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Technological Maturity and Development without Research: The Challenge for Malaysian Manufacturing
Author(s) -
Narayanan Suresh,
Wah Lai Yew
Publication year - 2000
Publication title -
development and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.267
H-Index - 93
eISSN - 1467-7660
pISSN - 0012-155X
DOI - 10.1111/1467-7660.00161
Subject(s) - maturity (psychological) , business , investment (military) , sustainability , indigenous , industrial organization , production (economics) , technological change , manufacturing sector , economics , political science , international economics , ecology , macroeconomics , politics , law , biology
Propelled largely by direct investment via multinationals, Malaysia’s manufacturing sector has grown rapidly and is changing its output‐mix. In 1992, the share of high‐tech products in Malaysian manufacturing exceeded that of Japan, Korea or Taiwan. However, this ‘maturity’ was acquired without a strong research base. This article provides a framework which looks at the role of research and development (R&D) in conferring technological maturity and assesses the progress Malaysian manufacturing has made in this regard. The authors find that while multinationals have transferred many aspects of production, they have been slow in transferring R&D expertise. Neither has indigenous innovation filled this gap. Consequently, the long‐term sustainability of the industrial transformation process in Malaysia is in jeopardy. The article concludes with suggestions for corrective policies.