Export-led Technology Development in the Four Dragons: The Case of Electronics

To date, little attention has been paid to the strategies of local firms in bringing about industrialization in Bast Asia. This article focuses on the methods by which domestic firms utilized foreign connections to overcome technology and market barriers in electronics. A simple market-technology model is developed as a first approximation of how domestic technology assimilation relates to export marketing in the four ‘Dragons' of East Asia (South Korea, Taiwan, Hong Kong and Singapore). It proposes that export demand shaped the pace and pattern of technological progress in electronics in each of the four Dragons. Historical evidence shows that each country used a distinctive mix of direct and indirect export mechanisms to acquire technology and to enter international markets. Foreign buyers, transnational corporations (TNCs), original equipment manufacturer (OEM) arrangements, joint ventures and licensing deals were exploited by ‘latecomer’ firms to their market and technology advantage. Asian firms progressed from simple assembly tasks to more sophisticated product design and development capabilities, travelling ‘backwards' along the product life cycle of traditional innovation models. Today, leading Asian firms invest heavily in R&D and engage in partnerships with TNCs to acquire and develop advanced new electronics technologies. The technological progress of latecomers remains closely coupled to export demand through OEM and other institutional arrangements.     

Examining the Role of Geographical Proximity in a Cluster's Transformation Process: The Case of Taiwan's Machine Tool Industry

This paper examines the relationship between geographical proximity and a cluster's sustained dynamism with a specific focus on the role of geographical proximity in the transformation of cluster firms' production and learning organizations. Using Taiwan's machine tool cluster as an empirical case, this article studies the nature of various intra- and extra-cluster technological networks established by local firms to tackle the cluster's developmental inertia. In contrast to most recent studies that seem to consider geographical proximity less relevant to the sustained prosperity of incumbent clusters, our case study finds that geographical proximity continues to be a critical factor underlying agglomerated firms' capacity to maintain and explore diverse capabilities within and outside the clusters. On the one hand, co-location allows these firms and their coupled actors to experiment with a range of technological networks and organizational forms in the face of the changing competitive conditions. On the other hand, while the spatial boundaries of important technological networks in the cluster are not necessarily confined to the locality, we find that geographical proximity among networked members is the key to the emergence of and better governing over those crucial extra-cluster networks. In addition to responding to the call for empirical work exploring the relationships between geographical proximity and non-geographical proximity in knowledge creation and exchange, this article contributes to the cluster literature by providing evidence on the evolution of clusters and whether the advantages associated with geographical clustering persist over time.     

The Role of Knowledge Intermediaries in Developing Firm Learning Capabilities

Regional innovation systems (RISs) literature has emphasized the critical role of interactive learning and knowledge exchange amongst firms and a variety of spatially connected innovation institutions as the foundation of regional innovation. Knowledge intermediaries have been analysed in terms of the technology-transaction services they provide firms and/or knowledge producers such as universities and therefore the role they play in facilitating interaction within the RIS. However, innovation also depends on the capability of the firm to learn. Some studies have suggested that intermediaries also play a role in that regard as participation in intermediary knowledge transfer programmes can contribute to the development of firm capabilities for problem-solving and learning. Our research is based on two case study intermediary programmes involving interviews with facilitators and participants. Our data show that knowledge intermediaries affect organizational learning capabilities by impacting on firms' network relationships, internal and external communication channels and internal learning processes which in turn affect the ability to interpret and use knowledge within the firm. This suggests that the role of knowledge intermediaries might be greater than facilitating interactions in the innovation system, as knowledge intermediation may affect the ability of firms to learn and absorb knowledge from their environment.     

How Do Local Knowledge Spillovers and Experience Affect Export Performance?

This research paper tries to analyse the role that knowledge about foreign markets has in increasing firms' exports in clustered spaces. We consider two interrelated sources of this knowledge, a firm's direct experience and its indirect experience from other clustered firms. In particular, it is proposed that firms can improve their export performance by accessing others' knowledge as long as they have some previous direct experience that allows them to identify, understand and exploit these. Nevertheless, this positive influence of previous direct experience on exports continues only to a certain point, at which time it becomes less relevant or even negative. Firms with broad international experience have little to learn from local interactions, being more enriching establishing relationships with agents from outside the cluster. Empirical evidence gathered from wine producers located in La Rioja, Spain, confirms the moderating but decreasing importance of previous experience.     

Can Host Innovation Systems in Late Industrializing Countries Benefit from the Presence of Transnational Corporations? Insights from Thailand's Manufacturing Industry

Innovation systems in late industrializing countries are said to be ill-developed and fragmented, lacking crucial key resources and access to technology and knowledge. At the same time these national innovation systems (NISs) host subsidiaries of transnational corporations, which could contribute to the development of the NIS due to their advanced technology and capabilities. This paper considers data from innovation surveys, self-assessment of technological capabilities and qualitative interview information in order to establish two things: firstly, the technological activities and capabilities of foreign affiliates and domestic firms in Thailand (as compared to Singapore, Penang and Europe), and secondly, the main mechanisms by which foreign affiliates foster upgrading in domestic firms and in the innovation systems themselves.     

High-Tech Firms’ Location Considerations within the Metropolitan Regions and the Impact of Their Development Stages

The determinants of firms' location choice have changed over time, in particular in the high-tech industry. Few studies that investigate the factors that influence firms' location decision distinguish between firms in their early stages of life cycle and more established high-tech firms. This study identifies the considerations prioritized by high-tech firms in both categories in the process of choosing a location within a metropolitan region for establishing or relocating their business. The intra-metropolitan competition for high-tech plants was examined using data gathered through field surveys of managers of such firms in the Tel-Aviv metropolitan region. The findings shed light on the importance ascribed to internal and external factors in the decision on location made by the firms' managers.     

Public Policy and Emerging Sources of Technology and Technical Information Available to Industry

As technologies grow in complexity, firms often target their internal R&D resources on core competencies and utilize outside sources for supporting knowledge and technology. Where do firms turn to find such resources? This paper reports the perceptions of technology transfer managers in United States manufacturing firms toward federal and university labs and identifies the types of farms that are better positioned to utilize externally available technological resources. Based on replies from research-intensive companies within the United States, the authors find that larger firms with high research and development (R&D) budgets tend to ascribe greater significance to external sources than do smaller ones. Also, companies spending over $500 million in R&D rank universities the most significant external source of knowledge, followed by V S.-based firms, and then foreign firms.     

Shared Resources and Competitive Advantage in Clustered Firms: The Missing Link

This study examines the mechanism by which shared resources act on clustered firms' strategic resources to impact firm performance. Results indicate that five different kinds of cluster-specific shared resources have significant and positive effects on strategic resources to various degrees. Results also show that four elements of strategic resources have significant and positive effects on competitive advantage of firms. The framework developed in this study thus suggests that internal strategic resources and capabilities of firms mediate the relationship between shared resources and competitive advantage of firms in clusters.     

New venture high growth in high-tech environments

The aim of this article is to understand the triggering factors of new firm growth in high-tech environments (life science, knowledge-intensive business services [KIBS] and engineering) by studying a representative sample of high-growth Italian start-ups. Our empirical research uses the information gathered during direct interviews with managers through a semi-structured questionnaire, which was presented to 382 new Italian firms. Considering the characteristics of new firms, this article summarizes the key growth factors. Investment in acquiring new competencies both in technology and marketing, development of dynamic capabilities (investment in human resources and new routines) and access to external knowledge and information sources emerged as significant.     

Spatial distribution of innovation networks,technological competencies and degree of novelty in emerging economy firms

This paper analyses the relationship of the accumulation of technological competencies at the firm level, the spatial distribution of the firm's innovation networks and the degree of novelty of product innovation. Firm-based primary data collected in two innovative regions in emerging economies are used to predict higher degrees of novelty in emerging economy firms. Similarly to advanced economy firms, the results show that international linkages are associated with higher degrees of novelty. However, new-to-the-world innovation in emerging country firms is fundamentally externally driven, suggesting that international linkages seem to be a compensating mechanism for the initially lower technological capabilities rather than a complementary source of knowledge.     

The Role of Regional Policies in Promoting Networking and Innovative Activity: Evidence from Small Finnish High-tech Firms

The success of high-technology firms is strongly dependent on their innovation capacity and network relationships. There is a growing recognition that few firms are able to innovate in isolation. Cooperation can provide access to a complementary knowledge base and resources, and speed up the innovation process of firms. Regional developers are criticized for their inadequate ability to integrate themselves into the regional networks and innovation processes of firms and their ability to determine firms' needs for innovation and networking. The research topic of this study concentrates on the possibilities of regional developers of influencing the operational environment of high-tech firms through the development of networks and innovation activity of firms. Of particular interest are the micro-level policies and concrete actions by regional developers for meeting the needs of firms. The data used are based on interviews addressed to high-tech firms located in Jyväskylä Science Park in Finland.     

Complementarities Between Universities and Technology Institutes: New Empirical Lessons and Perspectives

This paper investigates the different roles played by universities and technology institutes (TIs) as innovation partners of firms. Comparing the characteristics of Spanish firms collaborating with these agents allows us to better define complementarities among the target groups of these organizations. Our findings show that those firms collaborating with universities are bigger, have higher internal capabilities and are less dependent on their external relationships while firms collaborating with TIs are smaller, have weaker internal capabilities but are more open to their environment and thus more reliant on external sources. We point to the implications of these findings for regional development. Universities have a role as partners of more technologically advanced firms. TIs, on the other hand, partner those firms, which though also quite advanced, require more external help in their innovation processes. These results should help policy-makers in the definition of more complex regional strategies and the provision of tools aimed at different goals. Managers of universities, TIs and client firms should find these results of help in developing more positive collaborations with one another.     

Firm Heterogeneity in Biotech: Absorptive Capacity,Strategies and Local-Regional Connections

This paper focuses on the characteristics of biotech firms with various levels of research and development (R&D) activity. It is done by exploring the relationship between R&D intensity, alliances and the extent of regionalization of firms' activities using evidence from a survey of US-based biotechnology firms. We profile two firm prototypes: research-oriented firms and product-oriented firms, focusing on their characteristics, strategies and operations. These include activities devoted to exploration and exploitation through alliances with universities (more exploration) and with pharmaceutical companies (exploration and exploitation), and locational needs which facilitate both exploration and exploitation.     

Asian Transnational Enterprises and Technology Transfer in Thailand

Like many of its neighbours, Thailand is increasingly interested in upgrading the technological capability of its indigenous firms through the inward investment (foreign direct investment, FDI) of transnational enterprises (TNEs). Its science and technology policies, however, remain fragmented, and they compete with regional distribution priorities. This paper examines the nature of technology transfer between Asian TNEs (Japan and the newly industrializing economies (NIEs), that is, the NIEs of Hong Kong, Singapore, South Korea and Taiwan) and Thai firms based on the responses of some 145 firms from a 2005 survey. It finds only modest levels of technological transfer in production and process technologies. Asian TNEs evaluate factor cost advantages and government incentives favourably. Logistic regressions, however, indicate that government incentives are negatively related to technology process modification between NIE subsidiaries and Thai customers. But, the technical training of Thai workers significantly increases the likelihood of Asian subsidiaries undertaking process technology transfers. Among NIE firms, the ability to import foreign skilled labour further increases the likelihood of such technological activities. Finally, forward linkages among the NIEs are positively associated with firm location in the urban agglomerations of Bangkok and Chon Buri, and, among smaller firms. Our study suggests that prevailing FDI policies have little influence on technology transfer, while technology policies that favour large TNEs work against smaller NIEs that are engaged in modest technology transfer.     

Technological Innovation in China's High-Tech Sector: Insights from a 2008 Survey of the Integrated Circuit Design Industry in Shanghai

An intensive investigation of China's high-tech sector led by a noted Hong Kong—based geographer examines the patterns of cooperation between firms and local governments (so-called "state-firm strategic resonance") as an alternative to knowledge spillover in an effort to explain why certain firms are more likely to innovate than others within an economic cluster. As a case study, they select the integrated circuit design industry (a key in the development of more efficient computing and thus a critical element of the digital revolution) in Shanghai, one of the most advanced metropolitan regions in China. A systematic analysis of firm-level data obtained inter alia from the authors' 2008 survey and interviews revealed a significant pattern of variation in innovation that could not be explained by inter-firm interactions in the process of industrial clustering. The authors argue that the uneven pattern of technological innovation is contingent on a state-built institutional and market environment designed to stimulate firms' innovative activities, and demonstrate how firms respond to that environment in a Chinese metropolis. Journal of Economic Literature, Classification Numbers: H700, L630, O310, P230, R280. 5 figures, 7 tables, 57 references.     

The rôle of transport in firms' spatial organization: evidence from the Spanish food processing industry

This paper explores the role of transport in the spatial organization of food processing firms in Spain. A framework is developed through the analysis of the various mechanisms by which transport affects firms, and the identification of key elements and recent trends in spatial firm organization. Empirical evidence from interviews suggests that with modern logistic strategies transport is becoming more important. In a time‐based competitive environment, transport plays an important role in efforts to reduce delivery times, and increase reliability and flexibility in deliveries, as well as customer responsiveness. Not only does transport influence firms' location decisions, but also by adjusting to transport improvements firms are found to reconfigure their spatial organization.     

权力集中化、生产片断化与全球价值链下本土产业的升级

全球领先企业的权力集中化和生产的片断化导致价值分配的非均衡,并进一步加剧了全球生产网络中权力结构的不对称。本文提出全球价值链上的权力是一种建立在战略资源基础上的不对称的话语权,并归纳了八种基本的市场权力形式。通过对全球十大工业制成品及服务业的市场份额分析,发现技术能力和品牌能力是全球领先企业市场权力集中的主要根源,也是决定全球价值链上价值分配的决定性因素。嵌入全球价值链有利于发展中国家的本土企业迅速提高生产能力、接近全球市场和技术通道,但是从生产能力到创新能力的升级过程并非自动发生;全球价值链生产片断化带来创新过程的垂直分离和重新整合,发展中国家产业升级的关键在于本土企业的吸收能力和学习速度。     

The Importance of Public Research Institutes in Innovative Networks-Empirical Results from the Metropolitan Innovation Systems Barcelona,Stockholm and Vienna

The recent discussion on economics and regional economics has increasingly stressed the importance of knowledge and information. Research institutes, in particular, are seen as crucial for assisting local firms in their innovation activities. The aim of this paper is to explore the real importance of research institutes supporting innovative activities in businesses. Based on the representative European Regional Innovation Survey the results show that the actual significance of research institutions in the support of firms' innovation processes is smaller than revealed in the concepts of the innovative networks, innovative milieu or learning region.     

Asia's century and the problem of Japan's centrality

Japan has long been regarded as a central component of America's grand strategy in Asia. Scholars and practitioners assume this situation will persist in the face of China's rise and, indeed, that a more ‘normal’ Japan can and should take on an increasingly central role in US‐led strategies to manage this power transition. This article challenges those assumptions by arguing that they are, paradoxically, being made at a time when Japan's economic and strategic weight in Asian security is gradually diminishing. The article documents Japan's economic and demographic challenges and their strategic ramifications. It considers what role Japan might play in an evolving security order where China and the US emerge as Asia's two dominant powers by a significant margin. Whether the US–China relationship is ultimately one of strategic competition or accommodation, it is argued that Japan's continued centrality in America's Asian grand strategy threatens to become increasingly problematic. It is posited that the best hope for circumventing this problem and its potentially destabilizing consequences lies in the nurturing of a nascent ‘shadow condominium’ comprising the US and China, with Japan as a ‘marginal weight’ on the US side of that arrangement.     

Dimensions of proximity in knowledge-based networks: The cases of investment banking and automobile design

The competitiveness of firms and regions is increasingly dependent on their capabilities to organise knowledge processes that unfold between different knowledge providers. In this article it is argued that this knowledge management in networks is a cognitive process that uses different dimensions of proximity. As much of the knowledge required is 'tacit' in character, 'embedded' social interaction becomes crucial. There are, however, conflicts of interest in business networks. The organisation of knowledge processes thus becomes a complex governance task that depends to a large extent on the characteristics of the learning processes of the sectors involved. This paper offers some empirical evidence from the service sector with the case of M&A activities and from the manufacturing sector with the case of automobile design.