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Estimation of the output value of Taiwan's advertising industry

Taiwan's advertising industry, just like other cultural creative industries, has hit a bottleneck during its growth. This is a common phenomenon encountered by emerging industries during their development stage. Hence, there is a need for public policy and funding from the public sectors to support and nurture them. However, as the output value of an industry is usually declared by the business operators in that industry, very often these operators would simply report their business turnover as product value, whereby distorting the actual output value by double counting and over-estimation. As a result, this would affect the effectiveness of the public policies instituted by the public sectors and hence the allocation of financial resources administered by them. We suggest that public sectors adopt the method used by Fritz Machlup to estimate knowledge generation in the United States. This would be used by all operators in the advertising industry to declare their expenditure. Regardless of whether they are manufacturers or service providers, the expenses declared would include wages, rental, interest, and water and electricity bills. Following that, the method of Michael Rogers Rubin, Mary Taylor Huber, and Elizabeth Lloyd Taylor would be used during the next national Industry and Commerce Census to set up a project in which an industry Input-Output Table could be drawn up for the advertising industry and other cultural creative industries based on the census. This would help to identify the industry with the greatest front and back chain effect so that the public sectors could target their support programmes for the advertising industry with a better focus.