Process of Research - Research Methods/Processes

1.3 Research Methods/Processes

1.3.2 Process of Research

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Moreover, the evolution of the industrial structure changes which was caused by the quality of human resource, research, enterprise, higher education personnel work of

"Incubation (育才)", "Maintaining (留才)", "Recruiting (攬才)". In this study, the number of international students, the willingness westward to work in China, foreign workers, personnel policies and personnel layout will be based on the relevant policies of the departments of the Ministry of Education and other data on higher education to explore the positive approaches of Taiwanese human capital dilemma in the current situation.

This study collected related information and data are enclosed: the related e-Books of China and Taiwan, websites of government, annual reports of education, official documents, laws and regulations of education, research reports, journal articles, dissertations, newspaper reviews, and books.

1.3.2 Process of Research 1.3.2.1 Data collection.

1.3.2.2 Literature review.

1.3.2.3 To collate, summarize and analyze the data.

1.3.2.4 Making recommendations and conclusions.

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Section 4、The research scope, content and limitations 1.4.1 The research scope

Facing the global human capital competition to enhance the national competitiveness and economic strength, every country is increasing human capital recruiting efforts, especially in Asia, such as Hong Kong, Singapore, Korea and China more fierce. The poaching and the flow of human capital has become an universal phenomenon. As to the "brain drain" discussion, this study does not only discuss the recruiting status of human capital flow of the Four Little Tigers in Asia and China, but also emphasize on practical implementation of the effects, problems and corresponding countermeasures of "Incubation", "Maintaining", "Recruiting" work as this research subject.

Followed by the good human capital foundation in the 1970s, the advantages of Taiwan human capital have gradually lost due to the fierce fight of political parties and the more stretched international situation and competition. It is getting harder in the implementation of the "Incubation", "Maintaining", "Recruiting" human capital , although the government has launched the policies of the "22K of bachelor employment program", "57K PhD industry employment program" and "5-year 50 billion major universities plan" to solve the unemployment problem. It is still the urgent needs of palliatives with the global economy and college students' oversupply.

The formation of Taiwan human capital becomes that "students cannot do what he learned", "enterprise has working vacancies but no workers", "high-level human capital loss" and "highly educated unemployment rate".

In this regard, the Government is strengthening and sophisticating on human

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capital policies through industry, government, academia and research exchange by views and discussions to enhance the communication focusing on the practical solutions. The President will make an important speech focusing on human capital policy, hoping to alleviate the current personnel dilemma on May 20, 2013.

Because it is not an easy job to address human capital problem by personal force, this paper is not available to investigate the whole issues easily and original official data are inconvenience collected. For analyzing the further human capital dilemma of Taiwan, this paper will emphasize on the implementation overview and faced problems of the "Incubation", "Maintaining", "Recruiting" human capital and give the personal opinions for the government.

1.4.2 The research content

"Human Capital Flow" is the current global attention issues. The progress of civilization and "Human Capital Flow" are the same way. "Human Capital Flow" is also a common phenomenon among countries. However, this is an important and serious issue how to recruit the needs of human resource and to retain the cultivation of human capital in the country.

This study will classify out human capital needs on globalization first, and the effects of human capital flows followed by the economic cycle theory and the industry development history. Furthermore, I will compare Hong Kong, Singapore and Korea of "Asian Little Tigers" and China to understand its existing overview and policy of human capital with the difficulties of human capital policies in Taiwan for the references of our future government human capital policies.

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1.4.3 The research limitations

1.4.3.1 I was just retired from the army service and had serviced at the important units of the Defense Department, which is limited by the 2^nd and 4^th item, the ninth article of Ordinance of people relationship of both countries. Moreover, I have signed the

"confidential agreement" that is prohibited to enter China. Even though the period of limitation expires, I still will comply with the limitation of prohibiting into China forever to avoid increasing the national and personal plagued. From the data collected, I will gather through a Chinese official government website, statistic data and academic articles as references for writing direction, the same collecting methods with Korea, Hong Kong, Singapore and other countries.

1.4.3.2 I originally planned to use the the fieldwork investigation in this research to actually understand the policies and countermeasures of brain drain of the relevant industry, academic, research and government by letters (Table-2 The communications records) to collect the internal data. However, the Personal Data Protection Act has been implemented on October 1, 2012. Those authorities in order to avoid conflict with the law declined to provide the internal information or reference. Moreover, my ability is limited without enough social relations for the dynamic data collection.

However, to ensure the information reality, credibility, and credibility in the process of writing papers, I will continue to deliberate the government current promoted policies and press releases, as well as references.

1.4.3.3 For Taiwan, the dynamic situation of "Incubation", "Maintaining", and "Recruiting"

human capital is limited by the provisions of Article 10 of the Constitution. "The people have the freedom of movement and residence, freedom". The Article V of the Immigration Law: "The Taiwanese residents have freedom of entry and exit and do

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not need to apply for permission except the national security staff". Moreover, the provisions of Article 9 of Ordinance of people relationship of both countries: "The Taiwanese entering China shall be approved by the general outbound inspection program. As to the data of high-tech, academia brain flow, this is not available to gather by the Immigration Department because the passport will not give the information of occupation, purpose outbound and career, only for those restricting the exit. For the residence information about foreigners in Taiwan, it is available through the Immigration website. As to the dynamic data flow of human capital, I only gathered from the foreigners residence information from the Immigration Department and current job investigation parameters of 1111-Job Bank. Thus, the current countermeasures of "Incubation", "Maintaining", and "Recruiting" human capital will be collected from the official government statistics and policies as the basic foundation and the job bank as the reference.

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Table-2 The communications records

Fields Receiver's E-mail Reply Content Appendix

Science Gin, he said this information is for internal confidential and it cannot be supplied.

2 security of our students.

National Chiao Tung University

（nc50663@nctu.edu.tw）

According to the Ministry of education norms, it is currently only available for the reference of the Council without released by the public or used for other purposes. Please understand.

5 published on the Website of the school.

Our main business is to help domestic enterprises to recruit overseas human capital service. As to the

"Brain Drain" statistical data, please obtain from the relevant authorities.

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Please refer to the relevant

data through the website. 10 104 Job Bank

（lolin.lo104@104.com.tw）

Currently, we have found similar reports articles, please click on the following Web site.

E-job Job Bank

（FindJOB@mail.ejob.gov.tw）

Due to the the Personal Data Protection Act, we cannot supply you the information.

Global Views Monthly

（gvm@cwgv.com.tw）

Please refer to the public information published by the magazine that we are unable to provide additional data.

Common Wealth Magazine

（bill@cw.com.tw）

The magazines already published the relevant information. If you need to search any information,

Please refer to our official

website. 15

Industrial Development Bureau of the Ministry of Economic

Affairs

(service@moeaidb.gov.tw）

We don’t have the relevant statistical data, please refer to the Web site of CEPD.

Mainland Affairs Council

（macst@mac.gov.tw）

We do not have the relevant

information. 17

Bureau of Employment and Vocational Training.

（b73000026@evta.gov.tw）

Please refer to the Web site

of CEPD. 18

National Youth Commission

（jftsaur@nyc.gov.tw）

Please refer to the Web site of CEPD and Education Department.

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Chapter 2、The theory of globalization and human capital flow

Section 1、Preface

In this information era, knowledge flows quickly and transcends borders. Globalization and Internationalization is almost irresistible. Many successful countries, companies and individuals are able to predict the future and make decisions faster than the others to seize the opportunity and maintain their priority. Globalization refers to all members in political, economic, social, and cultural interactive and beyond the borders in the global village.

Globalization¹² is a process, which is the phenomenon of social relations integration up due to the information and communications technology developed. In this era, a head office in the United States of transnational corporations can put the order through the real-time network to Taiwanese manufacturers and then the Taiwanese manufacturers put the products' specifications and data conveyed to the instructions to the China factories for production.

When each country plays the different roles in the production in the sales process, which is able to complete the task by globalization with the geographic barriers restrict collapsed.

12 張庭，《2010 社會學》，志光文化，第 9 章 22-25 頁。

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Section 2、The globalization theory and human capital flow

Since the phenomenon of globalization has been existed from ancient era, the watershed concept of globalization that most people think is from the computer invention in the 1970's by the information revolution. The origins of the term of "globalization" was first introduced by Theodore Levitt¹³ in 1983, used to describe the significant change in the international economy from 1965 to 1985, that is, goods, services, capital and technology in the global proliferation of phenomena in the fields of production, consumption and investment. The Organization for Economic Cooperation and Development (OECD) Economist S. Estuary in 1990 have also adopted this concept that refers to the production factors in speed and on a scale unprecedented in the global movement to seek an appropriate location and configuration¹⁴. Ohmae, the Japanese management master, noted in 1990 that the globalized economic activity through the transnational activities such as production, trade and financial integration. The enterprise or region plays a major push to build a new way of social organization that means the globalization eventually replacing the nationalization.

When capitalism entered the period of globalization in the late 1970, each country faces the fierce competition with each other and the third world country is to survive the crisis in this transitional phase. However, the trends of world globalization including the three characteristics are as follows¹⁵:

2.2.1 Led by financial capitalism

With the globalization, the funds of financial markets have the plenty of hot money between movements, like "casino capitalism". When the funds quickly flow between

13 Theodore Levitt, 1985. "Globalization of Markets" in the May–June 1983 issue of Harvard Business Review.

14 David Held 著，陳淑玲譯，《全球化大轉變（台北：偉伯文化事業出版社，2001 年 1 月）》，頁 2-13。

15 Suzanne Keller，《Sociology（台北：雙葉出版社）》。

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the country to country that will lead to the manipulation funds of Investment Company to create the beautiful earnings and profit by the short-term operation strategy replaced the long-term investment. Moreover, the industrial production investment will be reduced for their long-term strategy. This is the reason why the financial credit problems repeatedly and the financial crisis recurrence time shortened that brings the major trauma for the global economy such as the Lehman Brothers debt crisis of the United States in 2008.

2.2.2 The world division and North-South hemisphere differences

Although the funds are rapidly moving everywhere, they do not make the global benefit. In 1980, the international funds still focus on their three main sections that are North America, EU and East Asia. In 1960 and 1970, the western countries would like to reduce the production cost to invest overseas that indirectly caused third world countries becoming the newly developed countries. In the past, the lower price products from the East Asia and Latin America made the industrial products from Europe and the United States losing their competitiveness and causing

"de-industrialization" and massive unemployment eventually. The enterprise competitiveness of the advanced country is no longer dominated by the low cost, instead of the knowledge and innovation of information technology. All countries began to strengthen the personnel training and development.

2.2.3 Regional trends

Due to the Globalization, the funds movement also caused the regional economic association formed. There are two types of associations. One is formed of the Association by the neighbor countries, such as NAFTA, EU, ASEAN, TPP, APEC, TIFA, ECAP, and CJKFTA. When facing the strong competition between country and

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country, many countries take the neighbor cooperation to strengthen their regional competitiveness. The regional association is cooperated by economic way. Another association refers to area association in the country, such as the California Silicon Valley, and Peking Zhong-Guan-Cun（中關村）, Hsin-Chu Science Park, Taipei Nei-Hu Technology Park and New York Wall Street. In the globalization process, the regional association gathered special properties and special industry capacity that the local government can skip the central government and attract the external investment. Due to the human capital needs increased, it can combine the regional universities and research institutions to strengthen the human capital development and related commodity research which formed a special economic area based on the knowledge and information. Thus, it is the global industry innovation area, global flow, logistics, movement of financial and information flow to become the area of global localization.

The point of globalization is occurred by the period of the "post-industrial society". When the industry development was not the main structure of the economic development anymore, it was replaced by the formation of service industry and mass consumption. The white-collar workers are replacing the blue-collar workers and the knowledge economy becomes the important sources of social productivity, which is the character of so-called "post-industrial society". What are the differences between the

"industrial society" and "post-industrial society"?Bell, a sociologist, stated in 1973 that had five differences including the period occurred, industrial stages, means of production, social levels and productivity （ Tabl-3 The differences between the

"Industrial society" and "Post-industrial society"）.

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Table-3 The differences between the "Industrial society"and "Post-industrial society"

Industrial society Post-industrial society Period occurred 18 century - 1970 1970-present

Industrial stages Industry Service industry

Means of production Machines IT

Social levels Blue-collar workers White-collar workers Productivity Normal education Knoledge econmics

Ref Resources: The organization by myself.

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Section 3、The theory of knowledge, creative economy and human capital flow

Following by the perspective of globalization, the OECD proposed the view of

"Knowledge economy" in 1996. Gross domestic products（GDP） at present of the members of the OECD are over 50% coming from the knowledge-based industries¹⁶.The human resources development will go to the international division of labor and specialization through the knowledge economy happened. The theories of the human resources development and human capital flow are as follows.

2.3.1 Neo-classical Economic Theory¹⁷

Neo-classical Economic Theory is from the economics angle to analyze the migration behaviors. The migration is caused by the supply and demands of global labour imbalances due to the individuls hope to obtain maximize profits through migration. The wage differences between countries is produced human capital flows.

When the benefits obtained are greater than the consumption cost and migration happened.Massey (1993) pointed out that the wages differences will cause the human market heavy distribution continuously to reach the balanced because human resources based on self-consider who will migrate to the high-income areas. The larger wage differences induce the higher human capital flows.

The neo-classical economic theory was encountered the difficulty in the 1990's because the theory is based on the wage-gap as the main reason of migration. It does not explain there is an obvious phenomenon of the wage-gap of the European countries

16 周八俊，迎向新世紀國際經濟一體化（上海：上海人民出版社，1999 年 6 月），頁 182-183。「知識經濟」係指直接建立在知識與信息生產、分配與使用上的經濟，知識為主要生產要素與構成社會經濟發展主體。

17 張靜文（2007），《我國專技移民政策及制度之研究》。國立政治大學行政管理碩士學程，頁 8-9。

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that show the migration only occurred by upper middle levels with more inforamtion and rarely occurred by the low-income levels. Thus, the wage-gap is not the only reasons of human capital flows.

2.3.2 The theory of global division of labour force and international trade

The maximum change of the economic globalization is to promote the world resources to the most propriated configuration. A country is limited by the national resources and market limit regardless how high efficiency of its economic growth. It is the only way to integrat the global resources and market limited by the national resources and market insufficient. The economic globalization caused the phenomenons of the international division, industry transfer, funds and technology flows, and transnational mutual deepened after 1990.

Adam Smith in his book "The Wealth of Nations" stated that the theories of globalization illustrated a country's economic growth is from its productivity, which means maximum increase attributed to the result of the division of skilled labour productivity. Thus, the division of labour and development will raise the workers' professional skills and progress the labour productivity. The productivity also depends on the specialization of labor. Allyn Young (1928) stated the "Young Theory" to solve the question of the division of the labor in the article of the increasing returns and economic progress. This theory stated that increasing return scale depends on the

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