IDEAS home Printed from https://ideas.repec.org/a/zbw/espost/259786.html
   My bibliography  Save this article

A great leap? Domestic market growth and local state support in the upgrading of China's LED lighting industry

Author

Listed:
  • Ten Brink, Tobias
  • Butollo, Florian

Abstract

In this article we analyse the conditions for industrial upgrading in the Chinese LED industry, which proactive local state policies and expanding domestic markets have greatly facilitated. State initiatives provoked overinvestment, but eventually led to the emergence of competitive domestic enterprises. Simultaneously, firms benefited from a growing domestic market on which they outcompeted foreign companies in mid-price segments. The combination of these factors accounts for the peculiarly Chinese upgrading experience. Neither the resources provided by a new version of the ‘developmental state’ nor domestic market growth alone can explain the Chinese players' success. Based on these results, and given that the emerging economies have become the most important markets for certain consumer goods – a development that (local) industrial policies for industrial upgrading can influence – we provide further proof that it is necessary to rethink the export-led upgrading paradigm in theories of globally dispersed production.

Suggested Citation

  • Ten Brink, Tobias & Butollo, Florian, 2018. "A great leap? Domestic market growth and local state support in the upgrading of China's LED lighting industry," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 18(2), pages 285-306.
    • Handle: RePEc:zbw:espost:259786
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/259786/1/Full-text-article-Butollo-et-al-A-great-leap.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Henry Wai-chung Yeung, 2014. "Governing the market in a globalizing era: Developmental states, global production networks and inter-firm dynamics in East Asia," Review of International Political Economy, Taylor & Francis Journals, vol. 21(1), pages 70-101, February.
    2. Shulin Gu & Bengt-Åke Lundvall & Ju Liu & Franco Malerba & Sylvia Schwaag Serger, 2009. "China's System and Vision of Innovation: An Analysis in Relation to the Strategic Adjustment and the Medium- to Long-Term S&T Development Plan (2006-20)," Industry and Innovation, Taylor & Francis Journals, vol. 16(4-5), pages 369-388.
    3. Gary Gereffi, 2014. "Global value chains in a post-Washington Consensus world," Review of International Political Economy, Taylor & Francis Journals, vol. 21(1), pages 9-37, February.
    4. Yohanes Kadarusman & Khalid Nadvi, 2013. "Competitiveness and Technological Upgrading in Global Value Chains: Evidence from the Indonesian Electronics and Garment Sectors," European Planning Studies, Taylor & Francis Journals, vol. 21(7), pages 1007-1028, July.
    5. Brandt, Loren & Thun, Eric, 2010. "The Fight for the Middle: Upgrading, Competition, and Industrial Development in China," World Development, Elsevier, vol. 38(11), pages 1555-1574, November.
    6. Wan-Wen Chu, 2011. "How the Chinese government promoted a global automobile industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 20(5), pages 1235-1276, October.
    7. Tain-Jy Chen & Ying-Hua Ku, 2014. "Indigenous innovation vs. teng-long huan-niao: policy conflicts in the development of China’s flat panel industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 23(6), pages 1445-1467.
    8. Yong-Sook Lee & Inhye Heo & Hyungjoo Kim, 2014. "The role of the state as an inter-scalar mediator in globalizing liquid crystal display industry development in South Korea," Review of International Political Economy, Taylor & Francis Journals, vol. 21(1), pages 102-129, February.
    9. Zhou, Yu, 2008. "Synchronizing Export Orientation with Import Substitution: Creating Competitive Indigenous High-Tech Companies in China," World Development, Elsevier, vol. 36(11), pages 2353-2370, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Butollo, Florian & Gereffi, Gary & Yang, Chun & Krzywdzinski, Martin, 2022. "Digital transformation and value chains: Introduction," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 22(4), pages 585-594.
    2. Godfrey Yeung, 2024. "Competitive dynamics of lead firms and their systems suppliers in the automotive industry," Environment and Planning A, , vol. 56(2), pages 454-475, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hamilton-Hart, Natasha & Stringer, Christina, 2016. "Upgrading and exploitation in the fishing industry: Contributions of value chain analysis," Marine Policy, Elsevier, vol. 63(C), pages 166-171.
    2. Keun Lee & Di Qu & Zhuqing Mao, 2021. "Global Value Chains, Industrial Policy, and Industrial Upgrading: Automotive Sectors in Malaysia, Thailand, and China in Comparison with Korea," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(2), pages 275-303, April.
    3. Henry Wai-chung Yeung & Neil M. Coe, 2015. "Toward a Dynamic Theory of Global Production Networks," Economic Geography, Clark University, vol. 91(1), pages 29-58, January.
    4. Prud’homme, Dan, 2016. "Dynamics of China’s provincial-level specialization in strategic emerging industries," Research Policy, Elsevier, vol. 45(8), pages 1586-1603.
    5. Alexander Dodge, 2020. "The Singaporean natural gas hub: reassembling global production networks and markets in Asia [Powerful assemblages?]," Journal of Economic Geography, Oxford University Press, vol. 20(5), pages 1241-1262.
    6. Brandt, Loren & Thun, Eric, 2016. "Constructing a Ladder for Growth: Policy, Markets, and Industrial Upgrading in China," World Development, Elsevier, vol. 80(C), pages 78-95.
    7. Ronaldo Parente & Marne Melo & Daniel Andrews & Arun Kumaraswamy & Flavio Vasconcelos, 2021. "Public sector organizations and agricultural catch-up dilemma in emerging markets: The orchestrating role of Embrapa in Brazil," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(4), pages 646-670, June.
    8. Henry Wai-chung Yeung, 2015. "Regional development in the global economy: A dynamic perspective of strategic coupling in global production networks," Regional Science Policy & Practice, Wiley Blackwell, vol. 7(1), pages 1-23, March.
    9. Daniel Poon, 2014. "China’s Development Trajectory: A Strategic Opening for Industrial Policy in the South," UNCTAD Discussion Papers 218, United Nations Conference on Trade and Development.
    10. Wade, Robert H., 2018. "The developmental state: dead or alive?," LSE Research Online Documents on Economics 87356, London School of Economics and Political Science, LSE Library.
    11. Scott R Stephenson & John A Agnew, 2016. "The work of networks: Embedding firms, transport, and the state in the Russian Arctic oil and gas sector," Environment and Planning A, , vol. 48(3), pages 558-576, March.
    12. Jan Fagerberg & Bengt-Åke Lundvall & Martin Srholec, 2018. "Global Value Chains, National Innovation Systems and Economic Development," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 533-556, July.
    13. Gopalan, Sasidaran & Reddy, Ketan & Sasidharan, Subash, 2022. "Does digitalization spur global value chain participation? Firm-level evidence from emerging markets," Information Economics and Policy, Elsevier, vol. 59(C).
    14. Can Huang & Naubahar Sharif, 2016. "Global technology leadership: The case of China," Science and Public Policy, Oxford University Press, vol. 43(1), pages 62-73.
    15. Hammoudeh, Shawkat & Tiwari, Aviral Kumar & Abakah, Emmanuel Joel Aikins & Adeabah, David, 2023. "Global value chains in sub-Saharan Africa: The role of business regulations, policies and institutions," Emerging Markets Review, Elsevier, vol. 57(C).
    16. Ayako Ebata & Hayley MacGregor & Michael Loevinsohn & Khine Su Win & Alexander W. Tucker, 0. "Value Chain Governance, Power and Negative Externalities: What Influences Efforts to Control Pig Diseases in Myanmar?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 0, pages 1-22.
    17. Stefan Pahl & Marcel P. Timmer, 2020. "Do Global Value Chains Enhance Economic Upgrading? A Long View," Journal of Development Studies, Taylor & Francis Journals, vol. 56(9), pages 1683-1705, July.
    18. Danai Christopoulou & Nikolaos Papageorgiadis & Chengang Wang & Georgios Magkonis, 2021. "IPR Law Protection and Enforcement and the Effect on Horizontal Productivity Spillovers from Inward FDI to Domestic Firms: A Meta-analysis," Management International Review, Springer, vol. 61(2), pages 235-266, April.
    19. White, David J. & Hubacek, Klaus & Feng, Kuishuang & Sun, Laixiang & Meng, Bo, 2018. "The Water-Energy-Food Nexus in East Asia: A tele-connected value chain analysis using inter-regional input-output analysis," Applied Energy, Elsevier, vol. 210(C), pages 550-567.
    20. Jana M. Kleibert & Laura Mann, 2020. "Capturing Value amidst Constant Global Restructuring? Information-Technology-Enabled Services in India, the Philippines and Kenya," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(4), pages 1057-1079, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:espost:259786. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zbwkide.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.