Abstract
This paper provides an empirical analysis of co-agglomeration in Taiwan manufacturing sectors. We construct labor similarity by combing wage premium and higher education ratio. In addition, we use effective patent counts and R&D stocks to capture knowledge spillover effect. Given empirical result, we found both labor similarity and knowledge spillover have significant and positive effect on co-agglomeration in Taiwan manufacturing. After robustness check, we believe that this research in a manner provides reasonable explanation for the extent of Taiwan manufacturing’s co-agglomeration from 1991 to 2011. Due to restriction on inadequate data and imperfect methods of robustness check, we should use the result very carefully.