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Fast-Follower Industrial Dynamics: The Case of Taiwan's Emergent Solar Photovoltaic Industry

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  • John Mathews
  • Mei-Chih Hu
  • Ching-Yan Wu

Abstract

The world is on the cusp of major transformations of energy systems, with solar photovoltaic (PV) systems providing one of the most promising alternatives to fossil fuels. Amongst the countries moving to take advantage of the new production possibilities thus being opened up is Taiwan, employing in this new sector its characteristic strategies of fast followership that it has perfected in earlier industrial shifts involving semiconductors, ICT products and flat panel displays. This paper provides an interim assessment of Taiwan's early entry strategies, involving a focus on mainstream crystalline silicon solar cells, as well as entry into emerging niche sectors such as thin-film second-generation cells and concentrated solar cells utilizing novel semiconductor materials. Taiwan firms' fast-follower strategies are highlighted and assessed in light of the literature on industrial dynamics and catch-up processes generally. The paper makes a contribution to theory in building nine propositions regarding fast followership, based on prior industrial experiences and this latest episode in the solar PV industry. Taiwan's strategies as a model for China are discussed, while the paper proposes Taiwan as an alternative to the “closed” and “open” models of photovoltaic diffusion identified for Japan and the USA.

Suggested Citation

  • John Mathews & Mei-Chih Hu & Ching-Yan Wu, 2011. "Fast-Follower Industrial Dynamics: The Case of Taiwan's Emergent Solar Photovoltaic Industry," Industry and Innovation, Taylor & Francis Journals, vol. 18(2), pages 177-202.
    • Handle: RePEc:taf:indinn:v:18:y:2011:i:2:p:177-202
    DOI: 10.1080/13662716.2011.541104
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    References listed on IDEAS

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    1. Alice H. Amsden & Wan-wen Chu, 2003. "Beyond Late Development: Taiwan's Upgrading Policies," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011980, April.
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    Cited by:

    1. Hsien-Chen Lo & Ching-Yan Wu & Mei-Chih Hu, 2020. "Acting as an innovation niche seeder:how can the reverse salient of southeast Asian economies be overcome?," Journal of Evolutionary Economics, Springer, vol. 30(4), pages 1195-1217, September.
    2. Wang Lai Wang & Marek Kryszak, 2020. "Technological Progress and Supply Base under Uncertain Market Conditions: The Case Study of the Taiwanese c-Si Solar Industry 2016–2019," Energies, MDPI, vol. 13(21), pages 1-25, November.
    3. Kuei-Kuei Lai & Chien-Yu Lin & Yu-Hsin Chang & Ming-Chung Yang & Wen-Goang Yang, 2017. "A structured approach to explore technological competencies through R&D portfolio of photovoltaic companies by patent statistics," Scientometrics, Springer;Akadémiai Kiadó, vol. 111(3), pages 1327-1351, June.
    4. Lema, Adrian & Lema, Rasmus, 2016. "Low-carbon innovation and technology transfer in latecomer countries: Insights from solar PV in the clean development mechanism," Technological Forecasting and Social Change, Elsevier, vol. 104(C), pages 223-236.
    5. David B. Audretsch & Antje Fiedler, 2023. "Does the entrepreneurial state crowd out entrepreneurship?," Small Business Economics, Springer, vol. 60(2), pages 573-589, February.
    6. Ching-Yan Wu, 2014. "Comparisons of technological innovation capabilities in the solar photovoltaic industries of Taiwan, China, and Korea," Scientometrics, Springer;Akadémiai Kiadó, vol. 98(1), pages 429-446, January.
    7. Douglas R Gress, 2015. "Knowledge bases, regional innovation systems, and Korea's solar PV industry," Environment and Planning C, , vol. 33(6), pages 1432-1449, December.
    8. Wang, Chi-Tai & Chiu, Chui-Sheng, 2014. "Competitive strategies for Taiwan's semiconductor industry in a new world economy," Technology in Society, Elsevier, vol. 36(C), pages 60-73.
    9. Liu, Chung-Shu & Hsiao, Chih-Tung & Chang, Dong-Shang & Hsiao, Cheng-Hsing, 2016. "How the European Union’s and the United States’ anti-dumping duties affect Taiwan's PV industry: A policy simulation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 296-305.
    10. Mei-Chih Hu, 2011. "Evolution of knowledge creation and diffusion: the revisit of Taiwan’s Hsinchu Science Park," Scientometrics, Springer;Akadémiai Kiadó, vol. 88(3), pages 949-977, September.
    11. Monk, Alexander & Perkins, Richard, 2020. "What explains the emergence and diffusion of green bonds?," Energy Policy, Elsevier, vol. 145(C).
    12. Jochem, Patrick & Schleich, Joachim, 2012. "Exploring the drivers behind automotive exports in OECD countries: An empirical analysis," Working Papers "Sustainability and Innovation" S3/2012, Fraunhofer Institute for Systems and Innovation Research (ISI).
    13. Yoonhwan Oh & Jungsub Yoon & Jeong-Dong Lee, 2016. "Evolutionary Patterns of Renewable Energy Technology Development in East Asia (1990–2010)," Sustainability, MDPI, vol. 8(8), pages 1-24, July.
    14. Wu, Ching-Yan & Mathews, John A., 2012. "Knowledge flows in the solar photovoltaic industry: Insights from patenting by Taiwan, Korea, and China," Research Policy, Elsevier, vol. 41(3), pages 524-540.
    15. Urbig, Diemo & Procher, Vivien D. & Steinberg, Philip J. & Volkmann, Christine, 2022. "The role of firm-level and country-level antecedents in explaining emerging versus advanced economy multinationals' R&D internationalization strategies," International Business Review, Elsevier, vol. 31(3).

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