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Project Title

Driving Regional Industrial Design Innovation through AI Technology to Enhance MSMEs' Global Market Competitiveness

Project Year

2025

Project Number

PPSTI_109_2025A

Project Session

Session 1

Project Type

Standard

Project Status

Project in Implementation
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Project No.

PPSTI_109_2025A

Project Title

*
Driving Regional Industrial Design Innovation through AI Technology to Enhance MSMEs' Global Market Competitiveness

Project Status

Project in Implementation

Fund Account

*
APEC Support Fund

Sub-fund

ASF: Micro, Small and Medium Enterprises (MSME)

Project Year

2025

Project Session

*
Session 1

APEC Funding

120,000

Co-funding Amount

35,000

Total Project Value

155,000

Sponsoring Forum

*
APEC Policy Partnership on Science, Technology and Innovation (PPSTI)

Topics

Micro, Small and Medium Enterprises

Committee

SOM Steering Committee on Economic and Technical Cooperation (SCE)

Other Fora Involved

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Chinese Taipei

Co-Sponsoring Economies

Chile; Indonesia; Korea; Malaysia; Peru; Philippines; Thailand; Viet Nam

Expected Start Date

01/01/2026

Expected Completion Date

31/12/2026

Project Proponent Name 1

Eason Wang

Job Title 1

Deputy Director

Organization 1

TDRI

Telephone 1

+886227458199

Email 1

eason_wang@tdri.org.tw

Project Proponent Name 2

Jessica Guo

Job Title 2

Researcher

Organization 2

TDRI

Telephone 2

+886(2)27 458199

Email 2

jessica_guo@tdri.org.tw

Declaration

Eason Wang

Project Summary

MSMEs in the Asia-Pacific region comprise over 98% of all enterprises and contribute 40–60% of GDP(1), driving growth through employment and trade. However, despite AI’s critical role in enhancing competitiveness and integrating into global value chains, many MSMEs still face challenges in its adoption.

As industries strive towards sustainable economic growth, numerous enterprises encounter barriers to accessing the necessary technological resources. This project showcases AI-driven and digital solutions to empower MSMEs, freelancers, and product designers in the APEC region. By leveraging AI/smart digital tools, creators can enhance product development efficiency and design processes, reduce costs, and boost market competitiveness.

In 2026, the project will host an APEC seminar on design, creativity, and AI-driven innovation, with APEC representatives, policymakers, and experts from the design/creative industries. The seminar facilitates knowledge exchange, supports MSME digital transformation, and promotes growth and technological advancement across the APEC region.


(1)Embracing 4.0 Industrial Revolution in Boosting Economic Performance of Export- oriented SMEs, APEC Small and Medium enterprises Working Group (July, 2021)

Relevance

Region

The Digital Realty report(2) shows that over 56% of enterprises lack the necessary digital infrastructure, while IDC research(3) reports that only 8% of enterprises can effectively integrate AI technology as a core competence . This uneven regional development, combined with financial constraints, inadequate infrastructure and a lack of technical talent, is impeding the digital transformation of MSMEs and undermining the competitiveness of the overall region in the global market.

Currently, digital design platforms typically require substantial computational resources and specialized technical expertise, which presents significant challenges for many small and medium-sized enterprises. Although traditional design software is widely available, it falls short in processing complex market data and interpreting user preferences—limitations that adversely affect design efficiency and stifle innovation. Moreover, many existing tools lack the capacity to integrate emerging technologies such as AI and machine learning. AI is increasingly recognized as a transformative force in industrial design, offering advanced functionalities in market analysis, design optimization, and user preference prediction. As a result, AI-driven design platforms have evolved into more accessible and practical solutions, empowering APEC MSMEs to compete more effectively on the global stage.


(2) AI adoption accelerates across Asia Pacific, strategic data management remains key: New Digital Realty study, Digital Realty (Nov, 2024)

(3) Asia/Pacific AI Maturity Study 2024: Australia. Intel., IDC. (May, 2024)


Eligibility and Fund Priorities

1.Enhance Innovation and Market Competitiveness of MSMEs

  1. Improve the efficiency and quality of user research by using AI technology for rapid generation, significantly reducing data organization and analysis time—expected to shorten the research process by over 50%.
  2. Integrate over 100,000 global product data points to provide big data analysis results, thereby improving product development and market research efficiency and accuracy.
  3. Shorten product development cycles, reduce design costs, and increase market success rates. Accelerate early-stage product development research, estimated to be reduced from 12 months to 8–9 months.

2.Technical Support

(1)Provide technical assistance for AI tools to APEC developing economies. (2)Offer consultation channels and practical support.

(3)Supply customized modules to help develop industry-specific tools. 3.Technology and Knowledge Sharing

(1)Enhance the digital transformation capabilities of MSMEs. (2)Enhance competitive advantages through AI-assisted design.

(3)Promote innovative ideas and support design decision-making by evaluating and driving strategic innovation through scenario simulation.


Capacity Building

The project aims to hold a seminar that will serve as a platform for APEC economies to share comprehensive technical introductions to AI-driven design innovation, alongside success cases demonstrating its transformative applications. This seminar is designed to inspire MSMEs to drive innovation through the adoption of practical AI design solutions. Specifically, it intends to highlight successful implementations of AI design platforms in Chinese Taipei, showcasing how these initiatives have led to significant advancements in product design. Through presenting these case studies, its goal is to share valuable insights and experiences, introducing relevant technological strategies to other economies to facilitate their smooth transition towards AI design processes. This endeavor aims to enhance product design efficiency by leveraging AI technology's unparalleled capabilities to offer deeper market insights, faster design iterations, and more reliable product outcomes compared to traditional design approaches.

AI-assisted tools that integrate market analysis and future scenario exploration will accelerate product development and optimize design strategies, addressing challenges such as limited funding, inadequate infrastructure, and talent shortages. The project will support MSMEs across APEC economies in enhancing their knowledge of AI-driven design innovation. By facilitating information exchange and collaboration among businesses, we anticipate bolstering the competitiveness of MSMEs within developing APEC economies while contributing to their sustainable growth and integration into the global economy.

Objectives

This project aims to establish AI-driven resilient design solutions that enhance MSMEs’ product development efficiency by about 30% through big data analytics. An APEC seminar will invite industry, government, academia, and research stakeholders to share AI application experiences, focusing on market trends and consumer insights. Compared with traditional methods, AI digital tools better integrate human needs and economic considerations, supporting future scenarios exploration and design formulation. The project will promote innovative technology adoption in the APEC region by sharing knowledge and best practices on automated generation and optimization in the design processes, helping MSMEs improve efficiency, reduce costs, and enhance digital transformation capabilities.


Alignment

APEC

This project directly addresses APEC 2025’s “Building a Sustainable Future” priority through digital innovation and inclusive growth. The integration of AI-driven design technology not only strengthens digital infrastructure but also drives the transformation of MSMEs, enhancing their design capabilities and global market competitiveness.

Additionally, the initiative aligns with the “Digital Infrastructure and Innovation” goal set forth in the APEC Putrajaya Vision 2040 by ensuring the seamless integration of design workflows and market intelligence, thereby fostering the development of more inclusive and innovative products. On the "Innovate" front, the project addresses key areas highlighted in APEC 2025, such as artificial intelligence, digital transformation, and digital culture and creativity. Through the development and promotion of AI and smart digital tools, MSMEs can significantly enhance product development efficiency and design processes.

Moreover, the enhanced capabilities enabled by AI technology facilitate real-time market analysis and closer collaboration among designers, manufacturers, and consumers across APEC economies-accelerating digital transformation and narrowing the digital divide. By boosting design efficiency and market responsiveness, the progect not only promotes sustainable growth but also advocates for structural reforms and sound economic policies.


Forum

This project aligns with PPSTI Subgroup C's priority of "Enhancing Regional Science and Technology Connectivity" by promoting AI-driven design innovation and fostering cross-regional technological collaboration. It also supports the following PPSTI 2025 priorities:

1) Connectivity and Inclusive Growth: Leverage AI technology to promote inclusive growth by supporting digital talent development across economies, creating new technical roles in the design sector, and encouraging everyone's, including women’s participation in digital innovation. This approach will provide more employment opportunities, accelerate talent exchange and technology transfer, and strengthen regional innovation networks' resilience.


2) Innovation and Market Orientation: Empower young entrepreneurs and innovators to adopt smart design processes and utilize AI-assisted design tools to enhance product development efficiency and market adaptability. This strategy will accelerate the commercialization of innovative technologies, ensure process transparency, and boost the innovative potential of regional industries within the global valuechain.


3) Regional Prosperity and Sustainable Development: Connect professionals across economies to develop sustainable and systematic design methodologies. By leveraging AI-driven design innovation, the project will assist businesses in building agile operational frameworks capable of responding to market changes, thereby accelerating the region’stransition to a sustainability-driven economicgrowth model.

Beneficiaries and Outputs

Output


1) Pre-Event Research: AI-Driven Design Innovation Survey

Conducting a Pre-event Research on AI Integration and Digital Transformation in Design Fields for MSMEs in APEC Economies


Purpose:


To identify the needs and solutions for enhancing AI capabilities in design and advancing regional digital transformation, this Pre-event Research will be conducted prior to the seminar. It aims to explore how AI can strengthen MSMEs' competitiveness in the global market and to provide a key reference for agenda planning, discussion topics, speaker invitations, and panel formation.


Research Topics & Scope: The Pre-event Research will be conducted via an online questionnaire, including two parts:

·Part 1: Current status, needs, and application development of AI in design fields within APEC economies.

·Part 2: Recommendations, anticipated topics, and participant engagement for the seminar.


Target Groups: MSMEs, industry associations, research institutions, government departments, policymakers, and relevant technology developers interested in AI technology applications in design across APEC economies.


Outcomes: The pre-event research report will be at least 10 pages in length and will serve as an important chapter in the final report, including a summary of key findings, result analysis, implementable recommendations, and conclusions.


2) APEC Seminar

Two full-day APEC seminars are planned to be held in Taipei in September 2026.


Purpose: These seminars aim to establish AI-driven resilient design solutions that enhance the MSMEs’ product development efficiency. This project will hold a fully in-person seminar. It will cover developing trends, current status, and applications of AI technology adoption in design fields across APEC economies. The event will share knowledge and best practices on automated generation and optimization in the design processes to help MSMEs improve efficiency, reduce costs, and advance digital transformation capabilities.


  1. Participants: Members from APEC economies who are interested in AI- driven design innovation, including technical developers, design and creative professionals, policymakers and government departments, MSMEs and research institutions and universities are welcome.
  2. Tentative agenda Day1

-Session A (1.5 hours):Keynote Speech-Developing Trends of AI-driven Design Innovation


-Session B (1.5 hours):Keynote Speech- Applications of AI-driven Design Solutions


-Session C (2 hours):Panel Discussion-Design and Technology: Research and Practice Driving Innovation


-Session D (2 hours): Panel Discussion-The Complementary Future of Design and Generative AI


  1. Day2

-Session E (2.5 hours):Workshop-AI and Design Thinking Application


-Session F (2.5 hours):Workshop-Future Scenario with Design and AI tools


Site Visit (2 hours): Visit to Taipei Design Creative Hubs and Local International Creative Design Organizations.


3) Final Report

The Final Report will be a minimum of 27 pages in length (excluding appendix) and will contain 2 main parts: the project achievements and policy recommendations.


The Final report will be submitted by 1 November 2026. The report will focus on the conclusion of the APEC seminar held in September 2026. It will cover the current situation, trends, and applications related to promoting AI-driven design innovation and fostering cross-regional technological collaboration, as well as the results and analysis of Pre-event Research and the achievements of the seminar. The Final report will be published as APEC Publication.

  1. Chapter 1: Current Situation and Challenges of Co-relating Future Urban Plans by MSMEs, Governments, and Industries (5pages)
  2. Chapter 2: Research Findings and Analysis on AI-Driven Future Design Innovation (5 pages)
  3. Chapter 3: Selected APEC Cases of AI Driven Design Innovation (5 pages)
  4. Chapter 4: Policy Recommendations in Response to AI Trends: Ethics, Intellectual Property, and Cybersecurity Regulations (10 pages)
  5. Chapter 5: Conclusion (2 pages)


Outcome

By showcasing applications of AI-driven design innovation and organizing a seminar to facilitate experience sharing and feedback, this project will offer APEC economies opportunities for mutual learning. The anticipated outcomes are:


Enhanced Knowledge of AI in Design: Participants will deepen their understanding of how AI technology can strengthen design fields. Demonstrating practical applications of AI design platforms will illustrate significant advancements, enabling designers and MSMEs to expand AI's scope in design and bolster their innovation capabilities.


Improved Understanding of AI Implementation through Experience Exchange: Through the seminar, APEC economies will receive training and exchange experiences to better understand diverse implementation scenarios for AI-driven design solutions. AI design tools and best practices, tailored to the specific needs of different economies, will be shared. Applying these tools will help designers and MSMEs optimize product development, reduce costs, and increase market success rates for their products.


Policy Recommendations for AI-Driven Design Advancement: The project will provide policy recommendations for developing and applying AI-driven design innovation. These recommendations will aim to promote AI-empowered design fields and enhance the digital transformation capabilities of MSMEs.


Beneficiaries

Primary Beneficiaries:


1) Technical Developers: Will share the latestAI-driven design tool developments and application cases, demonstrate practical big data analysis for consumer insights, and showcase successful solutions. This exchange will highlight technological innovation and AI integration in design, supporting the digital transformation of related industries.


2) Design and Creative Professionals: Will share strategies for integrating designtools and AI-driven solutions into industry practices, thereby driving business innovation and market expansion. This will foster cross-regional collaboration and enhance the competitiveness of creative industries within APEC economies.


3) Policy makers: Will gain insights into digital transformation policy frameworks and support initiatives. They will discuss policy measures for AI and the cultural/creative industries, and explore mechanisms for cross-regional cooperation and resource integration. This will help align policies, promote innovation, and facilitate sustainable development in the digital era.

Participants

  1. MSMEs: Will learn to leverage AI tools for product development, user and market research, and bridging the digital transformation gap. Adopting AI-driven solutions will enhance their innovation capabilities and market competitiveness.
  2. Research Institutions and Universities: Will gain insights into industry case studies and AI development trends within the cultural and creative sectors, facilitating academic-industry collaboration and talent cultivation.


2) Secondary beneficiaries: New Product Development and market research Sections:

These sections will benefit from improved efficiency in product development and a

broader range of market research scenarios, supporting innovation and accelerating the commercialization of new products.

Dissemination

The final report will be published as an APEC publication and be disseminated through the APEC website.

The target audience of the publication will be PPSTImember economies, policy makers, private sectors and government officials in the field of AI-driven design innovation.

Gender

Please see Project Proposal in Supporting Documents folder.

Work Plan

Please see Project Proposal in Supporting Documents folder.

Risks

Please see Project Proposal in Supporting Documents folder.

Monitoring and Evaluation

Please see Project Proposal in Supporting Documents folder.

Linkages

This project focuses on the application and promotion of data integration and analysis using AI, which is highly relevant to the Digital Economy Steering Group’s (DESG) key emphasis on promoting the adoption of innovative technologies and services.


Moreover, the project aims to enhance innovation and market competitiveness of APEC MSMEs, which links to the Small and Medium Enterprises Working Group (SMEWG). Therefore, we will work closely with DESG and SMEWG through expert consultations and information sharing. During the implementation phase, we will invite them to participate in preliminary research on the current state of AI applications in the Asia-Pacific region and request that they recommend speakers and participants for our APEC seminar, with the aim of fostering more in-depth discussions. In addition, we will also seek their suggestions for the final report to ensure its quality and reliability.

Sustainability

The development and application of AI design tools will continue to be optimized and upgraded after APEC funding is completed, in order to further support MSMEs' innovation capacity and enhance their global market competitiveness.


After project completion, the project overseer and team will continue to follow up on the action items identified during the seminar and workshops, fostering ongoing connections and collaboration among policy makers, government officials, and R&D communities.

Direct Labour

Please see Project Proposal in Supporting Documents folder.

Are there any supporting document attached?

Yes
Project No.
Project Title
Project Status
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Project Year
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Project Proponent Name 1
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Organization 1
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Declaration
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Gender
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Linkages
Sustainability
Direct Labour
Are there any supporting document attached?
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