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How Sustainable are Benefits from Global Production Networks? Malaysia's Upgrading Prospects in the Electronics Industry

  • Dieter Ernst


    (Economics Study Area, East-West Center)

The paper introduces an operational definition of industrial upgrading (IU and documents the emergence of complex, multi-tier "networks of networks" which provide new opportunities for IU, but which also raise threshold requirements for participating in these networks. I highlight structural weaknesses of the Malaysian electronics industry that constrain its upgrading prospects; assess current policies that try to link cluster development and global network integration; discuss adjustments in linkages with global brand leaders (OEMs); and ask to what degree linkages with contract manufacturers (CMs) can broaden network benefits. The paper concludes, by exploring new opportunities for international knowledge sourcing that could complement Malaysia's linkages with GPNs. A completely revised and updated version has been published as: "Global Production Networks and Industrial Upgrading -Malaysia's Electronics Industry", in: J. Kidd and F.J. Richter, eds., Trust and Anti-Trust in Cross-Cultural Alliances, published for the World Economic Forum, Palgrave, London, 2003.

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Paper provided by East-West Center, Economics Study Area in its series Economics Study Area Working Papers with number 57.

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Length: 34 pages
Date of creation: Jun 2003
Date of revision:
Handle: RePEc:ewc:wpaper:wp57
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