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Latecomer upgrading in Taiwan

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  • Wan-wen Chu

Abstract

Taiwan successfully upgraded its industries and entered into the high-tech industries in the last decades of the twentieth century. This essay examines how Taiwan achieved latecomer upgrading, by exploring the process by which its latecomer firms entered high-tech and modern services. It is found that the latecomer firms, called second movers here, entered high tech when the product just turned mature, and relied upon a different set of capabilities from those of the first movers in the advanced countries. The findings challenge prevalent orthodoxy, which includes open markets, increased foreign investment, small firms, and diminished state intervention. In reality, large domestically owned second movers rather than foreign enterprises or small networked firms have led Taiwan's entry into mature high tech. In the meantime, the government intervention has not been lessened, but has been adapting to the changing environment, in promoting high-tech industry and modern services.

Suggested Citation

  • Wan-wen Chu, 2015. "Latecomer upgrading in Taiwan," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 20(3), pages 369-384, July.
    • Handle: RePEc:taf:rjapxx:v:20:y:2015:i:3:p:369-384
    DOI: 10.1080/13547860.2015.1054165
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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. Wan-wen Chu, 2017. "Inductive method and development perspective: Alice Amsden on Taiwan and beyond," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 10(1), pages 15-34.
    2. Zhou, Qingna & Gao, Ping & Chimhowu, Admos, 2019. "ICTs in the transformation of rural enterprises in China: A multi-layer perspective," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 12-23.

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