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Leading, Following or Cooked Goose? Innovation Successes and Failures in Taiwan's Electronics Industry

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  • Douglas Fuller
  • Akintunde Akinwande
  • Charles Sodini

Abstract

The reasons behind the innovation successes and failures in the Taiwanese electronics industry have been widely discussed. This paper makes its contribution to the debate by comparing the innovation outcomes for three products: complimentary metal oxide silicon (CMOS) logic, dynamic random access memory (DRAM) and active matrix liquid crystal displays (AMLCDs). Four success factors are identified to characterize products where the Taiwanese pursue innovation: granularity of production; absence of need for large amounts of patient capital; volume production; and manufacturing-based production. In turn, this paper argues that products exhibiting these characteristics succeed because such characteristics draw upon the institutional and historical strengths of the Taiwanese economy. The paper broadens the inquiry to assess what lessons the Taiwanese innovation successes have for developing countries. It is argued that the new lesson Taiwan has to offer is that countries can become innovators by concentrating their human and financial capital through granularization of production.increasingly relevant. It is argued here that social networks sustain interpersonal routines, which not only transgress organizational boundaries but on occasion also incubate new organizations in order to ensure their continued existence. This paper presents an overview of the routine concept and an argument for applying it in a network embeddedness context. Two case studies are presented, covering examples from the Danish dairy and the Danish machinery industry.

Suggested Citation

  • Douglas Fuller & Akintunde Akinwande & Charles Sodini, 2003. "Leading, Following or Cooked Goose? Innovation Successes and Failures in Taiwan's Electronics Industry," Industry and Innovation, Taylor & Francis Journals, vol. 10(2), pages 179-196.
  • Handle: RePEc:taf:indinn:v:10:y:2003:i:2:p:179-196
    DOI: 10.1080/1366271032000096635
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    Citations

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    Cited by:

    1. Chen, Chien-Hsun, 2023. "Prospects for Taiwan’s Outward Investment in China," MPRA Paper 116578, University Library of Munich, Germany.
    2. Liu, John Jen-wei & Ray, Pradeep Kanta, 2012. "The ‘Triple-alliance’ perspective for new industry creation: Lessons from the flat panel industry in Taiwan," Journal of Asian Economics, Elsevier, vol. 23(5), pages 585-599.
    3. Nien-Chi Liu & Ming-Yuan Chen & Mei-Ling Wang, 2016. "The Effects of Non-Expensed Employee Stock Bonus on Firm Performance: Evidence from Taiwanese High-Tech Firms," British Journal of Industrial Relations, London School of Economics, vol. 54(1), pages 30-54, March.
    4. Jennifer H. Chen & Shihmin Lo & Show-Ling Jang & Chi-Cho Huang, 2012. "Strategic partnership and its effect on external learning of technology descendants," Scientometrics, Springer;Akadémiai Kiadó, vol. 92(1), pages 157-179, July.
    5. Sumita Sarma & Sunny Li Sun, 2017. "The genesis of fabless business model: Institutional entrepreneurs in an adaptive ecosystem," Asia Pacific Journal of Management, Springer, vol. 34(3), pages 587-617, September.
    6. TUNCEL, Cem Okan, 2012. "Sectoral System of Innovation and Exploring Technological Upgrading Strategies in Late-Industrializing Countries," MPRA Paper 40843, University Library of Munich, Germany.
    7. Kenney, Martin & Breznitz, Dan & Murphree, Michael, 2013. "Coming back home after the sun rises: Returnee entrepreneurs and growth of high tech industries," Research Policy, Elsevier, vol. 42(2), pages 391-407.
    8. Natsuki Kamakura, 2022. "From globalising to regionalising to reshoring value chains? The case of Japan’s semiconductor industry [Reorienting the drivers of development: alternative paradigms]," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 15(2), pages 261-277.
    9. Breznitz, Dan & Zehavi, Amos, 2010. "The limits of capital: Transcending the public financer-private producer split in industrial R&D," Research Policy, Elsevier, vol. 39(2), pages 301-312, March.
    10. Kim, Jin-Hyuk & Komatsu, Takehiko & Owan, Hideo, 2020. "The role of design method and process technology in stable outsourcing equilibria," International Journal of Industrial Organization, Elsevier, vol. 69(C).

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