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Innovation cooperation between local embeddedness and global supply chains. The example of the regional innovation system in Penang, Malaysia. While locational competition in Asia is increasing, regional innovation systems within developing countries like Penang are facing the challenge to increase their technological capability. This question can be framed in innovation systems’ theoretical components like the role of innovation cooperation within spatial proximity, while the local embeddedness of multinational firms or at least of parts of their supply chains can foster technological capability development of local small and medium sized enterprises (SME) potentially. The technological capability in Penang turns out to be relatively low. The main activities among Penangs multinational firms are still focussed on assembly. The innovation system is dominated by multinationals and is externally controlled. Horizontal cooperation is the exception, while vertical and proprietary regimes are still dominant and so the scope for technological learning for local firms is limited.

zeitschrift für wirtschaftsgeographie

Innovationsverflechtungen zwischen lokaler Einbettung und globalen Wertschöpfungsketten: Das Beispiel des regionalen Innovationssystems Penang, Malaysia