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* Industrial competition-cooperation strategies for both sides of Taiwan Strait: The perspective of High-Tech industrial dynamic-evolution model Leonard Fong-Sheng Wang Department of Applied Economics National University of Kaohsiung Yu-Jen Cheng Department of Business Administration Fortune Institute of Technology Abstract: The purpose of this paper is to study the possibility and feasibility of competition-cooperation strategies for both sides of Taiwan Strait Taiwan and mainland China, from the standpoint of dynamic model of industrial evolution. First, we divide the stages of industrial life cycle by utilizing the distinction between basic science and applied science. Next, we analyze the dynamic development procedure of industrial competence under the following two dimensions, integration and embeddedness, which are utilized to describe the intra-industrial firms structures. Recognizing the difference existed on the development procedure of High-Tech industry between both sides, we propose three strategic principles. Third, we combined the three strategic principles with the dynamic development procedure of industrial competence within an integrated framework that will then be used to examine four High-Tech industries of both sides, respectively. Finally, three feasible competition-cooperation strategic models are recommended for both sides on the four chosen industries. Key words: High-Tech industry, Industrial life cycle, Integration, Embeddedness, Competition-cooperation strategies. 2002 12 2002

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(1993 (1997 1-36 (2000 (2001 (1998 (2002 (2000 (1996 (2000 (1995 (1999a (1999b (1998 (Richard D Aveni, 1994, Hyper-competition. (1997 (2001 WTO 1-17 (1999 1-46 (1994 (1997 (2000 (2001 (Harvard Business Review on Managing High-Tech Industries. (1999 47-73 Boretsky, M. (1982, The Threat to U.S. High Technology Industries: Economic and National Security Implications Draft, International Administration, U.S. Department of Commerce. Colombo, M.G. and Delmastro, M. (2001, Technology Use and Plant Closure, Research Policy, 30, pp. 21-34. 17

David, L.A. (1982, Technology Intensity of U.S. Output and Trade, Office of Trade and Investment Analysis, U.S. Department of Commerce. Font, M. and Coomb, R. (2001, Contribution of New Technology-based Firms to the Strengthening of Technological Capabilities in Intermediate Economies, Research Policy, 30, pp. 79-97. http://livenews.lycosasia/com/ http://www.tier.org.tw/ http://www.tssdnews.com.tw/ http://forums.chinatimes.com.tw/ http://www.it is.itri.org.tw/forum/ Katz, M.L. and C. Shapiro (1985, "Network Externalities, Competition, and Compatibility." American Economic Review, 75, pp. 424-440. Kelly, R.K. (1977, The Impact of Technological Innovation on International Trade Pattern, Office of International Economic Research, U.S. Department of Commerce. Kumar, N. (2001, Determinants of Overseas R&D Activity of Multinational Enterprises: The Case of US and Japanese Corporations, Research Policy, 30, pp. 159-174. Jones, G.K., Teegen, H.J., and Lanctot, A. Jr. (2001, Determinants and Performance Impacts of External Technology Acquisition, Journal of Business Venturing, 160, pp. 225-283. Porter, M.E. (1985, Competitive Advantage, NY: Free Press. Porter, M.E. (1996, The Competitive Advantage of Nations, NY: Free Press. Pyke, D., Robb, D., and Farley, J. (2000, Manufacturing and Supply Chain Management in China: A Survey of State-, Collective-, and Private-owned Enterprises, European Management Journal, 18, pp. 577-589. Schumpeter, J.A. (1961, Theory of Economic Development, NY: Oxford University Press. Spulber, D.F. (1992, Economic Analysis and Management Strategy: A Survey, Journal of Economics & Management Strategy, 1, pp. 535-574. Spulber, D.F. (1994, Economic Analysis and Management Strategy: A Survey Continued, Journal of Economics & Management Strategy, 3, pp. 355-406. 18