Since mid 90s, the animation industry in Taiwan has been transformed from OEM to OBM. This Research deals with the question about how the animation industry in Taiwan became the former mentioned form. According to the research results, the most effective factor that had formed such phenomenon is the ”international division of labour under Globalization”. The recent animation policies in Taiwan had been supporting the development of OBM animation, However, ”Digital Technologies” and ”cultural proximity” had been little help to the transformation. The difficulty in accessing the distribution sector had been the restriction of the development of local animations.
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