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Innovation and learning in the integrated circuits industry in Taiwan and China

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  • Rajah Rasiah
  • Xinxin Kong
  • Yeo Lin

Abstract

Using the evolutionary framework of inductive screening, this paper seeks to examine the drivers of technological catch-up in the integrated circuits (ICs) industry in Taiwan and China. The paper shows that IC manufacturing began with multinationals relocating export-oriented assembly operations in the 1960s in Taiwan and in the 1980s in China, but serious technological catch-up took place when, with the assistance of the government, local firms began to participate in wafer fabrication and designing activities. While foreign ownership and export markets were critical in initiating connections in the global IC value chain, the paper argues that the role of the government through funding, research and development laboratories and development of human capital were critical in local firms’ technological catch-up process in both the countries.

Suggested Citation

  • Rajah Rasiah & Xinxin Kong & Yeo Lin, 2010. "Innovation and learning in the integrated circuits industry in Taiwan and China," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 15(3), pages 225-246.
    • Handle: RePEc:taf:rjapxx:v:15:y:2010:i:3:p:225-246
    DOI: 10.1080/13547860.2010.494900
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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.
    2. Clair Brown & Greg Linden, 2009. "Chips and Change: How Crisis Reshapes the Semiconductor Industry," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262013460, April.
    3. Lee, Maw-Lin & Liu, Ben-Chieh & Wang, Ping, 1994. "Education, human capital enhancement and economic development: Comparison between Korea and Taiwan," Economics of Education Review, Elsevier, vol. 13(4), pages 275-288.
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    Cited by:

    1. Ta-Kai Yang & Min-Ren Yan, 2019. "Exploring the Enablers of Strategic Orientation for Technology-Driven Business Innovation Ecosystems," Sustainability, MDPI, vol. 11(20), pages 1-19, October.
    2. Yun Liu & Zhe Yan & Yijie Cheng & Xuanting Ye, 2018. "Exploring the Technological Collaboration Characteristics of the Global Integrated Circuit Manufacturing Industry," Sustainability, MDPI, vol. 10(1), pages 1-23, January.
    3. Le Bas, Christian & Latham, William & Volodin, Dmitry, 2014. "Productivité et mobilité des inventeurs prolifiques : une approche comparative des systèmes d’innovation de quatre grands pays asiatiques (Chine, Corée, Japon, Taiwan)," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 15.

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