Using 1992-2000 data on electronics manufacturers, this paper aims to investigate the relationship between the two types of agglomeration-labor and R&D agglomeration-and R&D activities. The measurement of agglomeration is primarily based on Busch and Reinhardt's method (1999). In addition, distance between manufacturers is also integrated into the measurement. Empirical results show that among the manufacturers in a horizontally-related industry, their R&D agglomeration is greater than their labor agglomeration. In comparison with other manufacturers, i.e. those in a vertically-related industry, no significant difference in the degree of the two agglomerations is observed. The two types of agglomeration in a horizontally-related industry and vertically related industry both have a positive effect on R&D activities for the electronics industry. The R&D activities themselves have vertical and horizontal spillover effects. In addition, empirical results also point out that regional differences have a significant impact on R&D activities.