Public R & D and Industrial Innovations at the Project Levels: An Exploration of Taiwan's Public Research Projects

By Jang, Show-Ling; Huang, Guo-Gang | Contemporary Economic Policy, October 2005 | Go to article overview

Public R & D and Industrial Innovations at the Project Levels: An Exploration of Taiwan's Public Research Projects


Jang, Show-Ling, Huang, Guo-Gang, Contemporary Economic Policy


I. INTRODUCTION

Economic development policies in Taiwan in the late 1950s and 1960s favored the exportoriented manufacturing sector that mostly produced labor-intensive products such as garments, toys, and furniture. Though the value of export to the United States contributed roughly 40% of Taiwan's total exports in the 1970s, no patents in the high-technology area had been granted to Taiwanese companies by the U.S. Patents and Trademarks Office until the mid-1980s. Taiwanese government's effort to enhance her manufacturing capability included a series of government-subsidized research and development (R & D) projects that began in the early 1970s. Government support for the island's attempt to emulate California's Silicon Valley in Hsinchu, Taiwan, took the form of three institutions established for the purpose of technology diffusion: (1) the Industrial Technology Research Institute (ITRI), (2) the Hsinchu Science-based Industrial Park, and (3) two neighboring universities with a heavy emphasis on science and engineering study. The resultant high-technology clustering led to a succession of collaborative R & D ventures between public institutions and private firms.

Research studying the public R & D and private sector linkage has devoted considerable effort in the past to measuring the effectiveness of industrial policy in developed economies using firm-level or country-level data. Such literature includes Irwin and Klenow (1996), who evaluated the U.S. Sematech program; Wallsten (2000), who analyzed the U.S. Small Business Innovation Research program; Branstetter and Sakakibara (1998, 2002), who examined the performance of Japanese research consortia in high-tech industries; and Stern et al. (2000), who explored the determinants of country-level innovative capacity in Organisation for Economic Co-operation and Development countries.

Literature focusing on Taiwanese government's effort toward developing the island into a science and technology (S & T) center includes Mathews's case studies (1997, 2002), in which he examined the evolution of the organizational architecture from the viewpoint of management where he attributed Taiwan's success in the high-tech industry to its capacity to leverage resources and to pursue a strategy of rapid catch-up, much to the credit of its government. To the authors' knowledge, none of the previous studies has quantitatively analyzed the R & D production behaviors of public industrial R & D in Taiwan. This article targets this issue using a set of newly accessible project-level data. Rather than following the conventional approach using firm-level or country-level studies, the present sample contains data on 252 public-funded annual research projects conducted by the ITRI in Taiwan during the period 1991-99. The data are compiled from the online database of the Ministry of Economic Affairs (MOEA), final reports on ITRI S & T research projects, and the authors' surveys of the characteristics of the 5902 cases of locally transferred technologies involved within these S & T projects.

In terms of data construction in the empirical analysis, the authors adopt two new approaches. The conventional wisdom for measuring innovation output uses the number of patents achieved by an entity. Instead of this standard index, the authors measured innovation out put by the monetary value of patents, applying the concepts of willingness to pay and propensity for patenting. The authors also upgrade the measurement of labor input by incorporating a quality-adjusted indicator in the R & D production function.

The empirical study includes testing the impacts of project characteristics on project-level productivity. These characteristics involve projects with an orientation toward process or product innovation that clearly had a technological focus. Effects of demographic characteristics of the participating firms, such as geographic proximity and firm size, are also tested. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Public R & D and Industrial Innovations at the Project Levels: An Exploration of Taiwan's Public Research Projects
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.