Inderscience Publishers

ICT industry development strategies and the formation of industrial innovation systems on the two sides of the Taiwan Strait

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The globalisation trend has significantly expanded the overall trading market leading to increased competition and changes in the global structure of manufacturing activities. As a result, we have witnessed the rapid flow of foreign direct investment into mainland China since it adopted its open market strategy in the 1980s. This paper sets out to combine regional and industrial concepts to form an innovation system based on a global view of the development strategy for the ICT industry under the triple dimension structure of interaction between markets, technology and institutions. The competition amongst multinational corporations for the mainland Chinese markets has been of equal importance, with strategic industrialists' adoption of 'co-opetition' strategies which have contributed to significant growth in the Chinese economy. The development of the ICT industry on the two sides of the Taiwan Strait, under such cooperative but competitive strategies, highlights the simultaneous development of an industrial innovation system.

Keywords: coopetition strategy, industrial innovation systems, strategic layout investment, development strategies, ICT, information technology, communications, foreign direct investment, FDI, China, Taiwan

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