1.The formation of industrial Parks

Industrial development is the locomotive of Taiwan’s economic development. Along with the rapid development of industry, factories were set up one after another and spread all over Taiwan. In the initial period the government made no planned provision of plant sites in industrial parks, so a lot of factories developed mainly along arterial roads and in scattered locations, resulting in an inability to use and control land and the environment effectively.

In response to this situation , in 1970 the Industrial Development Bureau of the Ministry of Economic Affairs set up a development team, in line with the statute for Encouragement of Investment to develop land in industrial estates where investors could set up factories. This has had a tremendous influence on our industrial development and land-use planning.

2.Government assistance for land acquisition

3.The Significance of industrial Parks

• They solve the problem of land acquisition for investors
• They permit efficiencies of industrial grouping
• They avoid adverse impacton the surrounding environment
• They boost development of the local economy
• They provide an environment for high-value-added production
• They cultivate strategic industries

4.The History of Industrial Park Development

The development of industrial parks in Taiwan has expanded from the simple provision of factory land initially to coordination with the national policy of balanced regional development and upgrading of economic development policy. Looking back, we can divide the evolution of our industrial parks into four major development periods: Initial Period, Growth Period, Transformation Period, Redevelopment Period.

Initial Period（1960-1970）

Background of development :

As industry developed steadily, the problem of industrial land received added attention. The provisions in the 1960 statute for Encouragement of Investment regarding the development of industrial land were the ROC’s first statutory rules on the establishment of industrial parks.

Some representative industrial parks:

• The Liutu Industrial Zone, established in 1960, was the first industrial zone developed by the government.
• The Kaohsiung Export Processing Zone, established in 1965, was the nation’s first export processing zone
• The Paoan Industrial Zone, established in 1969, was the first privately industrial zone

Growth Period （1971-1980）

Background of development

The development of industrial parks during this perios was carried out primarily in coordination with economic development plans for the establishment of such industrial as petrochemicals, steel, and shipbuilding.

Some representative industrial parks

• Specialized industrial parks were established at Linyuan, Tashe, and other areas.
• Rural industrial parks were developed at Chusshan, Paitou, and other places to stem the outflow of rural manpower.
• Additional export processing zones were developed at Nantzu in kaohsiung and Tantzu in Taichung.

Industrial parks developed during this period were no long concentrated in central and southern Taiwan. The majority of them were located in northern and central Taiwan, and development was begun in eastern Taiwan as well.

Transformation Perios （1981-1990）

Background of development :

In the years following 1983, under the influence of international recession the demand for industrial land declined and industrial park development was contracted accordingly.

Some representative industrial parks:

• The Hsinchu Science-based Industrial Park was developed to attract high-tech industrial and promote industrial upgrading.
• A Small and Medium Enterprise Specialized Zone was established in the Kaohsiung Coastal Industrial Park in order to assist the development of medium and small enterprises.

The Hsinchu Science-based Industrial park, which was developed during the period, laid the foundation for Taiwans’s transformation from traditional industrial to high-tech industrial.

Redevelopment Period（After 1990）

Background of development:

Along with the rise of environmental consciousness, intensified competition for land resources, and the pressure of upgrading faced by domestic industries. The form of industrial park development changed toward a diversification of specialization. The 1990 statute for Upgrading of industrial listed the preferred industrial for establishment and demanded the upgrading of environmental quality in the parks.

Some representative industrial parks:

• The Hoping Cement Industrial Park in Hualien was developed.
• The Changhua Coastal Industrial Park and Yunlin Offshore Basic Industrial Park were developed througj the land reclamation method.
• The Nankang Software Park in Taipei was contruceted.
• Technology industrial parks were developed in Tainan and Yunlin.

The industrial parks developed during this period were planned to meet the needs of specialization, diversification, and industrial upgrading.