2016
DOI: 10.1177/0160017616642822
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Agglomeration Economies or Selection? An Analysis of Taiwanese Science Parks

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 pro… Show more

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Cited by 11 publications
(4 citation statements)
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“…Some researches indicate that massive infrastructure development, particularly transportation infrastructures, lead to increase the economic concentration (Ding, 2013;Turguttopbas, 2016), this is due to the decline of transport cost of firm and investments. In addition, intensive technology development also has a positive relationship to the economic concentration due to increased firm productivity (Hasan, Faggian, Klaiber, & Sheldon, 2016). In contrast, (Bertinelli & Strobl, 2007) states that economic concentrations impact on economic growth, which in turn, the economic will more concentrated.…”
Section: Geographical Economic Concentration Analysismentioning
confidence: 99%
“…Some researches indicate that massive infrastructure development, particularly transportation infrastructures, lead to increase the economic concentration (Ding, 2013;Turguttopbas, 2016), this is due to the decline of transport cost of firm and investments. In addition, intensive technology development also has a positive relationship to the economic concentration due to increased firm productivity (Hasan, Faggian, Klaiber, & Sheldon, 2016). In contrast, (Bertinelli & Strobl, 2007) states that economic concentrations impact on economic growth, which in turn, the economic will more concentrated.…”
Section: Geographical Economic Concentration Analysismentioning
confidence: 99%
“…Furthermore, the agglomeration benefits of CIs are likely to decay quickly with distance, which in turn explains why CIs cluster at a finer scale. Empirical evidence has been provided for the US (Arzaghi & Henderson, 2008), the UK (Graham et al, 2010), Spain (Coll‐Martínez et al, 2019), and India (Hasan et al, 2018). Research also proposes approaches to mitigate the rapid spatial decay of agglomeration effects.…”
Section: Literature Reviewmentioning
confidence: 99%
“…Combes et al (2012), Accetturo et al (2018), and Kondo (2016) find that agglomeration economies rather than firm selection explain the productivity advantage of large cities for manufacturing industries in France, Italy, and Japan, respectively. However, both agglomeration and selection effects are shown to be important in determining the distribution of firm productivity for manufacturing industries in China (Ding & Niu, 2019; Howell et al, 2020) and for the prewar silk‐reeling Japan (Arimoto et al, 2014) and for science parks in Taiwan (Hasan et al, 2018). However, these papers mostly focus on manufacturing industries.…”
Section: Literature Reviewmentioning
confidence: 99%
“…However, it should be noted that manufacturing agglomeration does not always have a positive impact on innovation. Hasan et al [39] reported that the geographical proximity of enterprises would generate competition, which might offset the benefits of agglomeration. If the agglomeration is excessive, vicious competition and crowding effect will occur, and the negative externalities of agglomeration on innovation will hinder the promotion of EIE.…”
Section: Introductionmentioning
confidence: 99%