Technopolis development: An assessment of the Hsinchu experience

Abstract The Hsinchu Science‐Based Industrial Park (HSIP) in Taiwan is a government‐led investment project located 50 miles south of Taipei established nearly 15 years ago. Its continuous growth in terms of revenue and investment has been recognized as a successful model of technology park development. Although regional development was not considered during planning, its economic achievement has indirectly impacted on the technopolis development in the long term. To accommodate the housing demands, the Hsinchu Science City Development Plan was prepared in 1991 to promote the technopolis development. However, it is regarded as a failed project. This paper will analyse the success factors of the park development and the failure factors of the Science City project. In addition, based on the Hsinchu experience, the institutional paradox of government‐led technopolis development is discussed.