Taylor told the Watford Observer: "What is important at the club, and always has been for a long time, is the youth policy. What are we producing and what can we get in?
"It is even harder nowadays to get the youngsters coming to the club because the big boys are taking them off you.
"But at the moment going into the last eight of the FA Youth Cup, playing at home to Chelsea, any supporter who comes there will have some idea of what we are about, because it has to be that way.
"If we are going to put our money somewhere, it has to be on building the club. So the whole thing of the Academy at Harefield, it is very important for this club that we can produce our own players."