*

Industrial competition-cooperation strategies for both sides of Taiwan

Strait: The perspective of High-Tech industrial dynamic-evolution model

Leonard Fong-Sheng Wang

Yu-Jen Cheng

Department of Applied Economics

Department of Business Administration

National University of Kaohsiung

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 StraitTaiwan 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

1.

1980 90
1978

(1980 1992 )
(1993 )

1997

8090

2002
2002 3

0.25 2005
WTO

(Integration)(Embeddedness)

(1)(2)
(3)

2.

2.1

(1999)
(1)
(2)
(3)
(4)
(5)
(6)(7)
(1997)

Kelly (1977)
1/4
David (1982)
//
Boretsky (1982) 10%
2

 10%

1970 1980

1990

1 2002 3

(1)

(Turn-key)(2)

(3)

2.2

(Paradigm Shift)

(1999) 3
3

2.2.1

2.2.2
2Moores Law 18 24

2.2.3

2.2.4

2000

(Intel)(Gordon Moore) 1965

4

(Hollowing Out)

3.

3.1

(1999a)

3.2
(Industrial District)

3.2.1
5


(First Movers)
(Pilot Production)

(Economies of Scale)
C (q; w) q w

F C (q) = F + q
C (q) / q > C ' (q )

q1 q2 C (q1 ,0) + C (0, q 2 ) > C (q1 , q 2 )

(Economies of Scope)

(Sequential
Production)(Economies
of Sequence) x (Intermediate Inputs) q
x
C U (x) y q q = f D (x, y )
C D (q;x) C (q) q
x C U (x) + C D (q; x) > C (q) (C , C D , C U )

z
x = f U ( z ) q = f D (x, y , z ) z
z
q = f D (x, y,0)

3.2.2

San Jose
6

z e e
z e(z ) e' ( z ) > 0 e' ' ( z ) < 0

(Floating Embeddedness)

(2000)(1)
(2)

4.

4.1

(OEM)
(ODM)(OBM)

WTO

4.2

4.2.1

4.2.2
(First Movers Advantage)
9

(Second Movers Advantage)

(Trial and Error)

34

4.2.3

(Externality)
(Spillover Effects)

(Joint Venture)

(Katz and Shapiro, 1985) PC

PC
10

5.

5.1

B
C
D

11

5.2

12

()

()

()

()

()

()

()

()

IC

(HDTV)

IC HDTV
13

5.2.1

5.2.2

(1)(2)

WTO

IC IC
IC
5.2.3

14

OEM ODM

5.2.4

(Strategic
Alliance)
5.3

5.3.1

OEM

5.3.2

5.3.3

15

(Leveraged
Buyout)

6.

16


(1993)
(1997)
1-36
(2000)
(2001)
(1998)
(2002)

(2000)

(1996)
(2000)

(1995)
(1999a)
(1999b)
(1998)(Richard DAveni, 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
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