The TFT LCD (Thin Film Transistor Liquid Crystal Display) industry is one the most rapid growing high-technology industry in recent decades. The development process of this industry is complex and dynamic, requiring the accumulation of technology, capital, production capacity, and human resources. For a late coming country, the development process also involves tense interactions with the national innovation systems and international industrial networks. Taiwan has become the second largest TFT LCD producer within two decades; the underlying structure behind the success is an interesting topic to explore. This study used system dynamics to analyze the development process of the Taiwanese TFT LCD industry. A qualitative model was derived based on the development history. Implications of this study are also discussed.
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