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Technological Maturity and Development without Research: The Challenge for Malaysian Manufacturing

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  • Suresh Narayanan
  • Lai Yew Wah

Abstract

Propelled largely by direct investment via multinationals, Malaysia’s manufacturing sector has grown rapidly and is changing its output‐mix. In 1992, the share of high‐tech products in Malaysian manufacturing exceeded that of Japan, Korea or Taiwan. However, this ‘maturity’ was acquired without a strong research base. This article provides a framework which looks at the role of research and development (R&D) in conferring technological maturity and assesses the progress Malaysian manufacturing has made in this regard. The authors find that while multinationals have transferred many aspects of production, they have been slow in transferring R&D expertise. Neither has indigenous innovation filled this gap. Consequently, the long‐term sustainability of the industrial transformation process in Malaysia is in jeopardy. The article concludes with suggestions for corrective policies.

Suggested Citation

  • Suresh Narayanan & Lai Yew Wah, 2000. "Technological Maturity and Development without Research: The Challenge for Malaysian Manufacturing," Development and Change, International Institute of Social Studies, vol. 31(2), pages 435-457, March.
    • Handle: RePEc:bla:devchg:v:31:y:2000:i:2:p:435-457
    DOI: 10.1111/1467-7660.00161
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    1. repec:ilo:ilowps:411228 is not listed on IDEAS
    2. Ducanes, Geoffrey. & Abella, Manolo I., 2008. "Labour shortage responses in Japan, Korea, Singapore, Hong Kong, and Malaysia : a review and evaluation," ILO Working Papers 994112283402676, International Labour Organization.
    3. Suresh Narayanan & Mehrshad Parvin Hosseini, 2014. "Drivers of Innovation in the Malaysian Services Sector: An Analysis Based on Firm-Level Data," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 6(1), pages 95-118, April.
    4. Roger Hayter & David W. Edgington, 2004. "Flying Geese In Asia: The Impacts of Japanese MNCs as a Source of Industrial Learning," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 95(1), pages 3-26, February.
    5. Rasiah, Rajah., 2014. "Economic implications of ASEAN integration for Malaysia's labour market," ILO Working Papers 994865243402676, International Labour Organization.
    6. Mahadevan, Renuka, 2007. "Perspiration versus inspiration: Lessons from a rapidly developing economy," Journal of Asian Economics, Elsevier, vol. 18(2), pages 331-347, April.

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