TABLE OF CONTENTS Stephen Chen, Australian National University, National Graduate School of Management, Canberra, Australia
The success of Silicon Valley in stimulating the development of new technology and new firms is now legendary, and although the area was not purposely created, many countries around the world have sought to emulate its success by creating areas designated as technology parks, science parks, or something similar. They have all been attracted by the apparent ability of such clusters of firms not only to support technological development through their innovative activity but also to generate employment and contribute to GDP growth (Porter and Stern, 2001). Examples of such parks include Cambridge in the UK, Sophia-Antipolis in France, Hsinchu Technology Park in Taiwan, and Tsukuba in Japan.
Studies of industry clusters have often shown that geographical concentration is one important feature that has contributed to their success. One argument is that specialized skilled workers and firms may be attracted toward a region once a critical mass of firms within the industry is attracted there. However, there are arguments that clustering in high-tech sectors may follow a completely different pattern. Such...
