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Agglomeration Economies or Selection? An Analysis of Taiwanese Science Parks

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  • Syed Hasan
  • Alessandra Faggian
  • H. Allen Klaiber
  • Ian Sheldon

Abstract

Agglomeration spillovers are a major driver of policy creating science parks across the world. However, agglomeration benefits may be offset by competition arising out of spatial proximity of firms. Analysis of Taiwanese firms’ total factor productivity distribution shows that, depending on location choice, the impact of agglomeration and selection is heterogeneous across firm types. Spatial analysis is applied to evaluate the regional innovation policy of establishing science parks. A sectoral analysis of productivity distributions reveals that there is a positive relationship between technology intensity of the production process and firm productivity levels when firms are located in science parks.

Suggested Citation

  • Syed Hasan & Alessandra Faggian & H. Allen Klaiber & Ian Sheldon, 2018. "Agglomeration Economies or Selection? An Analysis of Taiwanese Science Parks," International Regional Science Review, , vol. 41(3), pages 335-363, May.
    • Handle: RePEc:sae:inrsre:v:41:y:2018:i:3:p:335-363
    DOI: 10.1177/0160017616642822
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    2. Lu Zhang & Renyan Mu & Shuhua Hu & Quan Zhang & Song Wang, 2021. "Impacts of Manufacturing Specialized and Diversified Agglomeration on the Eco-Innovation Efficiency—A Nonlinear Test from Dynamic Perspective," Sustainability, MDPI, vol. 13(7), pages 1-27, March.
    3. Liao, Tailai & Yan, Jingdong & Zhang, Qiuhong, 2024. "The impact of green technology innovation on carbon emission efficiency: The intermediary role of intellectual capital," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 520-532.
    4. Daguo Lv & Lingyu Zhang & Ren Lu & Jingtao Yao, 2022. "Industry characteristics and agglomeration of heterogeneous firms," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 49(1), pages 31-49, March.
    5. Shengjun Zhu & Canfei He & Xinming Xia, 2019. "Geography of productivity: evidence from China’s manufacturing industries," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 62(1), pages 141-168, February.
    6. Chun‐Yu Ho & Yue Sheng, 2022. "Productivity advantage of large cities for creative industries," Papers in Regional Science, Wiley Blackwell, vol. 101(6), pages 1289-1306, December.
    7. Antonio Andrés Bellofatto & Begoña Domínguez & Elyse C. Dwyer, 2023. "Uncovering Urban Advantages: Evidence from Australian Firm‐Level Data," The Economic Record, The Economic Society of Australia, vol. 99(S1), pages 13-34, December.

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