Taiwan's executives, including Robert Tsao, chairman of United Microelectronics, may seem relaxed when they meet for cocktails at the Taipei World Trade Center Club, but the executives are aware that China's aggressive push into technology could to lead to displacement of Taiwan as a global technology center. Taiwan's executives are facing another significant change as China, which is just across the Taiwan Strait, hires many engineers who are anxious for new opportunities. Nicky Lu, formerly an IBM researcher and now CEO of Etron Technology, a memory designer, says Taiwan needs more design houses that add value. Today Taiwan executives spend most of their time looking to the future. Among them is Morris Chang, chairman of TSMC, who says there will be fewer mainland companies in 10 years, but some will be very large and the overall revenue of design companies will become very significant. Innovation will be required and has become the national IT buzzword, having been spliced into new terms such as innovalue. Among Taiwan's earlier innovations have been the creation of the IC foundry concept, a successful initiative that was bolstered by the Taiwanese penchant for entrepreneurship and willingness to do the hard, hard, work. Research and development (R&D) is becoming a core value of the new Taiwan, and the government will dedicate $80 billion as part of the Challenge 2008 national development plan. The plans purpose is to promote technical upgrades across many Taiwan industries and infrastructures, including R&D centers, high-value industrial development, and Internet-based industrial collaboration.