A System Dynamics Model of the TFT LCD Industry Development in Taiwan

Abstract

The TFT LCD (Thin Film Transistor Liquid Crystal Display) industry is one the most rapid growth high-technology industry in recent decades. The development process of this industry is complex and dynamic, requires the accumulation of technology capability, capital, production capacity, and human resources. For a late coming country, the development process also involves with tense interactions of 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 Taiwan’s TFT LCD industry. A qualitative model illustrating the resource accumulation structures was derived based on the development history. Implications of this study are also discussed.