Export-Led Technology Creation in the Four Dragons: the situation of Electronic devices Mike Hobday

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 Essay on Export-Led Technology Development inside the Four Dragons: the Case of Electronics Robert Hobday

Export-led Technology Development inside the Four Dragons: The Case of Electronics Robert Hobday


To date, little attention continues to be paid to the strategies of regional firms in bringing about industrialization in East Asia. This content focuses on the methods by which household firms employed foreign links to overcome technology and market bamers in electronic devices. A simple market-technologymodel is developed as a initially approximation showing how domestic technology assimilation relates to export advertising in the 4 ‘Dragons' of East Asia (South Korea, Taiwan, Hong Kong and Singapore). It suggests that foreign trade demand designed the rate and routine of technological progress in electronics in each of the 4 Dragons. Traditional evidence demonstrates that each country used a distinctive mix of direct and indirect export systems to acquire technology and to enter in international markets. Foreign customers, transnational organizations (TNCs), oem manufacturer (OEM) arrangements, joint ventures and licensing bargains were used by ‘latecomer' firms with their market and technology benefit. Asian companies progressed by simple set up tasks to more sophisticated product design and development functions, travelling ‘backwards' along the support life cycle of traditional development models. Today, leading Oriental firms commit heavily in R& M and engage in partnerships with TNCs to obtain and develop advanced new electronics technologies. The technological progress of latecomers remains closely coupled to export demand through OEM and also other institutional plans.


Following Japan, the four ‘Dragons'or newly industrializingcountries (NICs) of East Asia (South Korea, Taiwan, Hk and Singapore) have made impressive economic and technological progress'. During the eighties, the Research with this article was funded by Economic and Social Analysis Council (ESRC) of OO the UK, grant reference Ur O twenty-three 3116. Mcdougal is grateful to Prof. Yao-Su Hu, Prof. Captain christopher Freeman, Doctor Jose Cassiolato and Doctor Norman Clark for advice and feedback on previously drafts. The standard disclaimers apply. 1 . The four Dragons are also referred to as Tigers. The symbol of South Korea (hereafter Korea) is a tiger. The other three economies are called Dragons, the Chinese sign of power and dynamism. Expansion and Change Vol. 25 (1994), 333-361. 0Institute of Cultural Studies year 1994. Published by simply Blackwell Web publishers, 108 Cowley Rd, Oxford OX4 IJF, UK.


Mike Hobday

four Dragons developed by low to medium wage economies. Today, the 4 economies established high value added industries and compete strongly in technology-intensive export marketplaces, such as electronicsz. In the literature on East Asian industrialization little focus is paid to understanding how firms in the four NICs overcame limitations to market entry, acquired technology and discovered to be competitive in overseas markets. A lot of the debate has focused on the relative need for market mechanisms versus government policies. While some studies tension the part of government policies in guiding industrialization (Amsden, 1989; Betty and Dahlman, 1992; Sort, 1990), others claim that financial fundamentals just like macroeconomic stability, market alignment, inflation and interest rate plans underlie East Asian advancement. A major Community Bank research, for example , proves that industrial intervention are unable to explain patterns of output, evolving professional structures or perhaps Asian foreign trade success (World Bank, 1993)'. The prominence of the ‘market versus policy' debate leaves little space for the study of Asian firms' strategies for overcoming barriers to entry and acquiring technologp. This is a significant field of enquiry mainly because firms usually are the positionnement of competitiveness, innovation, market entry and productivity increase. How they get technology and access overseas markets is therefore important to understanding Asia's industrialization. This content...

References: and Strategic Management 3(4): 439-53. Fortune (1991) 7 Oct, Special Statement ‘The Developing Power of Asia'. Fransman, M. and E. King (eds) (1984) Technological Capability inside the Third World. London, uk:


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