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Historical Trajectories of Innovation and Competitiveness: Hong Kong Firms and their China Linkages
Author(s) -
Hollows Judith
Publication year - 1999
Publication title -
creativity and innovation management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.148
H-Index - 60
eISSN - 1467-8691
pISSN - 0963-1690
DOI - 10.1111/1467-8691.00119
Subject(s) - china , competition (biology) , business , production (economics) , market economy , economy , industrial organization , international trade , commerce , economics , geography , ecology , macroeconomics , archaeology , biology
Hong Kong manufacturing firms have been competing in world markets since the 1950’s. Their success has been based on low cost and flexible production and an ability to meet very tight delivery schedules as many of their products are short run fashion items for which consumer demand can be fickle. The opening of China in 1978 has enabled Hong Kong firms to sustain their cost advantages in world markets for a further twenty years. However, the rapid economic development of South China in particular, to which Hong Kong is adjacent, and the competition from lower cost economies in Southeast Asia is leading to pressures on Hong Kong manufacturers to rethink their strategies. Ambitions to continue to compete among world class manufacturers has become a survival strategy. The focus of this paper is to identify and explain the historical development of innovation in the strategies of Hong Kong firms to enable them to continue to dominate niche markets in Europe and the USA and develop a presence in the China market.