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

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  • Yang, Chih-Hai
  • Motohashi, Kazuyuki
  • Chen, Jong-Rong

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.

Suggested Citation

  • Yang, Chih-Hai & Motohashi, Kazuyuki & Chen, Jong-Rong, 2009. "Are new technology-based firms located on science parks really more innovative?: Evidence from Taiwan," Research Policy, Elsevier, vol. 38(1), pages 77-85, February.
  • Handle: RePEc:eee:respol:v:38:y:2009:i:1:p:77-85
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    Cited by:

    1. Albahari, Alberto & Pérez-Canto, Salvador & Barge-Gil, Andrés & Modrego, Aurelia, 2017. "Technology Parks versus Science Parks: Does the university make the difference?," Technological Forecasting and Social Change, Elsevier, vol. 116(C), pages 13-28.
    2. repec:spr:scient:v:86:y:2011:i:1:d:10.1007_s11192-010-0247-z is not listed on IDEAS
    3. Ángela Vásquez-Urriago & Andrés Barge-Gil & Aurelia Rico & Evita Paraskevopoulou, 2014. "The impact of science and technology parks on firms’ product innovation: empirical evidence from Spain," Journal of Evolutionary Economics, Springer, vol. 24(4), pages 835-873, September.
    4. Shahid Yusuf & Kaoru Nabeshima, 2009. "Growth through Innovation : An Industrial Strategy for Shanghai," World Bank Other Operational Studies 18613, The World Bank.
    5. Nishimura, Junichi & Okamuro, Hiroyuki, 2011. "Subsidy and networking: The effects of direct and indirect support programs of the cluster policy," Research Policy, Elsevier, vol. 40(5), pages 714-727, June.
    6. Christoph Grimpe & Roberto Patuelli, 2011. "Regional knowledge production in nanomaterials: a spatial filtering approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(3), pages 519-541, June.
    7. Yang, Chih-Hai & Lin, Hui-Lin & Li, Hsiao-Yun, 2013. "Influences of production and R&D agglomeration on productivity: Evidence from Chinese electronics firms," China Economic Review, Elsevier, vol. 27(C), pages 162-178.
    8. Albahari, Alberto & Pérez-Canto, Salvador & Landoni, Paolo, 2010. "Science and Technology Parks impacts on tenant organisations: a review of literature," MPRA Paper 41914, University Library of Munich, Germany.
    9. Autant-Bernard, Corinne & Guironnet, Jean-Pascal & Massard, Nadine, 2011. "Agglomeration and social return to R&D: Evidence from French plant productivity changes," International Journal of Production Economics, Elsevier, vol. 132(1), pages 34-42, July.
    10. Schwartz, Michael, 2010. "A Control Group Study of Incubators’ Impact to Promote Firm Survival," IWH Discussion Papers 11/2010, Halle Institute for Economic Research (IWH).
    11. Reinhilde Veugelers & Helena Schweiger, 2016. "Innovation policies in transition countries: one size fits all?," Economic Change and Restructuring, Springer, vol. 49(2), pages 241-267, August.
    12. Yagüe-Perales, R.M. & March-Chorda, I., 2013. "Performance analysis of NTBFs in knowledge-intensive industries: Evidence from the human health sector," Journal of Business Research, Elsevier, vol. 66(10), pages 1983-1989.
    13. Albahari, Alberto & Barge-Gil, Andrés & Pérez-Canto, Salvador & Modrego-Rico, Aurelia, 2013. "The Influence of Science and Technology Park Characteristics on Firms’ Innovation Results," MPRA Paper 48829, University Library of Munich, Germany.
    14. Marina van Geenhuizen & Danny P. Soetanto & Victor Scholten, 2012. "Science Parks: Changing Roles and Changing Approaches in their Evaluation," Chapters,in: Creative Knowledge Cities, chapter 6 Edward Elgar Publishing.
    15. Anna Wójcik-Karpacz & Szymon Mazurkiewicz, 2015. "Practices of Technology Parks Supporting Innovative Activities: Evidence from Poland," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 13(4 (Winter), pages 331-354.
    16. Michael Schwartz, 2013. "A control group study of incubators’ impact to promote firm survival," The Journal of Technology Transfer, Springer, vol. 38(3), pages 302-331, June.
    17. Isabel Díez-Vial & Marta Fernández-Olmos, 2015. "Knowledge spillovers in science and technology parks: how can firms benefit most?," The Journal of Technology Transfer, Springer, vol. 40(1), pages 70-84, February.
    18. Link, Albert N. & Scott, John T., 2011. "Research, Science, and Technology Parks: Vehicles for Technology Transfer," UNCG Economics Working Papers 11-22, University of North Carolina at Greensboro, Department of Economics.
    19. Dina Cunha & Sandra T. Silva & Aurora A.C. Teixeira, 2013. "Are Academic Spin-Offs necessarily New Technology-Based firms?," FEP Working Papers 482, Universidade do Porto, Faculdade de Economia do Porto.
    20. Okamuro, Hiroyuki & Nishimura, Junichi, 2011. "Management of Cluster Policies: Case Studies of Japanese, German, and French Bio-clusters," CEI Working Paper Series 2011-7, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    21. Liu, Ting-Kun & Chen, Jong-Rong & Huang, Cliff J. & Yang, Chih-Hai, 2014. "Revisiting the productivity paradox: A semiparametric smooth coefficient approach based on evidence from Taiwan," Technological Forecasting and Social Change, Elsevier, vol. 81(C), pages 300-308.
    22. Claire Nauwelaers & Alexander Kleibrink & Katerina Stancova, 2014. "The Role of Science Parks in Smart Specialisation Strategies," JRC Working Papers JRC90719, Joint Research Centre (Seville site).
    23. Fidelis A. Ayatse & Nguwasen Kwahar & Akuraun S. Iyortsuun, 2017. "Business incubation process and firm performance: an empirical review," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 7(1), pages 1-17, December.

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    Keywords

    Science park R&D Productivity;

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