireless sensor networking, powerline networking technology and, the information process platform technology defined by the Open Geospatial Consortium have been adopted for several years in Taiwan. Taiwanese industries actively participate in many international standard alliances such as ZigBee, G.hn and OGC. If these experiences can be integrated with the strengths of Taiwanese ICT industries in the design and manufacturing, high-quality and low-cost smart terminal devices can be deployed on a large scale. In developed countries, the goals of IoT and related application development focus on improving efficiency, environmental friendliness, green energy, safety and health. Therefore, IoT application policy in Taiwan can be divided into six main themes; smart disaster prevention, smart logistics, smart energy, smart transportation, smart healthcare and smart building. By drawing on ICT manufacturing strength, Taiwanese public and private sectors will collaborate and expand IoT technologies and applications. With the geographical and political advantage of the proximity to China market, Taiwanese IoT industry can consolidate domestic firms for entry into global markets. The short and medium-term goals are to execute two pilot projects for the IoT applications as well as related product certification centers in 2013, then successfully export two turn-key solutions by 2016.The long term goal is to develop Taiwan into the IoT innovation center and the leading country of IoT solutions in Asia.

3.1 International Trends Climate change has led to an increase in natural disasters around the world. The statistics from Swiss Re indicated that a total of 260,000 people were killed in natural disasters in 2010, a sixteen-fold increase comparing with the previous year.[6] In the report Nature Disaster Hotspots A global risk analysis published by the World Bank, Taiwan was placed in the high-risk category based on land area exposed to three or more types of natural disasters and the high proportion of population at risk (73%). [7] Under global climate changes, natural disasters such as large-scale debris flow, extreme rainfall and earthquake will exaggerate environmental impacts without adequate information and precaution. In response, the disaster policy in Taiwan now emphasizes that the disaster response system to incorporate with the smart network applications in order to reduce human error and provide early warning and emergency information for general public. 3.2 Developments in Taiwan The technology development of disaster prevention in Taiwan can be tracked back to 1998. The National R&D Project for Natural Hazard Mitigation was launched to lay the foundations for disaster prevention research and tool development. Accomplishments included disaster prevention databases, information systems, potential hazard surveys and risk analysis, disaster monitoring and early warning technologies as well as emergence response system. Initially, Enhanced Disaster Prevention Technology R&D and Implementation Plan was formally launched in 2006 with an emphasis on applied research and disaster prevention as the Phase 1 development. The major tasks included improving disaster early-warning technology, developing response strategies to emerging hazards and enhancing the application of technology research results. Then the Phase 2 development began with Disaster Reduction Applications Technology Program in 2011. The program focused on building an integrated disaster data, model and management platform to enhance the integration, flow, and exchange of disaster prevention data, aiming to strengthen disaster response strategies and decision-making.

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3.3 Response Strategies


Debris flow, typhoon and earthquake are the most common types of natural disasters in Taiwan. In the Disaster Prevention Applications Technology Program, the Taiwan government began by establishing an IoT disaster management platform to accelerate the integration and sharing of information. Existing government disaster information platforms were used as a basis to provide a secure and stable IT platform, meanwhile, disaster sensor data based on an open data framework from all agencies were integrated and converted into cloud application services suitable for back-end use. The next step is to use this platform to monitor and integrate basic data such as rainfall, earthquake, hydrology, bridge, transportation, medical, oil/gas and power facilities, to establish a disaster analysis/evaluation model and scenarios to devise responses to compound disasters. The scenario solutions will incorporate smart disaster prevention into requirement from general public for a safe life. Besides, assistance from Taiwan government will be given for developing different types of disaster prevention products and open information applications in order to stimulate industry development.

business integration will therefore focus on smart distribution chains that provide merchandise production resumes, progress tracking, distribution management and demand prediction. Due to the lack of environmental protection infrastructure in existing business districts, a comprehensive ICT infrastructure is proposed with functions for maintaining IT security and privacy as well for promoting energysaving and carbon reduction. In addition, existing business districts often find difficulties to track customer demand because of complex retail flows. Therefore, in the future, smart services, including interactive marketing, mobile internet channel and social network integration, will be developed to improve customer experience. Smart store will also enhance shopping flow analysis and inventory tracking functions.

4 IOT APPLICATIONS ROADMAP FOR TAIWAN (2): SMART LOGISTICS


4.1 International Trends Europe, the US, Japan, Korea and China are all actively developing the IoT applications to enhance their competitiveness and innovation in distribution services. Statistics provided by the Directorate-General of Budget, Accounting and Statistics (DGBAS) of the Executive Yuan in 2010 showed that the distribution industry, including wholesale, retail and logistics, accounted for 34.9% of all employed workers in this industry. The industry also accounted for 21% of the annual GDP over the past five years, making it an important part of economic development and social stability in Taiwan. Governments are now developing IoT Business Districts based on the IoT concept with investments from local authorities, residents, large telcos and business services industries. Various IoT applications can also be integrated to fulfill local demands. In Korea's Songdo International Business District for example, future retail applications such as smart clothing, self-service checkout, mobile shopping and e-shopping lists have been incorporated into the Ubiquitous Dream Hall. 4.2 Developments in Taiwan The business services industry in Taiwan is already relatively mature. In the future, turn-key IoT distribution service solutions can be developed and verified before being marketed to China. Government support for the development of smart distribution application services in Taiwan will therefore be based on the integration of industry business chain, sustainable environment and consumer experience. Existing distribution system cannot track realtime market demand and often experience an imbalance between supply and demand. Future developments in

4.3. Response Strategies The government in Taiwan began supporting smart distribution applications in 2007 with related projects such as the Processed Food Traceability System, Logistics Integration Technology, the RFID Value-added Application Demonstration, Smart Store, Smart-Shelf Enabled Service, Smart Recognition, ICT-Enabled Smart Business District, and Chinese E-Commerce Transaction Security. For business districts development, the smart stores will provide mobile geolocation, shopping route planning, customized shopping recommendations and e-payment for consumers. For back-end logistics and operations, precision distribution, logistics routing, safe inventory and merchandise restocking notification will be provided. As a whole, the IoT business chain will be focused on delivery tracking, inventory prediction, production process logging, stock prediction, merchandise resume information, temperature/humidity detection and management as well as flexible real-time merchandise dispatching. The implementation strategy emphasizes the construction of IT security, energy-saving and environmentally friendly infrastructure and then focuses on strategic applications to promote innovative services, business chains and business districts. This will include the building of interactive store environments, business chain integration and IoT application services for business district. These strategies will work together to create smart distribution services in Taiwan.

5 IOT APPLICATIONS ROADMAP FOR TAIWAN (3): SMART ENERGY


5.1 International Trends The fusion of ICT and energy technologies has brought a revolution in global industries. Smart Energy aims to utilize ICT technology to improve energy efficiency, creating unprecedented business opportunities. To meet the demand from the extensive use of renewable energy, energy conservation, carbon reduction and power grid security, the smart grid has become a keystone of the energy policy in many countries. The BBC Research and Pike Research predicted that the global smart grid industry

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will be worth $110 Billion USD by 2015, with the most growth and value in smart metering systems and energy management systems. [8] [9]

5.2 Developments in Taiwan Taiwan is currently dependent on imports to meet over 99% of its energy needs and the demand for energy continues to grow. Taiwan had previously launched the National Energy Saving and Carbon Reduction Plan, focusing on conversion to low-carbon energy systems, smart meter infrastructure and smart power services. In 2009, the Executive Yuan approved the Dawning Green Energy Industry Program to assist Taiwanese smart grid and energy ICT industry into the global energy ICT supply chain. In 2010, the Advanced Metering Infrastructure (AMI) project was added to the program under the energy ICT industry category, aiming to develop homegrown smarter metering system technology. The National Science and Technology Program Energy (NSTP Energy) directed by the National Science Council has made the smart grid as a key area of development, marking the advent of the smart grid era in Taiwan. The AMI promotion project launched by the Taiwan government in 2010 is a 6-year plan that expects to rollout AMI infrastructure to 5 million households by 2016. In Taiwanese smart meter industry however, firms are finding difficulties to enter the international market because of the lack of system integrators and experiences in low-voltage metering systems. In 2010, Taipower reported an average cost of NT $2.6 (U.S. $.087) per kilowatthour, nearly 2.5 times cheaper than the average electricity price of the E.U [10]. The relative low electricity prices in Taiwan and the lack of a standard interface and field experience hinder mass deployment progress in Taiwan. 5.3 Response Strategies To overcome these difficulties, the Taiwan Bureau of Energy plans to build smart grid infrastructure based on the Smart Grid and Advanced Metering Infrastructure General Project. Strategic planning is divided into the two key dimensions of technology and application. The first dimension is technology R&D including power quality, power transmission control, automated power distribution, micro-grid control, AMI & ICT technology, power management and demand feedback technology, power electronics, specifications and standards. The second dimension is the planning for the applications which is further divided into four demonstration projects, mainly micro-grid, AMI, smart home power management and advanced power distribution automation. The domestic R&D capability of the industry, universities and research organizations will be harnessed to construct smart grid and cultivate the local power equipment industry. At the same time, Taiwan Smart Grid Industry Association was formed to assist Taiwanese companies on developing related equipment, defining the laws and standards and establishing a safety certification procedure and laboratory. Time-of-use rates for low-voltage users will be introduced to encourage the adoption of low-voltage smart meters in Taiwan. Taiwanese companies will re-

ceive assistance on forming strategic alliances with large vendors of AMI data management systems to break into international markets such as Eastern Europe and Southeast Asia. For energy management systems, Taipower will focus on power planning and tariff design, analysis and planning on real-time power prices and demand response, output prediction technology, and energy storage and release optimization system. Taipower customers with AMI will be encouraged to adopt energy management equipment, while the planning of common home and energy communications standard is underway.

6 IOT APPLICATIONS ROADMAP FOR TAIWAN (4): SMART TRANSPORTATION


6.1 International Trends Smart transportation system refers to the application of advanced computers, information, electronics, communications and sensor technologies to improve the interaction among people, vehicles and road transportation systems through the provision of real-time communications and connections. This will in turn improve the safety, efficiency and comfort of transportation systems as well as effectively integrated transportation systems to reduce their environmental impact. Next-generation smart transportation systems have become a high-growth area of the overall transportation industry due to the construction of urban rail transportation and high speed railways. Intelligent Transportation Systems (ITS) covers a wide range of applications including uses of pedestrian, road, vehicle and public infrastructure. Besides, through transmission of real-time information, the efficiency of the transportation system can be greatly improved. BCC predicts that the market for ITS equipment will grow rapidly. In 2010, the global industry was worth 720 Billion NTD and was expected to grow at a compound annual growth rate of 22.2% to reach 1.95 Trillion NTD by 2015. In the Asia-Pacific region alone, the industry was worth 285 Billion NTD in 2010 and will reach 840 Billion NTD in 2015 [11]. 6.2 Developments in Taiwan Taiwan began conducting basic ITS research in 2003. In 2007, e-Transportation demonstration projects were put into place, including Advanced Traffic Management Systems (ATMS) for freeway and urban traffic control, Advanced Public Transportation Systems (APTS) for urban buses as well as Advanced Traveler Information Services (ATIS) for the national road information center. National highway information was included in ATMS, and highway buses information and the Traffic and Transportation Service Center added to APTS and ATIS respectively between 2008 and 2011. In 2011, the ATMS in the application layer of ITS has implemented through freeway/expressway/highway traffic control and urban traffic control centers in 18 regions and standardized urban traffic control communication protocol and system software, greatly reducing energy consumption and the time required for repairing equipment malfunctions. Urban bus and coach infor-

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mation systems have also been completed in 14 regions as part of APTS including more than 7,000 smart buses and 1,600 smart bus stops. More than 22 Android Market and Apple Store dynamic bus information apps were also developed for public use. A freeway/expressway traffic information platform has been constructed for ATIS and value-added applications that interact with the Traffic and Transportation Service Center are developed by 133 companies. However, Taiwan currently faces several issues in ITS. First, ATMS is lacking in inter-regional or inter-agency integration for seamless management services and the service quality in tourist areas also needs to improve. Each city has implemented its own system in separate years and phases, making integration or expansion difficult. Second, APTS suffers from poor quality of dynamic urban bus information such as inaccurate smart bus stops that are prone to malfunction and errors in bus information. Third, overall road information coverage is incomplete and the information quality can still be improved for ATIS. The stand-alone traffic control systems operated by each agency undermine the effectiveness to share hardware/software resources and databases in realtime. Finally, the increasing number of devices and growing demand for smart services begins to overwhelm conventional platforms.

mation equipment into buildings to create smart living spaces that provide a safe, healthy, convenient, comfortable and sustainable way of life. Advances in ICT technology have spurred the rapid development of industries and equipment related to smart buildings. In July, 2011, the Nikkei BP research institute reported that the global market for smart buildings will grow from 1,000 Billion Yen in 2010 to 2,200 Billion Yen in 2015 and 65 Trillion Yen in 2020. [11] The development plans for digital lifestyle related industries at the Ministry of Economic Affairs expects that the global market for smart buildings and smart building networks is expected to be worth 214.2 Billion USD by 2015. [12]

7.2 Developments in Taiwan


The origin of the smart building policy in Taiwan can be traced back to the construction automation policy in 1990, including studies and pioneer research into smart buildings as well as the drafting of design specifications. The Architecture and Building Research Institute (ABRI) under Ministry of the Interior also launched Intelligent Building Certificate in 2003 and defined evaluation indicators for smart buildings. To boost the value of the ICT industry, the Executive Yuan proposed the smart living spaces policy in 2005 aiming to adopt human culture and customs as a starting point to identify the development advantages of Taiwan. At the end of 2010, the Executive Yuan also passed the Smart Green Building Promotion Plan. The most crucial element in the design and construction of smart buildings is the integration of low voltage systems with ICT and cabling. In most existing government and private building construction projects however, smart building design is seldom considered and the inclusion of smart systems into construction tenders are even rarer. Besides, an aging society with declining birth rates has led to a rapid change in building styles and new functional requirements such as the elderly living alone, personal safety and home health care. The result has arisen up some problems including incompatible smart systems and services operating independent of each other. These not only inconvenience users but also impact on industry development. In the early years, Taiwan generally drew on international regulations and standards when defining the regulations, rules or standards for buildings, materials and equipment. However, smart building is a new field lacking global legislation, guidelines, evaluation schemes, and precedents.

6.3 Response Strategies The strategy of Taiwan government seeks to introduce cloud computing technology and framework to support ITS platform. The goal is to improve ITS efficiency and promote inter-regional integration to reduce software/hardware operating costs. Inter-regional system integration is also being carried out for ATMS and regional traffic control centers set up to bring in professional traffic management technology services provided by third parties. Inter-regional integration of e-bus systems for APTS will enable seamless transfer for public transportation as smart buses and bus stops continue to be installed. Geolocation technology is being applied for ATIS to improve information coverage and integrate road conditions, events and emergency information. Finally, tourism databases and ICT technologies are incorporated into tourism services. The above strategies and action plans will hopefully deliver smart transportation that is smooth, convenient and safe for general public. For the industry, this promotes the vertical and horizontal integration of smart transportation and onboard ICT industries to make Taiwan industries more competitive. For the country and society, it will create a green, energy-saving and highquality transportation services system as well as a clean transportation/freight environment.

7 IOT APPLICATIONS ROADMAP FOR TAIWAN (5): SMART BUILDING


7.1 International Trends Smart buildings integrate IT infrastructure such as electronics, electrical engineering, ICT technology and auto-

7.3 Response Strategies Taiwan government proposed the Promotion of Smart Building as the Next Trillion Dollar Industry implementation strategy that takes design, construction, incentives, rewards and industry specification into consideration and provide recommendations. The strategy helped the industry, universities and research sectors to identify key areas for the implementation and promotion of smart buildings. For the design and construction of smart buildings, public buildings are to lead the way in adopting green building design. Building codes on cabling will enable the flexible

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replacement and the ease of re-design for smart building. This will result in a cabling system that simplifies the integration and installation of voice, data, and video systems. Taiwan government has now proposed incentives, including Regulations of Bulk Reward for Urban Renewal and low-interest loans and tax rates for smart building developers in order to raise industry awareness of green buildings. Taiwan government will also provide funding for vendors who involve in smart building technology and standardize smart building materials and products.

user-pays business models. As smart healthcare generally succeeds with inter-industry cooperation, the stability of inter-industry relationships, the nature of the industries involved as well as the required learning curve must all be considered to realize a successful outcome.

8 IOT APPLICATIONS ROADMAP FOR TAIWAN (6): SMART HEALTHCARE


8.1 International Trends Smart healthcare generally refers to the application of ICT technology to medical care to improve the efficiency of medical services. Smart healthcare includes electronic patient records, picture archiving and communications systems (PACS), value-added health database applications, telemedicine and RFID recognition applied in hospital care. Due to the popularity of smart phone, wireless network, data center and cloud computing technology in recent years, hospital systems and operating models may be completely transformed. According to the World Health Organization, the population over the age of 65 around the world will peak between 2011 ~ 2029. The global average lifespan has also increased by 6 years since 1990. [14] The experiences in developed countries such as Europe, the US and Japan indicate that just 5~10% of the aging population will move to retirement villages and old age homes, while the majority will still be aging in place. 8.2 Developments in Taiwan
Taiwan has fewer retirement communities than countries like Europe, the US and Japan. Telemedicine and smart care industry will therefore become critically important. Taiwan government has been actively assisting with the development of the smart healthcare industry and has listed the medical electronics industry into one of the six key strategic industries. In April, 2009, the Taiwan government launched the Smart Healthcare Acceleration Plan and Health Care Value Boost Action Plan. An examination of current progress in these areas shows that hospitals barely have incentive to implement electronic patient records and make them interoperable because of the high initial setup cost, lack of immediate benefits, shortage of IT personnel and funding in hospitals as well as unfamiliarity with the procedure and technology. Besides, IT security is crucial to prevent electronic patient records from attacks or misuses during hospital transmission. The biggest challenge for the industry is to find a suitable business model that users are willing to pay. Out of current service providers, only Far Eastern Memorial Hospital, Cheng Hsin General Hospital, National Taiwan University Hospital and SECOM have implemented true

8.3 Response Strategies The Smart Healthcare Acceleration Plan and Health Care Value Boost Action Plan began developing the guidelines and infrastructure for electronic patient records such as privacy protection legislation, inter-operable electronic patient records and computerized medical procedures. Through the above plans, Taiwan has integrated healthcare with ICT technology to develop telemedicine for the community, home and institutions. Citizens will be able to access medical resources and services with ease. Even though Taiwan has plenty of industry, university and research R&D capability, the integration of hospital resources is proving difficult. In the future, the government will take the lead in integrating related industries such as medical devices, telecommunications and security industry in order to promote and expand the service model for smart healthcare. The industries have expressed strong interest in the opportunities offered by inter-industry alliances on smart healthcare. The Department of Health stated that PACS and electronic patient records used by major hospitals will generate more than 12 Billion USD in business opportunities globally. In the future, manufacturing and R&D capability for home medical devices can be harnessed to develop healthcare products and technical systems. The strength in the ICT industry will encourage major international vendors to test their service models in Taiwan. The service model can then be duplicated and disseminated in Chinese markets to further enhance the competitiveness of ICT and medical industries.

9 CONCLUSION
Current developments of the IoT applications in Taiwan show that the IoT services remain an emerging application that most of the general public is unfamiliar with. The IoT industry in Taiwan lacks a government-led largescale development strategy and real-world examples of significant size to refer to. The dearth of concrete commercial service to date has affected public acceptance in the Taiwan market. IoT is an industry that offers increasing economies of scale and requires a hands-on approach so the Taiwan government should be trying to identify the market niche as soon as possible rather than waiting for everything to become certain. Basic industries such as construction, utilities, fuel and transportation along with industries where sensing can improve management efficiency offer the best return on investment and provide the largest international market. For example, logistics will be areas in the IoT where viable business models could be developed first. Taiwan government should invest resources from an industrial development and business sustainability perspective.

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While the smart city services mentioned previously have the most effect on the general public, the difficulty with charging for these services means that those services will be hard to develop in the short-term. On the other hand, some parts of the infrastructure such as smart grid can be exported throughout the world if a business model proves successful. Future strategy in Taiwan will provide incentives and encourage local governments/vendors to actively invest in value-added applications. Service providers in particular may consider partnering with service platform integrators if they wish to quickly capture trends and cultivate the IoT application services market before their own IoT platform and applications have fully matured. IoT application services such as smart disaster prevention, smart transportation, smart energy, smart logistics, smart building and smart healthcare can be effectively developed with resources concentrated in key infrastructure. In the future, innovative business models and world-class turn-key solutions will hopefully be developed and marketed globally.

BP, Tokyo, Industry Report 2011. [13] Ministry of Economic Affairs, "Economic Development Vision for 2015," Taipei, Government Report 2007. [14] Dejan Loncar Colin D. Mathers, "Updated projections of global mortality and burden of disease, 2002-2030:data sources, methods and results.," World Health Organization, 2005. [15] "Telecommunication figures in 2010," National Communications Commission, Taipei, 2011. Hsien-Tang Ko received an MBA degree from the National Taiwan University and Ph.D. degree from the National Taiwan University of Science and Technology. Dr. Ko is currently a Director General of Industry Development Augmentation Division at the Institute for Information Industry (III) in Taiwan and an Adjunct Professor in the Graduate Institute of Management at the National Taiwan University of Science and Technology. Dr. Ko has joined the Institute for Information Industry (III) in Taiwan since 1984 and is responsible for stimulating Taiwans communications and DTV industry via technological development and industrial promotion now. His research work has appeared in journals such as Journal of Computing, Behaviour & Information Technology, Management Decision, The Service Industries Journal, International Journal of Digital Television, and Journal of Service Management. Chi Chang received an MBA degree from the National Central University. He is currently a Deputy Director of Market Intelligence & Consulting Institute at the Institute for Information Industry (III) in Taiwan. Mr. Chang is also the consultant specialized in WiMAX, FTTx, VoIP, Broadband, and Mobile communications. He has been in charge of the M-Taiwan Program, Telecom Applications Platform Development and Promotion Program Since 2004 as a sub-project manager. His research work has appeared in journals such as International Journal of Automation and Smart Technology, Journal of Computing, and Behaviour & Information Technology. Nan-Shiun Chu received an MBA degree from The City University of New York, Baruch College. He is currently a Senior Industry Analyst & Senior Manager of Market Intelligence & Consulting Institute at the Institute for Information Industry (III) in Taiwan. Mr. Chu has joined the Telecom Applications Platform Development and Promotion Program Since 2007 and DTV Value-Added Services Development and Promotion Program since 2009, as a project team member and sub-project manager respectively. His research work has appeared in journals such as Journal of Computing, Behaviour & Information Technology, International Journal of Automation and Smart Technology, and International Journal of Digital Television.

ACKNOWLEDGMENT
This research is mainly based on the materials and conclusion of 2011 Strategy Review Board held by the Science and Technology Advisory Group (STAG) of the Executive Yuan, R.O.C.)

REFERENCES
[1] EPoSS, "Internet of Things in 2020: Roadmap for the future," Forrester Research, 2008. [2] "ITU Internet Reports 2005: The Internet of Things," Geneva, 2005. [3] Lorent Ferderix, "China and EU Conference on the Internet of Things and Enterprise Environments," , Beijing, 2009. [4] Nienchu Wu, Hsin-Hann Tsai, Yu-Shing Chang, and Hsiao-Cheng Yu, "The radio frequency identification industry development strategies of Asian countries," Technology Analysis and Strategic Management, p. 422, May 2010. [5] "Landmark of EASYCARD," EASYCARD Corporation , Taipei, 2010. [6] Swiss Re, "Preliminary estimates for 2010 from Swiss Re sigma show that natural catastrophes and man-made disasters caused economic losses of USD 222 billion and cost insurers USD 36 billion," Swiss Re, Zurich, News 2010. [7] Maxx Dilley, "Nature Disaster Hotspots-A global risk analysis," World Bank and Columbia University, 2005. [8] "Smart Grid Technologies, "Networking and Communications, Energy Management,"" Pike Research, 2009. [9] "The Global Market for Energy Management Infornation System," BCC Research, 2007. [10] European Commission, "Energy price statistics," Eurosat, Brussels, Statistics Report 2011. [11] BCC Research, "Technologies for Intelligent Transportation Systems," BCC Research, Wellesley, Industry Report 2010. [12] Nikkei BP, "The Global Market Size of Smart Home/Building will Reach 65 Trillion Yen by 2020, with China Topping at 24 Trillion Yen," Nikkei