Abstract
Comparing to Japan and Korea, Taiwan is a latecomer in the TFT-LCD industry. But in recent years, Taiwan has been catching up with other leading countries. This research uses the concept of technological system to explain the process of catching-up. And according to the model, investigating how the institution and interaction among the people affect the performance of technological system. This research uses the concept of technological system . There are four dimensions to analysis Taiwan’s TFT-LCD industry. (1) Economic competence: Taiwan’s firms use the opportunity to enter TFT-LCD‘s manufacturing.(2) Clustering and networks: because the next generation of TFT-LCD, Taiwan’s firms are clustering in some regions.(3) Development blocks: use some index to measure Taiwan’s firm’s R&D energy.(4) Institution infrastructure: Find the interaction between firms and ITRI, university, finance system and government policy’s effect. Key words: Technological system: TFT-LCD