Abstract

In a knowledge-based economy of the globalizing economic order, the role of regions is very significant in order to create and to disperse knowledge. Particularly, geographical clusters of firms in a single sub-national region may contribute to transmitting certain kinds of knowledge between and among firms. In addition, markets prefer to favor specialized firms with a coherent body of knowledge when knowledge creation and the use of new knowledge become increasingly important for maintaining and improving a firm’s competitiveness. Therefore, regional policy makers may not interfere directly with markets and firms when the process of globalization pushes national economies into a world of learning and innovation. The reason is that the institutional framework for market exchange favors knowledge exchange in a globalizing economic system. This paper argues how East Asian science cities such as Tsukuba Science City in Japan, Daedeok Innopolis in South Korea, Hsinchu Science-based Industrial Park in Taiwan, and Zhongguancun Science Park in China have been developed in order to create technology innovation as well to contribute to national and regional economic growth. Moreover, it also focuses on their competitiveness and the further development strategy that aims to become global science cities. Finally, it also discusses whether their competitiveness as innovative clusters is based on global or local levels.