Industrial Cluster Development and its Contribution to Economic Growth in Taiwan - Hsinchu Science and Industrial Park (HSIP)

Abstract

The development of industrial cluster plays a significant role in the growth of national industries, and the industrial cluster development indeed makes a great impact on the progression of national industries, especially in developing countries. Under the fiercely global trends in competition, industrial cluster has been identified as an important strategy to keep the development of regional industries in a sustainable trajectory, and a good implementation of industrial cluster usually reflects on the cluster region carrying within a large number of Small and Medium-Sized Enterprises (SMEs). Through the clustering of businesses and industries, the corresponding geographical proximity, and the promotion of mutual support and learning, businesses and industries located in the cluster region can further acquire the advantages of Economy of Scale and those of Economy of Scope. Meanwhile, the successful experience of Hsinchu Science and Industrial Park (HSIP) has become a good model for many countries to learn the development of Science Park, and the most contribution of HSIP is transforming the labour-intensive industries to talent-intensive industries. Also, it directly promotes the development of high-technology industries in a sustainable trajectory. Most important of all, the success of HSIP created the so-called "Taiwan Economic Miracle" in the later twentieth century, and it led Taiwan to be one of "Four Asian Tigers".