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The systemic quad: technological capabilities and economic performance of computer and component firms in Penang and Johor, Malaysia

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  • Rajah Rasiah

Abstract

This paper draws on the work of growth pole, lead sector and industrial district, business school and evolutionary exponents to develop the systemic quad as a regional development model to explain differences in systemic support and impact on knowledge activities, technological capabilities, productivity and wages in computer and component firms in the states of Penang and Johor in Malaysia. The results show that Penang has enjoyed fairly strong development of basic infrastructure, network cohesion and integration in the world economy while Johor has achieved strong development only in the first pillar. Consequently, computer and component firms in Penang show higher technological capabilities and incidence of participation in knowledge-intensive activities than firms in Johor. Penang firms also enjoyed higher labour productivity and wages than Johor firms. However, because of poor high tech infrastructure, none of the firms are engaged in level six knowledge-intensive activities in both states.

Suggested Citation

  • Rajah Rasiah, 2007. "The systemic quad: technological capabilities and economic performance of computer and component firms in Penang and Johor, Malaysia," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 1(2), pages 179-203.
  • Handle: RePEc:ids:ijtlid:v:1:y:2007:i:2:p:179-203
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Rajah Rasiah & Jebamalai Vinanchiarachi & Padmanand Vadakkepat, 2014. "Catching-Up from Way Behind: How Timor-Leste Can Avoid the Dutch Disease?," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 6(1), pages 119-148, April.
    2. 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.
    3. Tin Htoo NAING & Yap Su FEI, 2015. "Multinationals, Technology and Regional Linkages in Myanmar's Clothing Industry," Working Papers DP-2015-14, Economic Research Institute for ASEAN and East Asia (ERIA).
    4. Rajah Rasiah & Nazia Nazeer, 2015. "The State of Manufacturing in Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, pages 205-224.
    5. Rene E. OFRENEO, 2015. "Auto and Car Parts Production: Can the Philippines Catch Up with Asia?," Working Papers DP-2015-09, Economic Research Institute for ASEAN and East Asia (ERIA).
    6. Seeku A. K. Jaabi & Rajah Rasiah, 2014. "Institutional Changes, Technological Capabilities and Fish Exports from Uganda and the Gambia," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 6(2), pages 55-78, July.
    7. Saha Dhevan Meyanathan, 2011. "Industrial Upgrading: Cluster Development in the Malaysian Electronics Industry," Chapters,in: Industrial Clusters, Upgrading and Innovation in East Asia, chapter 7 Edward Elgar Publishing.
    8. Rajah Rasiah & Nazia Nazeer, 2016. "Comparing Industrialization in Pakistan and the East Asian Economies," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, pages 167-192.

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