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Institutional Support, Regional Trade Linkages and Technological Capabilities in the Semiconductor Industry in Malaysia

Author

Listed:
  • Rajah Rasiah

    (Department of Development Studies, University of Malaya)

  • Yap Xiao SHAN

    (Department of Development Studies, University of Malaya)

Abstract

This article examines the relationship between host-site institutional support and regional trade linkages on firm-level technological capabilities in the semiconductor industry in Malaysia. An evolutionary perspective was used to measure technological capabilities using knowledge embodied in machinery, organization, processes and products. The results show that host-site institutional support, and regional trade linkages were correlated with technological upgrading. The relationship between host-site institutional support and technological upgrading was stronger than that between regional trade linkages and technological upgrading. The results show that host site institutional support is more important than regional integration in influencing firms’ capacity to upgrade their technological capabilities.

Suggested Citation

  • Rajah Rasiah & Yap Xiao SHAN, 2015. "Institutional Support, Regional Trade Linkages and Technological Capabilities in the Semiconductor Industry in Malaysia," Working Papers DP-2015-16, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2015-16
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    References listed on IDEAS

    as
    1. Rajah Rasiah, 2010. "Are electronics firms in Malaysia catching up in the technology ladder?," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 15(3), pages 301-319.
    2. Rasiah, Rajah, 1994. "Flexible Production Systems and Local Machine-Tool Subcontracting: Electronics Components Transnationals in Malaysia," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 18(3), pages 279-298, June.
    3. Michael Hobday, 1995. "Innovation In East Asia," Books, Edward Elgar Publishing, number 226.
    4. World Bank, 2009. "Geography in Motion: World Development Report 2009 (excerpt)," Transnational Corporations Review, Ottawa United Learning Academy, vol. 1(3), pages 40-46, September.
    5. World Bank, 2009. "World Development Report 2009," World Bank Publications - Books, The World Bank Group, number 5991.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    institutional support; Malaysia; regional trade chains; semiconductors; technological capabilities;
    All these keywords.

    JEL classification:

    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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