dc.description.abstract | The establishment of science parks is a vital strategy policy for developing high-tech industries in many countries. Hsinchu Science Industrial Park(HSIP) established in 1980, successfully leading the transformation of Taiwan industrial structure from labor-intensive to capital intensive industries, and under reference to the Silicon Valley model, through the cooperation with ITRI and university research, it attracts lots of electronics firms to set up factories around HSIP, forming the high-tech industrial cluster.
Different from the previous literature, the purpose of this paper is to analysis the phenomenon of firms geographic concentration, and compare the productivity of electronics firms located within and outside the HSIP in Taiwan. The data was drawn from the data bank of Taiwan Economic Journal (TEJ) for the period from 2007 to 2012, as well as the firm latitude and longitude data of firms location . Additionally, the administrators of park require that ?rms located in the park must invest suf?ciently in R&D expenditure Therefore, sampling bias must be taken into consideration in order to avoid selection bias. This study use Heckman selection model to control the selection bias, and use fixed effect model to analysis the impact of R&D and spatial spillover effect on firms productivity.
The empirical ?ndings show that the elasticity of R&D with respect to outputs of electronics on-park firms is signi?cantly higher than off-park firms. The full model under consideration spatial spillover effects shows that the spillover effect not only has a positive impact on productivity, but also enhance the R&D of on-park firms. Therefore, on-park ?rms are expected to show better performance because of the geographical proximity, it’s also indicate a slight advantage in R&D for on-park ?rms, arising from the fact that the science park offers a clustering effect and establishes links among ?rms and research institutions.
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