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The thesis entails a study of impacts of government policy on the develpmentof
This thesis entails a study of impacts of government policy on the development
of Taiwan''s IC industry, exploring the interdependence betweenthe policy inst
ruments and critical factors responsible for industrial competitiveness. A mod
el was developed to assess the interdependence withinwhich Porter''s Diamond Sy
stem is adopted to represent the national competitiveness for the IC industry.
There are four key elements in the diamond system, namely, factor conditions
, Demand conditions, Related and supporting industries,and Firm''s strategy, st
ructure, and rivalry. It also is assumed that the function of government poli
cy is to facilitate the development of these four elements, which are the crit
ical factors leading to the competitiveness of nation''s industry, strengthenin
g and crafting the development of the indigenous industry.There are three step
s in the development of Taiwan''s IC industry, namely theseed, the diffusion, a
nd the stable stages. In the seed stage (1974-1979) ,there are 13 policy inst
ruments contributing to the developments of factor conditions and demand condi
tions of the industry. In the diffusion stage (1980-1988), there also are 13
policy instruments contributing to the developments of factor conditions, dema
nd conditions, and related and supporting industries of the industry. In the s
table stage (1989∼present ),there are 16 policy instruments responsible for c
ontributing to the developments all the four elements in the diamond system. B
ecause of the national competitiveness of the diamond system in the globel mar
ket, Taiwanese firms now enjoy stable growth in terms of industrial output and
developments of related industries.
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