## 3 Results from Patent Data Mining across the Countries
### Total Correlation Matrix of the Patenting Activities among the Countries
This not only implies that the markets for technological products in these two countries are almost identical, but also indicates that the patenting strategies of the high-tech companies are very similar in these two countries. Relatedly, many industrial analysts have claimed that \"if North Korea launches a missile, the largest beneficiary would be TWN because it will receive an economy of scale due to the shifts in orders of technological products from KOR to TWN\". This claim is supported by the patent-based analysis here. This analysis provides evidence that the intrinsic structures of the technology industry are very similar in these two countries. * The second highest correlation number for TWN (0.879) is between it and JPN. This is because a high volume of trade occurs between TWN and JPN, i.e., the high-tech industry in JPN submits a considerable amount of OEM (Original Equipment Manufacturing) orders to TWN for component-making. An extended observation from this point is that the correlation number for (JPN, CHN) is 0.796, which is lower than those for (JPN, KOR), (JPN, TWN), (JPN, USA) and (JPN, EU), despite the fact that CHN has increased its impact in recent years and become one of the most important markets. In other words, the relatively low number could thus be read as indicating either that the technological strengths of these two countries do not overlap so much or that Japan is relatively uninterested in the Chinese market (and/or vice versa), in spite of Japan and China being neighbouring countries. That said, the underlying reasons for the number are outside of the scope of this study. * The third highest correlation number for TWN (0.818) is between it and the USA. A common situation is that companies in the USA also submit OEM orders to manufacturers in TWN, and many of these products are then shipped back to the America or shipped to other countries in Asia. Therefore, the wafer foundries in TWN have become the partners of the R&D companies in the USA, and this co-dependency has increased their technological correlation. With respect to what they have patented in the USA, the USA companies will try to protect their IPs in Taiwan before making an order. Of course, given that economic data indicates that TWN usually has a trade surplus with the USA, and that this is usually due to exports of technology products resulting from mutually beneficial partnerships, the observation of technological correlation between the two countries is common; however, it is worth noting, then, that this finding derived from the cross-national patent databases once again reflects the facts. * Surprisingly, in terms of the STSs, the technological (and also the market) relevance between TWN and CHN is relatively low (0.757) and is only middle ranked (i.e., 5 of 8). This is because although TWN companies addressed the market in CHN, moved many factories over there and applied for a considerable number of patents in CHN during the study period, the opposite did not also occur. Setting aside the possible reasons for it, companies in CHN bypassed the market in TWN and applied for patents in other technological power countries which were deemed more important during the study period. In the table, the (CHN, TWN) pair is ranked the lowest (8 of 8) among all of the (CHN, \") correlation pairs. * Finally, the correlation between the technology industries of CAN and TWN is very low at only 0.495. This is the smallest number in the entire table. The reason for this observation is presumably that the two countries are the least populated countries in the list of technological powers (i.e., there are 37.281 and 23.589 million people in CAN and TWN, respectively). Given the resulting smaller sizes of their domestic markets, patent applications are only necessary when there is technological conflict between companies from the two countries.