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

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  • Dieter Ernst

    (Economics Study Area, East-West Center)

Abstract

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.

Suggested Citation

  • Dieter Ernst, 2003. "How Sustainable are Benefits from Global Production Networks? Malaysia's Upgrading Prospects in the Electronics Industry," Economics Study Area Working Papers 57, East-West Center, Economics Study Area.
    • Handle: RePEc:ewc:wpaper:wp57
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    File URL: http://www.eastwestcenter.org/fileadmin/stored/pdfs/ECONwp057.pdf
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    Cited by:

    1. Fucai Lu & Wei He & Yang Cheng & Sihua Chen & Liang Ning & Xiaoan Mei, 2015. "Exploring the Upgrading of Chinese Automotive Manufacturing Industry in the Global Value Chain: An Empirical Study Based on Panel Data," Sustainability, MDPI, vol. 7(5), pages 1-23, May.
    2. Dieter Ernst, 2004. "Searching for a New Role in East Asian Regionlization: Japanese Production Networks in the Electronics Industry," Economics Study Area Working Papers 68, East-West Center, Economics Study Area.
    3. 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.
    4. Boy Luethje, 2004. "Global Production Networks and Industrial Upgrading in China: The Case in Electronics Contract Manufacturing," Economics Study Area Working Papers 74, East-West Center, Economics Study Area.
    5. Kang, Moonsung & Kim, Hyuk Hwang & Lee, Hongshik & Lee, Joonhyung, 2010. "Regional production networks, service offshoring, and productivity in East Asia," Japan and the World Economy, Elsevier, vol. 22(3), pages 206-216, August.

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