Taipei, Feb. 21 (CNA) Taiwan and Japan's flat-panel industries will gain a competitive edge if they decide to work together, an executive at Nikkei Business Publications Inc. (Nikkei BP) said Tuesday.

The two sides will complement each other because Taiwan's flat-panel display (FPD) makers are production-based while Japan's are focused on research and development, said Tetsushi Hayashi, head of Electronics/Mechanical Group at Nikkei BP, at the 2012 FPD International Taiwan exposition.

Hayashi said that while Taiwan trails its biggest competitor South Korea in terms of overall FPD production, Taiwan's 50 percent global market share in the industry has outpaced South Korea, which Japan sees as a desirable factor.

He suggested that Taiwan and Japan collaborate on FPD supply-chains, for example.

In addition, Taiwan can benefit from the R&D achievements by Japanese FPD material suppliers in the area of transparent conductive oxide thin films, he said.

Meanwhile, Japan can take advantage of Taiwan's superior manufacturing capability and range of electronic manufacturing services -- from design and manufacturing to return and repair, he said. (By Pan Chih-yi and Ann Chen)