| Taiwan's small and medium enterprises (SMEs) are well recognized throughout the world for their outstanding performance. Without an appropriate standardized definition, though, the contribution of SMEs to Taiwan's economy over the past two decades cannot be accurately assessed. Moreover, most existing SME studies are conducted in the fields of either economics or sociology, and there is little literature dealing solely with SMEs from a spatial perspective. This research explores the growth and transformation of SMEs in Taiwan from 1976 to 1996 at the national, regional, and urban levels. First, it redefines SMEs and reassesses their performance. Second, it establishes an endogenous spatial theory of SMEs and tests the theory empirically. This research thus argues that only an integrated examination of the sectoral, spatial, and temporal dimensions of SMEs can provide a working framework for policy analysis.;The major data used in this dissertation are drawn from Industrial and Commercial Censuses published by the Directorate-General of Budget, Accounting, and Statistics, Executive Yuan, the Republic of China on Taiwan. Econometric analysis is utilized to test the spatial structure of SMEs.;The major findings of the analyses reveal the importance and the spatial structure of SMEs. The employment measure indicates that SMEs have played a dominant role in Taiwan between 1976 and 1996. The value added and sales measures show that the role of SMEs, although formidable, has not been dominant. The increase in the SME share of employment was primarily due to the change within each sector, rather than across sectors. Either a vertical integration or an upgrading of SMEs into large enterprises (LEs) has emerged between 1986 and 1996. Moreover, an endogenous spatial theory of SMEs suggests that, for all SMEs, cities are their dynamically spatial entities. A diversified city is the preferred spatial environment for SMEs. As SMEs shift to technology-intensive, information-oriented, and global-local connected industries, the spatial pattern of industrial specialization in cities is expected. Finally, some policy implications are also suggested. |
