Manufacturing servitization and revitalizing industrial clusters: a case study of Taiwan's LIIEP

Meng-Chun Liu

Journal of the Asia Pacific Economy, 2015, vol. 20, issue 3, 423-443

Abstract: In the recent years, the ‘manufacturing servitization’ has been put at the center of Taiwan's industrial policies in order to solve the low value-added problem. In pursuit of regional development rebalance, industrial and technology policies are also hired to revitalize weak industrial clusters by using R&D grants and leveraging the capabilities of various public research institutes. Few studies examine the existence of potential policy dilemma in the redistribution of R&D resources to achieve purposes of the industrial upgrading by ‘manufacturing servitization’ and achieving regional development rebalance by reallocating R&D resources toward low-development regions or sectors. Drawing on the project office dataset of the ‘Local Industrial Innovation Engine Program’, with 907 samples, this study intends to provide with empirical evidence to address that ‘manufacturing servitization’ has been influencing the formation of R&D alliances further to allocating R&D resource bias to highly developed regions and industrial sectors, rather than revitalizing industrial clusters. Accordingly, there may remain a potential controversial problem for the industry policy to achieve both purposes of improving value-added and balance development across regions or sectors.

Date: 2015
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DOI: 10.1080/13547860.2015.1054168

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