Reassessment of the State Role in the Development of High-tech Industry: A Case Study of Taiwan`s Hsinchu Science Park

Abstract

This article reassesses the state role in the development of high-tech industries through a case study of one of the earliest science parks in Asia, Hsinchu Science Park. Taking a historical and public policy approach to this issue, the article argues that the state did play a positive role in the growth of high-tech industries in Taiwan. However, not all positive outcomes were derived from rational political elites and state bureaucracy. There existed many unintended and path-dependent consequences. In addition, many planned goals have not been achieved and there were many side effects and negative outcomes neglected by previous studies, which give significant implications for the evaluation of state`s capability and limitation in pursuing economic development.