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The Electronics Industries of the Asia–Pacific: Exploiting International Production Networks for Economic Development

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  • Mike Hobday

Abstract

Although the electronics industry has been one of the main driving forces behind the export‐led growth of the newly industrialising economies (NIEs) of the Asia–Pacific, there has until recently been little empirical research showing how the various NIEs managed to enter international markets and gain technology. This paper describes the overall characteristics of the electronics sector in the NIEs, highlighting the main organisational innovations which have enabled local firms to enter international markets and acquire foreign technology. The OEM (original equipment manufacture) system, prevalent in East Asia, is contrasted with the TNC (transnational company)‐led growth dominant in Southeast Asia. The paper also discusses the emerging ‘contract electronics manufacturing’, or CEM, which could threaten traditional OEM and TNC‐subsidiary production in the NIEs. The electronics sector proves to be a rich source of empirical material, both for understanding the processes of economic development and for illustrating the role of latecomer enterprise in engaging with and exploiting international production networks.

Suggested Citation

  • Mike Hobday, 2001. "The Electronics Industries of the Asia–Pacific: Exploiting International Production Networks for Economic Development," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 15(1), pages 13-29, May.
    • Handle: RePEc:bla:apacel:v:15:y:2001:i:1:p:13-29
    DOI: 10.1111/1467-8411.00092
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    Cited by:

    1. Shan Jayasinghe & Lester W. Johnson & Nilan Udayanga & Lakshitha Kumarapperuma & Sanath Ranjitha, 2023. "Drivers Enabling Developing Countries to Enter High-Tech Production Networks through Global Production Sharing: Evidence from Malaysia, Taiwan, and Vietnam," Sustainability, MDPI, vol. 15(3), pages 1-16, January.
    2. Carney, Michael & Estrin, Saul & Liang, Zhixiang & Shapiro, Daniel, 2022. "Are Latin American business groups different? An exploratory international political economy perspective," LSE Research Online Documents on Economics 111821, London School of Economics and Political Science, LSE Library.
    3. Yurdagül Meral, 2019. "High technology export and high technology export impact on growth," International Journal of Business Ecosystem & Strategy (2687-2293), Bussecon International Academy, vol. 1(3), pages 32-38, July.
    4. René Belderbos & Jianglei Zou, 2006. "Foreign Investment, Divestment and Relocation by Japanese Electronics Firms in East Asia," Asian Economic Journal, East Asian Economic Association, vol. 20(1), pages 1-27, March.
    5. Prema-chandra Athukorala, 2011. "Growing with Global Production Sharing: The Tale of Penang Export Hub," Departmental Working Papers 2011-13, The Australian National University, Arndt-Corden Department of Economics.
    6. Sanjaya Lall & Manuel Albaladejo & Jinkang Zhang, 2004. "Mapping fragmentation: Electronics and automobiles in East Asia and Latin America," Oxford Development Studies, Taylor & Francis Journals, vol. 32(3), pages 407-432.
    7. Sandip SARKER & Arifuzzaman KHAN & Rezwan MAHMOOD, 2016. "Domestic Credit, School Enrollment & Hi-Tech Exports in Bangladesh," Romanian Economic Business Review, Romanian-American University, vol. 11(1), pages 7-23, March.
    8. Peter J. Buckley & Roger Strange & Marcel P. Timmer & Gaaitzen J. de Vries, 2020. "Catching-up in the global factory: Analysis and policy implications," Journal of International Business Policy, Palgrave Macmillan, vol. 3(2), pages 79-106, June.
    9. Yohanes Kadarusman, 2012. "Knowledge Acquisition: Lessons from Local and Global Interaction in the Indonesian Consumer Electronics Sector," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 4(2), pages 65-100, July.
    10. Hsien-Chen Lo & Ching-Yan Wu & Mei-Chih Hu, 2020. "Acting as an innovation niche seeder:how can the reverse salient of southeast Asian economies be overcome?," Journal of Evolutionary Economics, Springer, vol. 30(4), pages 1195-1217, September.
    11. Gerardo P. Sicat, 2004. "Reforming the Philippine Labor Market," UP School of Economics Discussion Papers 200404, University of the Philippines School of Economics.
    12. Saari, M. Yusof & Dietzenbacher, Erik & Los, Bart, 2015. "Sources of Income Growth and Inequality Across Ethnic Groups in Malaysia, 1970–2000," World Development, Elsevier, vol. 76(C), pages 311-328.
    13. Jui-Lung Chen & Chia-Chi Hsieh, 2021. "On Competitive Strategy from OEM to OBM - A Case Study on a Sealing Parts Company in Taiwan," Journal of Asian Business Strategy, Asian Economic and Social Society, vol. 11(2), pages 69-82, December.
    14. Hobday, Michael & Rush, Howard & Bessant, John, 2004. "Approaching the innovation frontier in Korea: the transition phase to leadership," Research Policy, Elsevier, vol. 33(10), pages 1433-1457, December.
    15. William Lazonick, 2006. "Corporate Governance, Innovative Enterprise, and Economic Development," WIDER Working Paper Series RP2006-71, World Institute for Development Economic Research (UNU-WIDER).
    16. Ho Yeon Kim & Toshitaka Gokan, 2011. "Theories on FDI and the Behavior of MNEs in East Asia," Chapters, in: Masahisa Fujita & Ikuo Kuroiwa & Satoru Kumagai (ed.), The Economics of East Asian Integration, chapter 5, Edward Elgar Publishing.
    17. Imai, Ken'ichi & Shiu, Jingming, 2007. "A Divergent Path of Industrial Upgrading: Emergence and Evolution of the Mobile Handset Industry in China," IDE Discussion Papers 125, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    18. Sungchul Cho & Up Lim, 2016. "The Sustainability of Global Chain Governance: Network Structures and Local Supplier Upgrading in Thailand," Sustainability, MDPI, vol. 8(9), pages 1-13, September.
    19. Chia‐Wen Lee & Roger Hayter & David W. Edgington, 2010. "Large And Latecomer Firms: The Taiwan Semiconductor Manufacturing Company And Taiwan'S Electronics Industry," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 101(2), pages 177-198, April.

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