Role of Interaction between Technological Communities and Industrial Clustering in Innovative Activity : The Case of Hsinchu District, Taiwan

Economic development requires knowledge in today'sknowledge -based economy. The achievement of economic development in one areadepends directly on the efficiency of the attainment, accumulation andapplication of knowledge and information. These processes rely heavily on theinvolvement of human resources with technological knowledge and technicalskills. Correspondingly, knowledge creation ability and the efficiency of knowledgecreation and application determine industrial clustering and economicsustainability. Current surveys of industrial clusters in Taiwan haveascertained that clusters of traditional industries do not necessarily lead toinnovation although, empirically, an industrial cluster is a prerequisite forinnovative activity. Recent studies have addressed the effects of the spatial proximity amongfirms and advanced research institutes in the Hsinchu area. According to theirresults, industrial clustering positively influences innovation bytechnological companies. Based on available results, this study considers howinteraction between technological communities and industrial clusteringinfluence the innovative activities in a sample area. Additionally, this studyanalyses social networking within the technological community and therelationship to industrial clustering in the Hsinchu area. Results of thisstudy provide a valuable reference for industrial district planning andmanagement.(publication abstract)