Economic development requires knowledge in today's knowledge-based economy. The achievement of economic development in one area depends directly on the efficiency of the attainment, accumulation and application of knowledge and information. These processes rely heavily on the involvement of human resources with technological knowledge and technical skills. Correspondingly, knowledge creation ability and the efficiency of knowledge creation and application determine industrial clustering and economic sustainability. Current surveys of industrial clusters in Taiwan have ascertained that clusters of traditional industries do not necessarily lead to innovation although, empirically, an industrial cluster is a prerequisite for innovative activity. Recent studies have addressed the effects of the spatial proximity among firms and advanced research institutes in the Hsinchu area. According to their results, industrial clustering positively influences innovation by technological companies. Based on available results, this study considers how interaction between technological communities and industrial clustering influence the innovative activities in a sample area. Additionally, this study analyses social networking within the technological community and the relationship to industrial clustering in the Hsinchu area. Results of this study provide a valuable reference for industrial district planning and management.
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