Small Business Economics

, Volume 30, Issue 4, pp 405–422 | Cite as

Firm Clustering and Specialization: A Study of Taiwan’s Machine Tool Industry



This study investigates links between firm clustering and firm specialization. The paper argues that firms located in multi-centered, locally owned industrial districts are likely to be relatively specialized. Based on data from 163 companies in Taiwan’s machine tool industry, this study finds support for a positive association between location in a multi-centered, locally owned industrial district and firm specialization.

Key words

Taiwan machine tools industrial districts firm specialization vertical integration product scope 

JEL Classification

D20 L11 L22 L23 L26 O30 R30 


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Copyright information

© Springer Science+Business Media, LLC 2007

Authors and Affiliations

  1. 1.The Fletcher SchoolTufts UniversityMedfordUSA

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