Are new technology-based firms located on science parks really more innovative?. Evidence from Taiwan

Chih Hai Yang, Kazuyuki Motohashi, Jong Rong Chen

Research output: Contribution to journalArticlepeer-review

148 Scopus citations

Abstract

The establishment of science parks is employed as a vital strategy for developing high-tech industries in many countries. Whether new technology-based firms (NTBFs) located within science parks are, in comparison to their counterparts located outside of science parks, more efficient in terms of R&D investment remains less explored. The purpose of this paper is to compare the R&D productivity of NTBFs located within and outside of science parks by measuring the elasticity of R&D with respect to output. Using panel data for NTBFs located within and outside the Hsinchu Science Industrial Park (HSIP) in Taiwan, our empirical findings show that the elasticity of R&D with respect to outputs of NTBFs located within HSIP is significantly higher than that of other firms. These findings further reveal that NTBFs located in the science park invest more efficiently. Our results also indicate a slight advantage in R&D for firms in the science park, arising from the fact that the science park offers a clustering effect and establishes links among firms and research institutions.

Original languageEnglish
Pages (from-to)77-85
Number of pages9
JournalResearch Policy
Volume38
Issue number1
DOIs
StatePublished - Feb 2009

Keywords

  • Productivity
  • R&D
  • Science park

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