Ways to reduce production cost in high-tech parks: SD modeling and policy analysis

This paper investigates into what affects the production cost of hi-tech parks. A model based on system dynamics was provided for the structural analysis of the long-term development of hi-tech parks. Simulation shows that the production cost exhibits a 3-period dynamic behavior and it can be reduced by increasing private and governmental inputs. Parametric analysis was performed to identify the effects of major policy-related parameters on the model behavior. The quantitative effects of increases in infrastructure investment, service platforms investment and the proportion of innovative research and develop input from private sectors were discussed.