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Science Parks in Taiwan and Their Value-adding Contributions

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  • FUKUGAWA Nobuya
  • CHANG Kuo-I

Abstract

The establishment and expansion of science parks have been pivotal to Taiwan's economic development. This study integrates administrative, financial, and patent data to evaluate the causal impact of Taiwan’s three major science parks—Hsinchu, Central, and Southern—on tenant firms across three types of additionality: input, behavioral, and output. Specifically, it investigates whether relocating to science parks significantly enhances R&D investment, PhD employment, total factor productivity, and patent quality. To address challenges like staggered firm entry and selection bias, the study employs augmented inverse probability weighting combined with a difference-in-differences model for panel data with staggered treatments, ensuring robust causal inference. The findings reveal significantly positive effects across all three types of additionality, extending beyond the Hsinchu Science-based Industrial Park. By integrating multiple value-adding channels and expanding the analysis to all three major science parks, this research provides a comprehensive evaluation and extends the scope of previous studies. Additionally, it highlights heterogeneity in effects by firm size and industry, underscoring the need for tailored policies to maximize the benefits of science parks.

Suggested Citation

  • FUKUGAWA Nobuya & CHANG Kuo-I, 2025. "Science Parks in Taiwan and Their Value-adding Contributions," Discussion papers 25005, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:25005
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