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The Electronics Industries of the Asia–Pacific: Exploiting International Production Networks for Economic Development
Author(s) -
Hobday Mike
Publication year - 2001
Publication title -
asian‐pacific economic literature
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.232
H-Index - 21
eISSN - 1467-8411
pISSN - 0818-9935
DOI - 10.1111/1467-8411.00092
Subject(s) - original equipment manufacturer , electronics , production (economics) , international trade , business , industrial organization , east asia , commerce , economy , economics , engineering , china , computer science , political science , electrical engineering , law , macroeconomics , operating system
Although the electronics industry has been one of the main driving forces behind the export‐led growth of the newly industrialising economies (NIEs) of the Asia–Pacific, there has until recently been little empirical research showing how the various NIEs managed to enter international markets and gain technology. This paper describes the overall characteristics of the electronics sector in the NIEs, highlighting the main organisational innovations which have enabled local firms to enter international markets and acquire foreign technology. The OEM (original equipment manufacture) system, prevalent in East Asia, is contrasted with the TNC (transnational company)‐led growth dominant in Southeast Asia. The paper also discusses the emerging ‘contract electronics manufacturing’, or CEM, which could threaten traditional OEM and TNC‐subsidiary production in the NIEs. The electronics sector proves to be a rich source of empirical material, both for understanding the processes of economic development and for illustrating the role of latecomer enterprise in engaging with and exploiting international production networks.