Business models for R&D service firms in Taiwan

In Taiwan, there is a high level of uncertainty attached to R&D projects. The experts are often hidden away within research institutes or academic units. Faced with the shorter product life cycles as well as the inability of business entities to nurture R&D talents to meet market demand. Taiwanese industries hoped that through the assistance of R&D service firms. Interaction between corporations and R&D service firms takes on many forms. This study presents two types of R&D service firms, Professional Employment Organisations (PEO) and Contract Research Organisations (CRO), represented by Tecnos Corporation and ITRI respectively. This research will cover the strengths and weaknesses of each of these two respective organisation models. Consequently, this study combines the characteristics of both organisations, recommending an operational model that can be described as a 'virtual CRO' and suggest management approach.