Cluster policies and industry development in the Hsinchu Science Park: A retrospective review after 30 years

In 1980, Taiwan established the Hsinchu Science Park (HSP). The HSP accounted for the creation of 1.43 million jobs and extraordinary contributions to the economic growth of the nation. This development also placed Taiwan on top of the innovation index. This study provides a systematic review of the applied policy tools and the industrial cluster evolution of HSP over four stages. The Boston Consulting Group framework is used to delineate the strategic position and movement of industries in each stage. After 30 years, HSP has become oversaturated, with two Cash Cow and four Dog industries left. Facing such a bottleneck, this paper recommends the HSP 2.0 strategy for policymakers to improve the added-value and sustainable competitiveness of HSP.