ABSTRACT
This chapter deals with theoretically arguable hypotheses regarding the nature of high-tech development. It reviews the empirical model appropriate to analyze the dynamics of high-tech industry and explains the regression models, such as cross-sectional and time-series models, explores the differing effects on regional high-tech growth by firm size, organizational type, and product. The modeling for the cross-sectional and time-series analyses is basically the same, and thus the same notation is used. The chapter discusses the research design strategy that is employed in the regression estimations. It also reviews the empirical model to analyze the effects of high-tech development on regional economic growth. Exceptions are made with software firms, research, development, and testing companies and laboratories that have significant regional presence and technical expertise. The chapter shows that regional high-tech growth is determined by dynamic externalities, controlling for other regional characteristics.
