Understanding innovation in production networks in East Asia

Arbeitspapier

This paper explores the "black box" of innovation in the electronics production network in East Asia through a mapping exercise of technological capabilities and an econometric analysis of exporting in the People's Republic of China (PRC), Thailand, and the Philippines. Technology-based approaches to trade offer a plausible explanation for firm-level exporting behavior and complement the literature on production networks. The econometric results confirm the importance of foreign ownership and innovation in increasing the probability of exporting in electronics. Higher levels of skills, managers' education, and capital also matter in the PRC as well as accumulated experience in Thailand. Furthermore, a technology index composed of technical functions performed by firms (to represent technological capabilities) emerges as a more robust indicator of innovation than the research and development (R&D) to sales ratio. Accordingly, technological effort in electronics in these countries mostly focuses on assimilating and using imported technologies rather than formal R&D by specialized engineers.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ADBI Working Paper ; No. 410

Classification and Topics

• Classification: Wirtschaft ; Multinational Firms; International Business ; Innovation and Invention: Processes and Incentives ; Management of Technological Innovation and R&D ; Microelectronics; Computers; Communications Equipment ; Comparative Studies of Countries
• Subject: production networks ; foreign direct investment ; innovation ; technological capabilities ; r&d ; exports ; east asia ; prc ; thailand ; philippines ; Elektronisches Produkt ; Innovation ; Internationale Arbeitsteilung ; Technologietransfer ; Thailand ; China ; Philippinen ; Ostasien

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Wignaraja, Ganeshan
• Event: Veröffentlichung
• (who): Asian Development Bank Institute (ADBI)
• (where): Tokyo
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/101155
• Last update: 10.03.2025, 11:42 AM CET