Knowledge Spillovers and High-technology Clustering: Evidence from Taiwan's Hsinchu Science-Based Industrial Park

Knowledge spillovers of high-technology industries are alleged to be important determinants of industrial clustering. Dynamic production modeling is applied to measure the sectoral and spatial spillover effects to study the implications of various types of knowledge spillovers on high-technology industry clustering in Taiwan's Hsinchu Science-based Industrial Park (HSIP). The analysis is performed using the Taiwanese government's industrial census of technological activities at the micro level with 2340 plants for the period 1986-1995. We find substantive sectoral and spatial knowledge spillover effects, which are considered to be major motivating forces for regional concentration patterns of Taiwan's high-technology industries. (JEL "L10", "O30") Copyright 2005 Western Economic Association International.