What Permits Small Firms to Compete in High-Tech Industries? Inter-Organizational Knowledge Creation in the Taiwanese Computer Industry

This paper addresses a puzzle related to firm size and competition. Since Stephen Hymer´s pioneering contribution (Hymer, 1960/1976), theories of the firm implicitly assume that only large, diversified multinational enterprises can compete in industries that combine high capital intensity, high knowledge-intensity and a high degree of internationalization. Small firms, by definition, have limited resources and capabilities and are unlikely to possess substantial ownership advantages. They also have a limited capacity to influence and shape the development of markets, market structure and technological change. One would thus expect that they are ill-equipped to compete in a knowledge-intensive industry that is highly globalized. Taiwan’s experience in the computer industry tells a different story: despite the dominance of small- and medium-sized enterprises (SMEs), Taiwan successfully competes in the international market for PC-related products, key components and knowledge-intensive services. The paper inquires into how this was possible. It is argued that organizational innovations related to the creation of knowledge are of critical importance. Taiwanese computer firms were able to develop their own distinctive approach: due to their initially very narrow knowledge base, access to external sources of knowledge has been an essential prerequisite for their knowledge creation. Such “inter-organizational knowledge creation” (Nonaka and Takeuchi, 1995) was facilitated by two factors: active, yet selective and continuously adjusted industrial development policies; and a variety of linkages with large Taiwanese business groups, foreign sales and manufacturing affiliates and an early participation in international production networks established by foreign electronics companies. A novel contribution of this paper is its focus on inter-organizational knowledge creation. I first describe Taiwan´s achievements in the computer industry. The dominance of SMEs and their role as a source of flexibility is documented in part II. Part III describes some policy innovations that have shaped the process of knowledge creation. The rest of the paper inquires how inter-organizational knowledge creation has benefited from a variety of linkages with large domestic and foreign firms; I also address some industrial upgrading requirements that result from this peculiar type of knowledge creation.knowledge creation; learning; small firms; networks; firm strategy; industrial policies;

Semiconductors in Taiwan and South Korea

Available in PDF from the MIT Japan Program Website."Date of publication: January 2001"--T.p. verso. "MIT International Science and Technology Initiatives"--Cover.Includes bibliographical references (p. 22).William W. Keller [and] Louis W. Pauly

From government-led behaviour change to bottom-up understanding: the transition to low-carbon transport on motorcycles in Taipei, Taiwan.

Taiwan's prevailing motorcycle usage has been widely discussed in relation to urban air quality. As Taiwan's policy-makers seek to reduce mobile pollution sources in cities, the large number of petrol-powered motorcycles within cities have become a major target to be addressed. In addition to promoting public transport usage, the shift of petrol-powered motorcycles to electric ones has been one of the goals that the Taiwan government has vigorously implemented in recent years. Many scholars have studied motorcycle issues in Taiwan, however their suggested directions are mostly top-down promotion methods such as persuading riders to change to electric vehicles, providing subsidies to use lower-carbon transport modes, expanding the public transport system, or encouraging people to change their individual travel behaviours. My research examines the issue theoretically and practically from social science theories of practice and mobility and in-depth interviews with Taipei and New Taipei City motorcycle riders to understand the motorcycle practice from the bottom-up. In light of this, I aim to provide a nuanced understanding of the motorcycle low-carbon transition in Taiwan rather than focus on the top-down promotion of government-led behaviour change. This study uses in-depth interviews to understand the issues, to complement existing discussions on largescale structural change or assessing practitioners' thoughts and needs quantitatively. For the transition process, looking at the practitioners' ideas in-depth and building a diverse discussion of perspectives differing from the direction of existing research and policy trends is crucial and valuable. The theoretical contribution of my research is to provide a different context in the research field of mobility and sustainability, which thus far has mostly focused on cars and their daily use. Since motorcycle usage is relatively popular in Asia, for many Asian countries, motorcycles are a central issue that needs to be faced in the low-carbon transport transition. Practically, my results illustrate aspects that policy-makers need to pay attention to during the low-carbon transport transition for Taiwan's motorcycle riders, such as the significance and influence of the motorcycle culture deeply embedded in Taiwanese society. My findings indicate that a 'tough' approach to transition through laws and regulation, or 'soft' approach through persuasion are both on their own not sufficient. Rather, a low-carbon mobility transition for Taiwan and beyond needs to strategically pay attention to every aspect of the change in practice, respect the meanings of the practice possessed by the practitioners, and handle the inclusion of practitioners carefully during the transition process. Attention to practice is also important to prevent disadvantaged groups of people from being affected by further inequality in the transition process, and to maintain the justice of the transition on the pathway to a low-carbon transportation society

Air Pollution in Asia

Air pollution is a major factor that creates bad influence to human health and cause respiration disease. This project will introduce air pollution in general point of view, describe the cause pollutants, human effects, and explain critical environmental effect in present time. For further information on air pollution, the air pollution index will introduce the pollutant criteria and the air quality detector, monitoring system. In order to provide best suggested methods for preventing air pollution issue, this project compares all technical solutions and government policies published by Taiwan, Hong Kong, and Japan; so the result will be best suitable and efficient for other Asian countries

Demand-oriented innovation policy: Mapping the field and proposing a research agenda for developing countries

This article conducts a scoping review of demand side innovation policies and its associated instruments in relevant English language academic literature. Demand-side innovation policies aim to improve contextual conditions to encourage innovation adoption to address government-defined societal challenges. From the demand approach, innovation policy is expected to involve a directionality, which originates from collective priorities around relevant problems. Based on a scooping review of the innovation policy literature from the demand perspective, this research has characterized trends in the discussion about innovation policies that target such challenges, a perspective that complements the traditional supply side policy instruments. Findings indicate that literature on demand-side policies has mainly addressed energy and sustainability issues in European countries and China. Additionally, although demand-side policies have been advocated for a relatively long time, the literature recognizes that a policy mix involving also the supply-side can be more effective in encouraging innovation. In Latin America, demand-side policies have been poorly understood, leading to a defective implementation of policies and instruments. The stage of research on demand-side policies is still evolving and this article advances research propositions on innovation policy, with a deep focus on how they can be implemented in innovation-lagging developing countries

Comparative Development Strategies of South Korea and Taiwan as Reflected in Their Respective International Trade Policies

This paper examines the interplay of economic development and trade policies in South Korea and Taiwan. Although many differences exist between the two states, both have identified economic development as a central national policy goal linked explicitly to national security, even national survival. Both have targeted international trade as a key means of promoting economic development. Thus, trade policy, broadly defined, has served as one of the principal components of their economic development strategies. Of course, many other factors impinge upon trade policy formation - the national imperatives against which all policy must be weighed, economic opportunities and constraints, the domestic political process through which societal interests and pressures are managed, and the international political process through which competing interests are accommodated - but far more than in most other developing states, trade policy in Korea and Taiwan has given primacy to economic growth

An economic analysis of Taiwan's automobile industry

Thesis (M.S.)--Massachusetts Institute of Technology, Dept. of Civil and Environmental Engineering, 1995.Includes bibliographical references (leaves 97-100).by Chia-Wen Chen.M.S