Interaction among High-tech Talent and its Impact on Innovation Performance: A Comparison of Taiwanese Science Parks at Different Stages of Development

Abstract

Numerous studies have studied how knowledge spillovers and various other factors influence industrial clusters in terms of geographical proximity. Related studies have generally confirmed significant positive correlations between firm innovative activities and factors such as spatial proximity and degree of industrial clustering. This study elucidates on an individual level, based on the relationship between proximity dimension and innovative activity, the interactive relationships between the mobility and interaction of high-tech talent and innovation performance. Survey results indicate that the spatial proximity of firms clustering within the Hsinchu and Tainan Science-based Industrial Park increases the interaction among high-tech personnel and the expansion of their professional networks, thus promoting innovation. Gradually organizational and social proximity evolve from physical proximity within high-tech districts via the evolution of industrial networks and interactions among high-tech talent. Additionally survey results demonstrate the value of mobility and informal relationships involving high-tech talent, as well as the effect of these relationships on innovation performance during the various stages of science park development. However, how to avoid lock-in in the future development of high-tech districts remains a critical issue. The results of this investigation provide a useful reference for planning and managing industrial districts.

Acknowledgements

The author would like to thank the National Science Council of Taiwan for financially supporting this research under Contract No. NSC 93-2211-E-216-007 and NSC 94-2415-H-216-001. Professor Shin-Kun Peng, Chien-Yuan Lin and Cheng-Min Feng are also appreciated for their valuable comments. The contribution of two anonymous referees is also acknowledged.

Notes

1. Operationally, the technological infrastructure is defined in terms of four factors: agglomerations and networks of firms in related industries; concentrations of university R&D; concentrations of industrial R&D; and networks of business-service firms (Feldman, 1994, p. 52).

2. In Asian developing countries, strategic investments, especially by central government, are designed to create planned technology districts to provide regional engines of growth (Lin, 1997).

3. Informal channels consist of personal contacts with researchers and personnel in related industries or academic/research institutes, sharing equipment and facilities, researching related professional literature, and private social activities such as book clubs or participation in academic seminars and other discussion activities. Moreover, formal channels include firms' joint investments and participation in R&D projects, cooperative research projects involving firms and academic or research institutes, working with professional consultants, and so on.

4. As of 2001 HSIP had been established for exactly two decades, while TSIP had been established for just one decade as of 2004. The surveying time thus was varied to account for the different stages of science park development, to better identify the value of informal relationships for high-tech talent and the influence of these relationships on firm performance.

5. ITRI began in 1973 and is a non-profit R&D organization. The main functions of ITRI are as follows: to perform applied research and provide technical services to accelerate industrial development of Taiwan; to develop key, compatible, forward-looking technologies to meet industrial needs and strengthen industrial competitiveness; to disseminate research results to industry in a timely and appropriate manner, in accordance with the principles of fairness and openness; to foster the technological development of small and medium-sized businesses, and cultivating industrial technology human resources for national benefit. ITRI was established from three laboratories donated by the Ministry of Economic Affairs: Union Industrial Research Laboratories, Mining Research & Service Organization, and Metal Industrial Research Institute. An ITRI spin-off, Taiwan Semiconductor Manufacturing Company Ltd (TSMC) was established in 1987. TSMC became the first 6-inch wafer fabricator in Taiwan. Moreover, Taiwan Mask Corporation (TMC) was established as an ITRI spin-off in 1988. TMC established the first mask fabricator in Taiwan. Once a small organization with three government-donated laboratories, ITRI now features seven laboratories and four centres. The southern branch of ITRI began first-phase operations in 2002.

6. A total of 415 observations are included in the analysis, namely 243 for HSIP and 172 for TSIP. The employees surveyed were separately from 51 firms. Thus, employees working at the same company were assumed to have the same innovation performance.

7. Companies primarily form international coalitions, while establishing horizontal collaboration or vertical integration relationships with local companies, thus forming both competitive and collaborative interactions. Such interactions establish excellent competitive advantages, including incubation, R&D, and production functions, for companies located in and around HSIP (Hu et al., 2005a, p. 376).