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Technological capability of automobile parts suppliers in Thailand

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  • Yuri Sadoi

Abstract

This paper analyses the development of the technological capabilities of the engineers in automobile parts suppliers in Thailand. The evidence shows that Thailand's latecomer firms accumulated their technology primarily from foreign direct investment, mostly from Japanese car makers. There has been a significant rise in the demand for engineering and technological capabilities that has driven some amount of technological catch-up in the industry. However, the lack of engineers and technological capabilities among Thai supplier firms has restricted the catch-up process. To upgrade further the Thai automobile firms should build a strong industrial cluster by stimulating the development of technological human capital to provide the horizontal integration necessary for the suppliers to remain competitive. Upstream technological capability is important for this to take place, but it can only be achieved through the development of human capital.

Suggested Citation

  • Yuri Sadoi, 2010. "Technological capability of automobile parts suppliers in Thailand," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 15(3), pages 320-334.
    • Handle: RePEc:taf:rjapxx:v:15:y:2010:i:3:p:320-334
    DOI: 10.1080/13547860.2010.494912
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    References listed on IDEAS

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    1. Narula, Rajneesh & Marin, Anabel, 2005. "Exploring the relationship between direct and indirect spillovers from FDI in Argentina," Research Memorandum 024, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    2. Narula, Rajneesh & Portelli, Brian, 2004. "Foreign direct investment and economic development: Opportunities and limitations from a developing country perspective," Research Memorandum 009, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    3. Best, Michael, 2001. "The New Competitive Advantage: The Renewal of American Industry," OUP Catalogue, Oxford University Press, number 9780198297451.
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    Cited by:

    1. Mohamad, Mostafa & Songthaveephol, Veerasith, 2020. "Clash of titans: The challenges of socio-technical transitions in the electrical vehicle technologies – the case study of Thai automotive industry," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    2. David Guerrero & Hidekazu Itoh & Guanie Lim & Petronille Harnay & Guillaume Corre, 2023. "Supplier networks at the integrated peripheries of the automobile industry: the case of keiretsu suppliers in Thailand," Post-Print hal-04166229, HAL.

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