A Divergent Path of Industrial Upgrading: Emergence and Evolution of the Mobile Handset Industry in China
Starting from almost null in the late 1990s, China's mobile phone handset industry has grown to account for more than 40 percent of the current world production. While export growth has been overwhelmingly led by multi-national corporations (MNCs), increasingly fierce competition in the domestic market ignited by the advent of local handset makers has induced unique industrial evolution: (1) outgrowth of independent design houses specialized in handset development and (2) emergence of IC fabless ventures that design core ICs for handsets. In the background of this evolutionary industrial growth there are factors such as, the scale and increasing diversity of China's domestic market that advantages local firms vis-a-vis MNCs; modularization of handset and semiconductor technologies; policy interventions that supports local startups. The emergence and evolution of China's handset industry is likely to have international implications as the growth of the global demand for low-cost and multi-function mobile phone handsets is expected to accelerate. Thus, our case suggests that the conventional view of latecomer industrialization and upgrading that emphasizes the key role of international production networks organized by MNCs needs to be modified in order to accommodate China's rise into perspective.
|Date of creation:||Oct 2007|
|Publication status:||Published in IDE Discussion Paper. No. 125. 2007.10|
|Contact details of provider:|| Postal: 3-2-2 Wakaba, Mihama-ku, Chiba-shi, Chiba 261-8545|
Web page: http://www.ide.go.jp/
More information through EDIRC
|Order Information:|| Postal: Publication Office, IDE 3-2-2 Wakaba, Mihama-ku, Chiba-shi, Chiba 261-8545 JAPAN|
Web: http://www.ide.go.jp/English/Publish/Order Email:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dieter Ernst & Paolo Guerrieri, 1998.
"International production networks and changing trade patterns in East Asia: The case of the electronics industry,"
Oxford Development Studies,
Taylor & Francis Journals, vol. 26(2), pages 191-212.
- Dieter Ernst & Paolo Guerrieri, 1997. "International Production Networks And Changing Trade Patterns In East Asia The Case Of The Electronics Industry," DRUID Working Papers 97-7, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Ernst, Dieter & Guerrieri, Paolo, 1998. "International Production Networks and Changing Trade Patterns in East Asia: The Case of the Electronics Industry," UCAIS Berkeley Roundtable on the International Economy, Working Paper Series qt3f55c124, UCAIS Berkeley Roundtable on the International Economy, UC Berkeley.
- Hobday, Mike, 1995. "East Asian latecomer firms: Learning the technology of electronics," World Development, Elsevier, vol. 23(7), pages 1171-1193, July.
- Imai, Ken'ichi, 2006. "Explaining the Persistence of State-ownership in China," IDE Discussion Papers 64, Institute of Developing Economies, Japan External Trade Organization(JETRO). Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:jet:dpaper:dpaper125. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marie Kobayashi)
If references are entirely missing, you can add them using this form.