This research investigates the development of an ICT (Information and Communication Technology) creative industry cluster. It examines what and how factors affect the cluster size. By knowing the factors and its effect, effective policies can be constructed to develop the industrial cluster and increase its competitiveness. The factors are determined through literature analysis of previous study about cluster size and an observation of Taiwan creative ICT industry in practice. The proposed model using system dynamics justifies the behavior and the effect of each factor. We found that market demand, innovation, and government incentive play important roles in increasing the cluster size. From an evaluation by scenarios, this study confirms that a policy in enhancing market demand will give higher effect to the cluster size as compared to a direct incentive policy.

This research investigates the development of an ICT (Information and Communication Technology) creative industry cluster. It examines what and how factors affect the cluster size. By knowing the factors and its effect, effective policies can be constructed to develop the industrial cluster and increase its competitiveness. The factors are determined through literature analysis of previous study about cluster size and an observation of Taiwan creative ICT industry in practice. The proposed model using system dynamics justifies the behavior and the effect of each factor. We found that market demand, innovation, and government incentive play important roles in increasing the cluster size. From an evaluation by scenarios, this study confirms that a policy in enhancing market demand will give higher effect to the cluster size as compared to a direct incentive policy.

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