Localised Low-tech Learning in the Furniture Industry
AbstractIt is by now an established fact, that the so-called high technology industries have experienced growth rates way above average through most years. High technology industries share of the world manufacturers export has risen from 12 per cent in 1970 to 25 per cent in 1995. More than one-third of Japan's manufacturing export and more than 40 per cent of America's manufacturing export are products from high technology industries, and this development has increasingly led to an international obsession with high technology industries. In a number of countries R&D indicators have by now become the object of intense discussions. Great efforts are devoted to improve a bad relative standing. The aim of this paper is to questioned whether a national specialisation towards high technology industries is the only way by which the mature, developed countries can hope to sustain and augment their economic position. I claim that in contrast to much of the assumptions in contemporary politics and in the majority of the contemporary academic literature on the subject the countries without a specialisation in high technology industries are not left in the backwaters of economic development. Quite the contrary seems to be the case as many advanced, high-cost countries experience an above average economic performance even when specialising in the bottom end of the low-tech industries. The argument is illustrated with empirical material from the wooden furniture industry in general - and the rather successful Danish wooden furniture industry in particular. The possible reasons behind this apparent paradox are discussed.
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Bibliographic InfoPaper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number 96-11.
Date of creation: 1996
Date of revision:
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Web page: http://www.druid.dk/
International competitiveness; industrial clusters; wooden furniture industry; level of technology;
Find related papers by JEL classification:
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- L68 - Industrial Organization - - Industry Studies: Manufacturing - - - Appliances; Furniture; Other Consumer Durables
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
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