Bay-to-bay strategic alliances: the network linkages between Taiwan and the US venture capital industries [1]

International Journal of Networking and Virtual Organisations

Volumn 1, Issue 1, 2002, Pages 17-31

  Saxenian, AnnaLee ^a   Li, Chuen Yueh ^b  

^a UNIVERSITY OF CALIFORNIA   (United States)

^b UNIVERSITY OF CALIFORNIA   (United States)

Author keywords

information technology; investment network; Overseas Chinese; Silicon Valley; strategic alliance; Taiwan; Venture capital

Indexed keywords

EID: 77957055187     PISSN: 14709503     EISSN: None     Source Type: Journal    
DOI: 10.1504/IJNVO.2002.001461     Document Type: Article

References (31)

1. The idea of ‘Bay-to-Bay’ comes from: (1) the Chinese meaning of the second word, Taiwan being ‘bay’ and (2) the region of Silicon Valley being surrounded by the San Francisco Bay.
2. ‘The new economy’, Business Week, (200) 31 Jan., pp.73–77.
3. Becker, R. and Hellman, T. (1999) ‘The attempted genesis of venture capital in Germany’, Draft, Stanford Graduate School of Business, 17 June.
4. http://www.tvca.org.tw/p12-1.htm. Note: The number was calculated based on the exchange rate, US: NT = 1 : 30.8.
5. Saxenian, A. (1999) ‘The Silicon Valley – Hsinchu Connection: technical communities and industrial upgrading’, SIEPR Discussion Paper No. 99-10, Stanford Institute of Economic Policy Research, September.
6. The Statute for Encouragement of Investment: 1961–1990, Ministry of Finance, Taiwan.
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9. ‘The interview with K.T. Li’, (1985) Common Wealth, 1 March, pp.28–31.
10. Venture Capital in Taiwan, 1998 Edition, (1999) Taiwan Venture Capital Association.
11. There are three different categories of stocks in the Taiwan Stock Exchange Market. The requirements of profit capability and stock distribution for a company’s stock to be listed as the first and second categories are very strict. However, to promote high-tech industry, the government defined the third category stock for high-tech industry and set up a special evaluation standard by considering the special industrial properties (e.g., shorter product life cycle, higher investment size, and higher investment risk, etc.) which cause difficulties achieving the required profit performance and distribution of stocks.
12. http://www.tvca.org.tw/p12-1.htm.
13. Tseng, I. (1998) ‘The discussion of the development of venture capital businesses’, The Monthly Journal of Taiwan Economic Research, Vol. 21, No. 1, January.
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17. Hellman, T. (1998) WI Harper International: Bridge between Silicon Valley and Asia, Graduate School of Business, Stanford University, SM-39.
18. Over the Counter (OTC) is the exchange market for third category stock where the real capital of the issued company is at least NT $50 million or US $ 1.67 million and the number of shareholders with shares between 1000 and 50,000 is greater than 300.
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22. ‘Venture capital and high-tech fly together’, (1997) Common Wealth, 1 September, pp.80–92.
23. Benny Hu Interview, (1999) 1 November.
24. Ding-Hua Hu Interview, (1997) 4 May.
25. Freear, J., Sohl, J. and Wetzel, W. (1994) ‘Angels and non-angels: are there differences?’, Journal of Business Venturing, Vol. 9, No. 6, pp.109–123.
26. According to the Taiwan Venture Capital Association, the total accumulated amount invested in foreign countries was US$514.28 million by 1998. In addition, according to Benny Hu – the president of CDC, current annual investment in Silicon Valley by Taiwan’s VC industry is over NT $5 billion or US $167 million.
27. Hara, G. and Kanai, T. (1994) ‘Entrepreneurial networks across oceans to promote international strategic alliances for small businesses’, Journal of Business Venturing, Vol. 9, No. 2 pp.489–507.
28. This is similar to the results of Sapienza, H., Manigart, S. and Vermeir, W. (1996) ‘Venture capitalist governance and value added in four countries’, Journal of Business Venturing, Vol. 11, No. 6, pp.439–469, who found that VCs with operating experience in the venture’s focal industry added significantly more value than those with less industry-specific experience.
29. J. Freear, J. Sohl and W. Wetzel [25] found that business angels in the USA prefer investing in entrepreneurial ventures that are in the later stages of development which is more conservative compared with Taiwanese investment angels.
30. ‘Asia online: the tiger and the tech’ (2000) The Economist, 5-11 Feb., pp.64–66.
31. Isaacs, J. ‘PC makers shift new investment toward software’, Nikkei Electronics.