Abstract
This paper attempts to empirically investigate the mechanisms underlying growth in Hsinchu high-tech clusters. We emphasize knowledge spillovers as one of the potential factors contributing to agglomeration benefits. This paper sheds light on the impact of external and internal spillovers on firm performance in Hsinchu high-tech clusters. The empirical results provide supporting evidence that the external R&D spillover is statistically significant in explaining net sales of firms in Hsinchu high-tech clusters.
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