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Bay Area (California, USA) and Hsinchu (Taiwan) Biotech Clusters: A Comparative Analysis

ABSTRACT Over the years industry clusters have been touted to have economic and strategic advantages and have been used to develop embryonic industries. Cluster development process and methodology have generally taken two distinct approaches, “laissez-faire,” which is economic system driven vs. “planned/sponsored,” which is driven by government policy and intent. This paper looks at two biotech clusters that are representative of each of these methodologies, the SF Bay Area (California, U.S.) cluster and the Hsinchu (Taiwan) cluster to identify the evolution and success of these two methodologies.