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Institutional support, regional trade linkages and technological capabilities in the semiconductor industry in Malaysia

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  • Rajah Rasiah
  • Yap Xiao Shan

Abstract

This article examines the relationship between host-site institutional support and regional trade linkages on firm-level technological capabilities in the semiconductor industry in Malaysia. An evolutionary perspective was used to measure technological capabilities using knowledge embodied in machinery, organization, processes and products. The results show that host-site institutional support and regional trade linkages were correlated with technological upgrading. The relationship between host-site institutional support and technological upgrading was stronger than that between regional trade linkages and technological upgrading. The results show that host-site institutional support is more important than regional integration in influencing firms' capacity to upgrade their technological capabilities.

Suggested Citation

  • Rajah Rasiah & Yap Xiao Shan, 2016. "Institutional support, regional trade linkages and technological capabilities in the semiconductor industry in Malaysia," Asia Pacific Business Review, Taylor & Francis Journals, vol. 22(1), pages 165-179, January.
    • Handle: RePEc:taf:apbizr:v:22:y:2016:i:1:p:165-179
    DOI: 10.1080/13602381.2014.990210
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    1. Rajah Rasiah, 2010. "Are electronics firms in Malaysia catching up in the technology ladder?," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 15(3), pages 301-319.
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    More about this item

    JEL classification:

    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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