Article: Beyond the global production networks: a case of further upgrading of Taiwan|s information technology industry Journal: International Journal of Technology and Globalisation (IJTG) 2004 Vol.1 No.1 pp.130 - 144 Abstract: In the current literature on globalisation and economic development, the global production networks and global commodity/value chains perspectives highlight the importance of transnational organisational linkages as the conduit of technology transfer and knowledge diffusion, enabling manufacturers in the less developed economies to catch up by learning from lead firms in more developed countries. The institutional perspective, however, ascribes great importance to the role of public and semi-government institutions in facilitating active technology leveraging and knowledge diffusion. This paper uses the development of the information technology (IT) industry in Taiwan as a case to examine the two perspectives discussed. Global production networks were found to have played a pivotal role in the initial stage of the development of the IT industry in Taiwan. With the changing structure of the IT industry and emerging threat from low-cost competitors, the roles of the state and institutions were found to be increasingly important in overcoming barriers against the further upgrading of the industry concerned. It was concluded that the organisational and institutional approaches to globalisation and economic development are complementary to, rather than competing with, one another. Inderscience Publishers - linking academia, business and industry through research

Title: Beyond the global production networks: a case of further upgrading of Taiwan's information technology industry

Authors: Teresa Shuk-Ching Poon

Addresses: School of Business and Administration, The Open University of Hong Kong, 30 Good Shepherd Street, Homantin, Kowloon, Hong Kong Special Administrative Region, The People's Republic of China

Abstract: In the current literature on globalisation and economic development, the global production networks and global commodity/value chains perspectives highlight the importance of transnational organisational linkages as the conduit of technology transfer and knowledge diffusion, enabling manufacturers in the less developed economies to catch up by learning from lead firms in more developed countries. The institutional perspective, however, ascribes great importance to the role of public and semi-government institutions in facilitating active technology leveraging and knowledge diffusion. This paper uses the development of the information technology (IT) industry in Taiwan as a case to examine the two perspectives discussed. Global production networks were found to have played a pivotal role in the initial stage of the development of the IT industry in Taiwan. With the changing structure of the IT industry and emerging threat from low-cost competitors, the roles of the state and institutions were found to be increasingly important in overcoming barriers against the further upgrading of the industry concerned. It was concluded that the organisational and institutional approaches to globalisation and economic development are complementary to, rather than competing with, one another.

Keywords: global production networks; industrial upgrading; global value chains; integrated service providers; institutions; state policies; firm strategies; information technology; Taiwan.

DOI: 10.1504/IJTG.2004.004555

International Journal of Technology and Globalisation, 2004 Vol.1 No.1, pp.130 - 144

Published online: 21 May 2004 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article

Title: Beyond the global production networks: a case of further upgrading of Taiwan's information technology industry

Keep up-to-date