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Electronics Contract Manufacturing: Global Production and the International Division of Labor in the Age of the Internet


  • Boy Luthje


The paper examines recent developments in the international division of labor in the electronics industry resulting from the emergence of electronics contract manufacturing. The transnational production networks of major contract manufacturers are analyzed before the background of the seminal shift to vertical specialization in the information technology industry, as epitomized by the "Wintelist" model of competition and technology development. The author discusses the development of contract manufacturing in the USA and Germany and in low-cost locations in Southeast Asia, Mexico, and Eastern Europe, and the possible impact of e-commerce-based supplier relationships on international knowledge diffusion and local capability formation.

Suggested Citation

  • Boy Luthje, 2002. "Electronics Contract Manufacturing: Global Production and the International Division of Labor in the Age of the Internet," Industry and Innovation, Taylor & Francis Journals, vol. 9(3), pages 227-247.
  • Handle: RePEc:taf:indinn:v:9:y:2002:i:3:p:227-247 DOI: 10.1080/1366271022000034471

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    References listed on IDEAS

    1. Christian Longhi, 1999. "Networks, Collective Learning and Technology Development in Innovative High Technology Regions: The Case of Sophia-Antipolis," Regional Studies, Taylor & Francis Journals, vol. 33(4), pages 333-342.
    2. Malerba, Franco, et al, 1999. "'History-Friendly' Models of Industry Evolution: The Computer Industry," Industrial and Corporate Change, Oxford University Press, vol. 8(1), pages 3-40, March.
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    Cited by:

    1. Leonhard Plank & Cornelia Staritz, 2013. "‘Precarious upgrading’ in electronics global production networks in Central and Eastern Europe: the cases of Hungary and Romania," Brooks World Poverty Institute Working Paper Series ctg-2013-31, BWPI, The University of Manchester.
    2. Martin Srholec, 2007. "High-Tech Exports from Developing Countries: A Symptom of Technology Spurts or Statistical Illusion?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 143(2), pages 227-255, July.
    3. Lo, Chu-Ping & Wu, Shih-Jye & Hsu, Su-Ying, 2014. "The role of overseas Chinese-speaking regions in global sourcing," China Economic Review, Elsevier, vol. 30(C), pages 133-142.
    4. Vincent Frigant, 2007. "L'impact de la production modulaire sur l'approfondissement de la Division Internationale des Processus Productifs (DIPP)," Revue d'économie politique, Dalloz, vol. 117(6), pages 937-961.
    5. Byron Gangnes & Ari Van Assche, 2004. "Modular Production Networks in Electronics: The Nexus between Management and Economics Research," Working Papers 200405, University of Hawaii at Manoa, Department of Economics.
    6. Vincent Frigant, 2007. "Between Internationalisation and Proximity: the internationalisation process of automotive first tier suppliers," Post-Print hal-00257463, HAL.
    7. Maris CORIS (GREThA UMR CNRS 5113) & Vincent FRIGANT (GREThA UMR CNRS 5113) & Jean-Bernard LAYAN (GREThA UMR CNRS 5113) & Damien TALBOT (GREThA UMR CNRS 5113), 2009. "Spatial dynamics of firms (In French)," Cahiers du GREThA 2009-20, Groupe de Recherche en Economie Théorique et Appliquée.

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