IDEAS home Printed from https://ideas.repec.org/a/bla/chinae/v18y2010i6p109-126.html
   My bibliography  Save this article

Global Production Network and the Upgrading of China's Integrated Circuit Industry

Author

Listed:
  • Ling Chen
  • Lan Xue

Abstract

Using an analytical framework of the global production network (GPN), the present paper examines the external environment and the internal dynamics of China s integrated circuit (IC) industry. We analyze the transition of China s IC industry from a state‐led integrated device manufacturers' model to deeper integration into the GPN. We also explore the technological sources, the upgrading dynamics as well as the positioning of different nodes of China s IC industry in the GPN. We conclude that the “East Asia model” of gradual industrial upgrading might not apply anymore in the new era of GPN. High‐technology industries can now be upgraded based on a parallel evolution model. Policy implications for China's high‐technology industrial upgrading strategies are drawn from our analysis.

Suggested Citation

  • Ling Chen & Lan Xue, 2010. "Global Production Network and the Upgrading of China's Integrated Circuit Industry," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 18(6), pages 109-126, November.
  • Handle: RePEc:bla:chinae:v:18:y:2010:i:6:p:109-126
    DOI: 10.1111/j.1749-124X.2010.01223.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1749-124X.2010.01223.x
    Download Restriction: no

    File URL: https://libkey.io/10.1111/j.1749-124X.2010.01223.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Dieter Ernst & Boy Luethje, 2003. "Global Production Networks, Innovation, and Work: Why Chip and System Design in the IT Industry are Moving to Asia," Economics Study Area Working Papers 63, East-West Center, Economics Study Area.
    2. G. M.P. Swann, 2009. "The Economics of Innovation," Books, Edward Elgar Publishing, number 13211.
    3. Neil M. Coe & Peter Dicken & Martin Hess, 2008. "Introduction: global production networks—debates and challenges," Journal of Economic Geography, Oxford University Press, vol. 8(3), pages 267-269, May.
    4. Steinfeld, Edward S., 2004. "China's Shallow Integration: Networked Production and the New Challenges for Late Industrialization," World Development, Elsevier, vol. 32(11), pages 1971-1987, November.
    5. Dieter Ernst, 2005. "Complexity And Internationalisation Of Innovation — Why Is Chip Design Moving To Asia?," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 9(01), pages 47-73.
    6. John Humphrey & Hubert Schmitz, 2002. "How does insertion in global value chains affect upgrading in industrial clusters?," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 1017-1027.
    7. Ernst, Dieter & Kim, Linsu, 2002. "Global production networks, knowledge diffusion, and local capability formation," Research Policy, Elsevier, vol. 31(8-9), pages 1417-1429, December.
    8. Annalee Saxenian, 2002. "Transnational Communities and the Evolution of Global Production Networks: The Cases of Taiwan, China and India," Industry and Innovation, Taylor & Francis Journals, vol. 9(3), pages 183-202.
    9. Pari Patel & Keith Pavitt, 1991. "Large Firms in the Production of the World’s Technology: An Important Case of “Non-Globalisation”," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(1), pages 1-21, March.
    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. Kang Wu & Jingxian Tang & Ying Long, 2019. "Delineating the Regional Economic Geography of China by the Approach of Community Detection," Sustainability, MDPI, vol. 11(21), pages 1-18, October.
    2. Yun Liu & Zhe Yan & Yijie Cheng & Xuanting Ye, 2018. "Exploring the Technological Collaboration Characteristics of the Global Integrated Circuit Manufacturing Industry," Sustainability, MDPI, vol. 10(1), pages 1-23, January.
    3. Sinkovics, Noemi & Liu, Chia-Ling (Eunice) & Sinkovics, Rudolf R. & Mudambi, Ram, 2021. "The dark side of trust in global value chains: Taiwan’s electronics and IT hardware industries," Journal of World Business, Elsevier, vol. 56(4).
    4. Valentina De Marchi & Matthew Alford, 2022. "State policies and upgrading in global value chains: A systematic literature review," Journal of International Business Policy, Palgrave Macmillan, vol. 5(1), pages 88-111, March.
    5. Yuping Deng & Yanrui Wu & Helian Xu, 2019. "Environmental Regulation and Export Product Quality: Evidence from Chinese Firms," Economics Discussion / Working Papers 19-14, The University of Western Australia, Department of Economics.

    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. Yi Liu & Yutian Liang & Shiping Ma & Kaixuan Huang, 2017. "Divergent Developmental Trajectories and Strategic Coupling in the Pearl River Delta: Where Is a Sustainable Way of Regional Economic Growth?," Sustainability, MDPI, vol. 9(10), pages 1-15, October.
    2. Iris Claus & Les Oxley & Peilei Fan, 2014. "Innovation In China," Journal of Economic Surveys, Wiley Blackwell, vol. 28(4), pages 725-745, September.
    3. Petr Pavlínek, 2012. "The Internationalization of Corporate R&D and the Automotive Industry R&D of East-Central Europe," Economic Geography, Clark University, vol. 88(3), pages 279-310, July.
    4. Linqing Liu & Shiye Mei, 2016. "Visualizing the GVC research: a co-occurrence network based bibliometric analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 109(2), pages 953-977, November.
    5. Maleki, Ali & Rosiello, Alessandro, 2019. "Does knowledge base complexity affect spatial patterns of innovation? An empirical analysis in the upstream petroleum industry," Technological Forecasting and Social Change, Elsevier, vol. 143(C), pages 273-288.
    6. 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.
    7. Charlotte Keijser & Michiko Iizuka, 2018. "Looking Beyond Global Value Chains in Capacity Development: The Case of the IT-Enabled Service (ITES) Sector in South Africa," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 442-461, July.
    8. Dutta, Sourish, 2017. "Mechanics of Global Value chains: India’s Perspective," EconStor Preprints 235156, ZBW - Leibniz Information Centre for Economics.
    9. John W. Medcof, 2007. "Subsidiary Technology Upgrading and International Technology Transfer, with Reference to China," Asia Pacific Business Review, Taylor & Francis Journals, vol. 13(3), pages 451-469, July.
    10. Pleticha, Petr, 2021. "Who Benefits from Global Value Chain Participation? Does Functional Specialization Matter?," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 291-299.
    11. Chun Yang & Haifeng Liao, 2010. "Backward Linkages Of Cross‐Border Production Networks Of Taiwanese Pc Investment In The Pearl River Delta, China," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 101(2), pages 199-217, April.
    12. Ascani, Andrea & Bettarelli, Luca & Resmini, Laura & Balland, Pierre-Alexandre, 2020. "Global networks, local specialisation and regional patterns of innovation," Research Policy, Elsevier, vol. 49(8).
    13. Shengjun Zhu & Canfei He, 2016. "Global and local governance, industrial and geographical dynamics: A tale of two clusters," Environment and Planning C, , vol. 34(8), pages 1453-1473, December.
    14. Jan van der Borg & Erwin van Tuijl, 2011. "Upgrading of Symbolic and Synthetic Knowledge Bases: Analysis of the Architecture, Engineering and Construction industry and the Automotive Industry in China," Working Papers 2011_25, Department of Economics, University of Venice "Ca' Foscari".
    15. Daria Taglioni & Deborah Winkler, 2016. "Making Global Value Chains Work for Development," World Bank Publications - Books, The World Bank Group, number 24426, December.
    16. Lema, Rasmus & Quadros, Ruy & Schmitz, Hubert, 2015. "Reorganising global value chains and building innovation capabilities in Brazil and India," Research Policy, Elsevier, vol. 44(7), pages 1376-1386.
    17. Ke Ding & Jiutang Pan, 2014. "The shanzhai cell phone: platforms and small business dynamics," Chapters, in: Mariko Watanabe (ed.), The Disintegration of Production, chapter 4, pages 101-126, Edward Elgar Publishing.
    18. Contreras, Oscar F. & Carrillo, Jorge & Alonso, Jorge, 2012. "Local Entrepreneurship within Global Value Chains: A Case Study in the Mexican Automotive Industry," World Development, Elsevier, vol. 40(5), pages 1013-1023.
    19. Suder, Gabriele & Liesch, Peter W. & Inomata, Satoshi & Mihailova, Irina & Meng, Bo, 2015. "The evolving geography of production hubs and regional value chains across East Asia: Trade in value-added," Journal of World Business, Elsevier, vol. 50(3), pages 404-416.
    20. Liena Kano & Eric W. K. Tsang & Henry Wai-chung Yeung, 2020. "Global value chains: A review of the multi-disciplinary literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 577-622, June.

    More about this item

    Statistics

    Access and download statistics

    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:bla:chinae:v:18:y:2010:i:6:p:109-126. 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: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/iwepacn.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.