This study proposes an integrated approach to measuring the broader definition of scale economies proposed by Morrison and Siegel. The paper attempts to tackle the three unsolved problems in Morrison and Siegel, and thus will offer a methodological refinement and in the meantime make a significant contribution to the literature. Calculation of the total scale economies measures suggest Taiwan¡¦s production technology exhibit long-run increasing returns to scale in the presence of external economies. A comparison of the conventional measure of scale economies indicate a possible downward bias when short-run fixity as well as external economies from high-tech capital investment, R&E and human capital, are not explicitly recognized.