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Are electronics firms in Malaysia catching up in the technology ladder?

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  • Rajah Rasiah

Abstract

Using the technological capability methodology, this paper examines the development of technological capabilities and economic performance in a sample of electronics firms in Malaysia. The technological capabilities improved significantly in both the broader category of electronics and in the specialized category of semiconductors as firms upgraded to participate in the higher levels of knowledge intensities. However, the incidence of participation of firms in the highest levels of five and six knowledge-intensity activities was very low, which has slowed down labour productivity growth in the industry. The statistical results show that technological deepening through increments in skills and research and development personnel will raise labour productivity in the industry significantly. Hence, the paper argues that government policy should stimulate firms’ participation in frontier innovation activities to quicken technological catch-up and productivity growth.

Suggested Citation

  • Rajah Rasiah, 2010. "Are electronics firms in Malaysia catching up in the technology ladder?," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 15(3), pages 301-319.
    • Handle: RePEc:taf:rjapxx:v:15:y:2010:i:3:p:301-319
    DOI: 10.1080/13547860.2010.494910
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    1. Paulo N. Figueiredo, 2001. "Technological Learning and Competitive Performance," Books, Edward Elgar Publishing, number 2373.
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    Cited by:

    1. Rajah Rasiah & Yap Xiao Shan & Yap Su Fei, 2015. "Sticky Spots on Slippery Slopes: The Development of the Integrated Circuits Industry in Emerging East Asia," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 7(1), pages 52-79, April.
    2. 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.
    3. Patarapong INTERAKUMNERD & Kriengkrai TECHAKANONT, 2015. "Intra-industry Trade, Product Fragment," Working Papers DP-2015-10, Economic Research Institute for ASEAN and East Asia (ERIA).
    4. Yansheng LI & Xin Xin KONG & Miao ZHANG, 2015. "Industrial Upgrading in Global Production Networks: The Case of the Chinese Automotive Industry," Working Papers DP-2015-07, Economic Research Institute for ASEAN and East Asia (ERIA).
    5. ADBI, Asian Development Bank Institute & OECD, Organisation for Economic Co-operation and Developmen (ed.), 2019. "Building Partnerships for Effectively Managing Labor Migration: Lessons from Asian Countries," ADBI Books, Asian Development Bank Institute, number 2, Décembre.
    6. Pranav N. Desai, 2013. "Export Innovation System: Changing Structure of India’s Technology-Intensive Exports," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 5(3), pages 21-52, October.
    7. Xin Xin KONG & Miao ZHANG & Santha Chenayah RAMU, 2015. "China's Semiconductor Industry in Global Value Chains," Working Papers DP-2015-15, Economic Research Institute for ASEAN and East Asia (ERIA).
    8. Rajah Rasiah & Yap Xiao Shan, 2016. "Institutional support, regional trade linkages and technological capabilities in the semiconductor industry in Malaysia," Asia Pacific Business Review, Taylor & Francis Journals, vol. 22(1), pages 165-179, January.
    9. Vanthana NOLINTHA & Idris JAJRI, 2015. "The Garment Industry in Laos: Technological Capabilities, Global Production Chains and Competitiveness," Working Papers DP-2015-13, Economic Research Institute for ASEAN and East Asia (ERIA).
    10. Achareeya Nawan & Patarapong Intarakumnerd, 2013. "Interaction between Host Countries’ Innovation Systems and Investment Strategies of Transnational Corporations: A Case Study of a US-based Conglomerate," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 5(2), pages 131-154, July.
    11. Patarapong INTARAKUMNERD & Pun-Arj CHAIRATANA & Preeda CHAYANAJIT, 2015. "Institutional Support, Technological Capabilities and Domestic Linkages in the Semiconductor Industry in Singapore," Working Papers DP-2015-18, Economic Research Institute for ASEAN and East Asia (ERIA).
    12. Chuc Dinh Nguyen & Anh Ngoc Nguyen & Trang Ha Nguyen & Minh Ngoc Nguyen, 2017. "Host-site institutions, regional production linkages and technological upgrading: a study of automotive firms in vietnam," Asia Pacific Business Review, Taylor & Francis Journals, vol. 23(3), pages 438-453, May.
    13. Ramani, Shyama V. & Urias, Eduardo, 2018. "When access to drugs meets catch-up: Insights from the use of CL threats to improve access to ARV drugs in Brazil," Research Policy, Elsevier, vol. 47(8), pages 1538-1552.
    14. Patarapong Intarakumnerd & Pun-Arj Chairatana & Preeda Chaiyanajit, 2016. "Global production networks and host-site industrial upgrading: the case of the semiconductor industry in Thailand," Asia Pacific Business Review, Taylor & Francis Journals, vol. 22(2), pages 289-306, April.
    15. Rajah Rasiah & Yap Xiao Shan, 2016. "Institutional support, technological capabilities and domestic linkages in the semiconductor industry in Singapore," Asia Pacific Business Review, Taylor & Francis Journals, vol. 22(1), pages 180-192, January.
    16. Muhammad Imran Qureshi & Rajah A/l Rasiah & Basheer M. Al-Ghazali & Maqsood Haider & Hanifah Jambari & Iswan & Sasmoko, 2019. "Modeling Work Practices under Socio-Technical Systems for Sustainable Manufacturing Performance," Sustainability, MDPI, vol. 11(16), pages 1-19, August.
    17. Antonio Angelino, 2017. "Human capital shortages in the Vietnamese industry. A firm-level analysis," Working Papers 1701, c.MET-05 - Centro Interuniversitario di Economia Applicata alle Politiche per L'industria, lo Sviluppo locale e l'Internazionalizzazione.
    18. Rajah Rasiah & Jebamalai Vinanchiarachi, 2013. "Institutional Support and Technological Upgrading: Evidence from Dynamic Clusters in Latin America and Asia," World Economic Review, World Economics Association, vol. 2013(2), pages 1-24, February.
    19. Francis E. Hutchinson & Leo van Grunsven, 2018. "Industry dynamics in Growth Triangles: the E&E industry in SIJORI 25 years on," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 32(2), pages 42-63, November.
    20. Khorasanizadeh, Hasti & Parkkinen, Jussi & Parthiban, Rajendran & David Moore, Joel, 2015. "Energy and economic benefits of LED adoption in Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 629-637.
    21. Loke Wei Kit & Noor Hidayah Binti Abu, 2017. "Analyzing the Impact of Knowledge Management on Technological Innovation: An Empirical Study of Electrical and Electronics Industry in Malaysia," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(7), pages 640-648, July.
    22. Rajah RASIAH, 2013. "Stimulating Innovation in ASEAN Institutional Support, R&D Activity and Intellectual Property Rights," Working Papers DP-2013-28, Economic Research Institute for ASEAN and East Asia (ERIA).

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