498. First, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu would like to thank the United States of America, Japan and the Swiss for organizing the side event yesterday, the discussion was very informative and also shows how IP and finance could assist start-ups and SMEs. Returning to today's agenda item we would like to thank Switzerland for preparing the paper. We are happy to co-sponsor the paper. According to the Global Competitiveness Report 2019 compiled by the World Economic Forum, our jurisdiction ranked 4th in the world in terms of innovation capability. While the innovative energy of start-ups is undoubtedly the driving force behind a nation's economic prosperity, start-ups are often faced with a shortage of capital. Technology innovation requires long-term capital investment; therefore, our government is working to assist start-ups in utilizing their intellectual property rights to obtain funds and address their capital needs at different stages of business operations.
499. The main factors that hinder the development of our IP financing market are the lack of a vibrant IP trading market and a credible authority that can undertake the valuation and disposition of IP assets for banks. In order to help start-ups secure financing with their IP assets, the Industrial Development Bureau of the Ministry of Economic Affairs has been actively promoting the registration and management of intangible asset appraisers and institutions, as well as facilitating intangible asset financing.
500. The government facilitated a tripartite cooperation between 26 financial institutions, Small and Medium Enterprise Credit Guarantee Fund, and Industrial Technology Research Institute in 2019 to increase the guarantee coverage of credit guarantee funds so as to lower financial risks that impact financial institutions, which has so far led to many successful cases of intangible asset financing, covering key industries such as biotechnology, medicine, green energy, smart machinery, and information technology.
501. Ways to effectively assist start-ups in obtaining funds through IP financing to maintain business operations and continuous R&D are matters that we must give thought to. We welcome Members to share their measures and experiences related to said matters.
