The cluster policies to nation competitiveness based on business ecosystem perspective — Case study of Taiwanese smart phone industry

Clusters can be defined as regional concentrations of specialized companies and institutions connected through multiple physical and social linkages. The challenge is that there are consistently more innovations needing multiple specialized companies across national boundaries in order to continue new product development. The linkage of inter-companies has shifted by the new paradigm of ICT. At the same time, the new paradigm of business strategy changes from "inside to outside" to "outside to inside." As such, this may influence current cluster policy. This study explores phenomena concerning the Taiwanese smart phone industry and geographical cluster issues. We find innovation makes it harder to define the industry cluster. The business ecosystem model demonstrates that different stakeholders can have a mutually beneficial basis and evolution of links. It does not focus on the geography and characteristics of industrial areas. It promotes industry policy and the rethinking of developmental strategies under the perspective of caring for local and global resource connections.