| According to the indicators of national research and industrial innovation performance proposed by OECD, some indicators of knowledge creation such as the number of patents and academic articles show that Taiwan can keep consistent with the world. In the rankings of many indicators in recent years, Taiwan are right after the developed countries such as America, Japan, and Germany, which is closely related to the generalization of higher education and the cultivation of intellectuals'innovation and research capabilities on which the education system in Taiwan focus.Taiwan is far behind these countries, however, according to other indicators of technological balance of payments and trade in highly research and development intensive industries proposed by OECD. For example, some production equipments, key components, and critical process-control skills, which are necessary to the development of industries in Taiwan, largely depend on importing.Knowledge creation of Taiwan can not be effectively applied to industrial innovation and improvement of technological capability, mainly because most firms are small and medium sized. According to the statistics of 2007, there were 1,236,000 small and medium sized firms, which accounted for 97.63% of the total. Most of these firms do not have enough research manpower and capital, so that in-depth innovation can not be implemented effectively. They can only make some gradual and minor improvement to products and manufacturing skills, resulting in the difficulty of industrial upgrading and technology innovating.This dissertation, therefore, mainly deal with how the advantageous knowledge creation and research innovation of academic institutions can be effectively used to promote the development of industries in Taiwan and improve their technology capability and how the local government can play an important role of an intermediary and facilitator of business and education cooperation by making relevant policies and regulations, providing financial support, and the opportunities of education and training, building more research institutions, and promoting the development of small and medium sized firms. What is more, this dissertation focuses on the impact of organizational learning, social capital, and knowledge creation on the performance of research innovation during the process of promoting business and education cooperation.As to methodology, literature review, case study, in-depth interview, and other qualitative research methods are used. To begin with, the author extensively reviews literature on organizational learning, social capital, knowledge creation, innovation and performance to identify important variables. By doing so, the author find that the knowledge required for enterprise innovation comes from the inside and outside of an organization. Therefore, complex and diverse knowledge should be effectively integrated so that it can be transformed into key advantages. This dissertation attempts to establish a causal relationship between organizational learning, social capital, and knowledge creation, and innovation performance. Key variables will be identified by literature review so that a conceptual framework can be built, and then case study and in-depth interview will be done according to the constructs under discussion. Finally, Research conclusions will be drawn based on analyzing the cases.Six industry and education cooperation cases will be chosen in this dissertation. With evidence being strengthened by replication logic, the analytic generalization will be used to analyze the model of industrial innovation performance based on industry and education cooperation, proposed by this dissertation. Multiple cases can test the feasibility of this model. According to the seven types of Taiwan's industry and education co-operation, six types are selected. Then in-depth interviews are done with relevant professors of industry-education cooperation program, industry executives or top management to know about the effectiveness of its implementation in order to test the feasibility of this model. Those cases of failure will be explained from the perspective of theory. Case study shows that the cooperation relationship between industry and education can make up for being lack of innovation capabilities and research resources and address the issue of local government helping small and medium enterprises upgrade and promoting national research of forward-looking industry. However, the success of maintaining the industry and education cooperation mainly depends on the causal relationship between organizational learning, social capital, knowledge creation, and innovation performance. The conceptual framework is indeed feasible, which is tested by multiple cases. At the same time, the conclusions drawn from it are as follows:First, building partnerships between the local government, education, and industry to meet the needs of industrial innovation during the era of knowledge economy with technological development and rapid change in market. The role played by the local government in promoting cooperation between industry and education should be from providing financial support to each party to linking the two parties, building partnership between the local government, industry, and education and maintaining the competitive ability of industrial development and economic growth through building basic industrial infrastructure and the environment. The industries should make full use of rich research manpower accumulated in the academic field to make up for being lack of revolutionary innovation capability. The academic institutions should put its theories, research results, product ideas and design into application, so that businesses can be benefited and all parties involved win finally.Second, after the partnership between industry and education being established, industries should mainly focus on gradually-improving innovation, while the academic institutions contribute to revolutionary innovation. Technology development, the development of prototype technologies, and volume production technology based on the cooperation relationship between industry and education are beneficial to creating skills and knowledge required by industrial innovation and efficiently making use of them. The academic institutions are good at proposing new innovative concepts. Many revolutionary innovations are made through this type of cooperation. In facing of rapid change in market and research time reducing, new ideas and inventions of revolutionary innovation must be effectively utilized. Academic institutions are appropriate for making revolutionary innovation.Third, during the implementing process of industry and education cooperation, organizational learning, social capital, knowledge creation, as measuring dimensions, are determinants of the cooperation. With the increasing of organizational learning and social capital, the impact of them on knowledge creation increase consequently. With the increasing of knowledge innovation, its effects on the performance of innovation will be more practical. Otherwise, if there is no breakthrough in organizational learning and knowledge innovation, the cooperation program may be stopped and cooperation can not proceed.Fourth, a good industry and education cooperation will eventually contribute to improvement in the major field or innovation in a new field. Improvements can be made in the present field by forming critical industrial skills. In addition, industry and education cooperation can also promote innovation performance of new areas including next-generation products and technology innovation, and revolutionary products and technical innovation.In the era of knowledge economy, the success of industrial innovation depends on whether innovation knowledge and technology can be quickly and accurately applied to industrial innovation and commoditization. This is the driving force that many developed countries actively promote industry and education cooperation to enhance one nation's economic competitive ability. As small and medium enterprises are the main components of Taiwan's industries, the local government has actively promoted industry and education cooperation, and linked academic research and industry application to improve companies'innovation performance in terms of technical knowledge creation and knowledge transfer through industry-education cooperation, effective organizational learning, and close relationship of social capital, which will benefit a lot to Taiwan's economic growth, national competitiveness, industrial upgrading and practical development.
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