Technology-based regional development strategies and the emergence of technological communities: a case study of HSIP, Taiwan

Less-developed countries always lack well-developed industrial clusters, and nurturing such clusters is essential to their economic development, especially for technology-based industries. Consequently, location specific cluster formation should be promoted, including efficient technological infrastructure, mature innovation-production interaction, and competitive advantages. These factors have a positive accumulative effect on the selected district, and firms in the district compete for these resources through spatial proximity, a focus on certain technologies and technological infrastructure. To establish mature clusters, the Taiwanese government has aggressively developed Science Parks during the past two decades. This study applies this concept to analyze the interaction between agents and the formation of innovation clusters in the Hsinchu district, the location of the first Science Park in Taiwan.