Crisis, national innovation, and reform in South Korea

Available in PDF from the MIT Japan Program Website."Date of publication: May 1, 2001"--T.p. verso. "MIT International Science and Technology Initiatives"--Cover.Includes bibliographical references (p. 17-18).Linsu Kim

Late Innovation Strategies in Asian Electronics Industries: A Conceptual Framework and Illustrative Evidence

This paper was published in Oxford Development Studies special issue in honor of the late Professor Linsu Kim. The paper reviews evidence on the evolution of electronics design in Asia's leading electronics exporting countries, to establish what capabilities have been developed, and to shed light on the forces that are driving "late innovation" strategies. It also reviews intellectual sources that can be used to theoretically ground these hypotheses. Using a well-known taxonomy of innovation that distinguishes incremental, modular, architectural and radical innovations, and the concept of "disruptive technologies", I argue that Asian firms may have realistic chances to engage in incremental innovations as well as in architectural innovations. However, to sustain "late innovation" strategies over a longer period, "complex system integration" capabilities are necessary to provide the missing link.

The Internet's Effects on Global Production Networks: Challenges and Opportunities for Managing in Developing Asia

Placing global production networks (GPN) on the Internet poses a fundamental challenge, but also creates new opportunities for managing in Developing Asia. Network flagships can now select best-performing suppliers on a global scale, increasing the pressure on Asian suppliers. But the transition form EDI to the Internet may also provide new opportunities for Asian suppliers, by reducing barriers to network entry, and by enhancing knowledge diffusion. A conceptual framework is introduced to assess how the Internet reshapes business organization and GPN. That framework is applied to one of the role models of managing in Asia, Taiwan's Acer Group. The paper highlights a vicious circle that must be broken to reap the benefits of the Internet: Asian firms must reduce a huge efficiency gap between manufacturing and the management of supporting digital information systems (DIS). The challenge is to embrace the Internet as flexible infrastructures that support not only information exchange, but also knowledge sharing, creation and utilization. The Internet facilities this task: it provides new opportunities for the outsourcing of mission-critical support services.

Pathways to Innovation in Asia's Leading Electronics Exporting Countries: Drivers and Policy Implications

This paper was prepared for the Democratic Pacific Assembly 2003 Conference, "Common Future of the 21st Century Pacific," September 18-21, 2003, in Taipei, Taiwan. This paper offers a framework for exploring emerging pathways to innovation in Asian electronics industries, as well as their drivers and policy implications. The focus is on "stylized facts" rather than on the diversity of specific country trajectories. I demonstrate that the role of Asia's leading players in the electronics industry is changing - from global export production bases for hardware and software, a transition is under way to the creation of commercially viable innovations and standards. I argue that transformations in global markets, production and innovation systems are providing new opportunities for Asian firms that seek to improve their innovative capabilities. To exploit these opportunities, however, important changes are required in Asia's innovation strategies, policies and management approaches. I highlight the considerable potential of "technology diversification" strategies as an intermediate option for attempts to move beyond "fast follower" strategies. A completely revised and updated version has been published as: "Pathways to innovation in Asia's leading electronics-exporting countries - a framework for exploring drivers and policy implications", International Journal of Technology Management, special issue on "Competitive Strategies of Asian High-Tech Firms; Vol. 29, 1/ 2: 6-20.

Internationalisation of Innovation: Why Chip Design Moving to Asia

This paper will appear in International Journal of Innovation Management, special issue in honor of Keith Pavitt, (Peter Augsdoerfer, Jonathan Sapsed, and James Utterback, guest editors), forthcoming. Among Keith Pavitt's many contributions to the study of innovation is the proposition that physical proximity is advantageous for innovative activities that involve highly complex technological knowledge But chip design, a process that creates the greatest value in the electronics industry and that requires highly complex knowledge, is experiencing a massive dispersion to leading Asian electronics exporting countries. To explain why chip design is moving to Asia, the paper draws on interviews with 60 companies and 15 research institutions that are doing leading-edge chip design in Asia. I demonstrate that "pull" and "policy" factors explain what attracts design to particular locations. But to get to the root causes that shift the balance in favor of geographical decentralization, I examine "push" factors, i.e. changes in design methodology ("system-on-chip design") and organization ("vertical specialization" within global design networks). The resultant increase in knowledge mobility explains why chip design - that, in Pavitt's framework is not supposed to move - is moving from the traditional centers to a few new specialized design clusters in Asia. A completely revised and updated version has been published as: " Complexity and Internationalisation of Innovation: Why is Chip Design Moving to Asia?," in International Journal of Innovation Management, special issue in honour of Keith Pavitt, Vol. 9,1: 47-73.

Global Production Networks and Industrial Upgrading in China: The Case in Electronics Contract Manufacturing.

The paper analyzes the networks of U.S. and Taiwan based electronics contract manufacturers in South China, today the world´s most important location for low-cost mass production in the electronics industry. Based on extensive empirical research, the paper traces the production sites, the organization of manufacturing, and the workforce policies of contract manufacturers in the region, and discusses perspectives and limits of industrial upgrading, especially with regard to the role of labor. In theoretical terms, the author attempts to integrate an analysis of "global flagship networks" with concepts of industrial sociology.

Efficiency in Bulgaria's schools : a nonparametric study

In Eastern European countries in large social sectors such as education, inefficiency and technical deficiencies are the legacy of the old command economy. The authors examine the technical efficiency of classroom use (defined as the number of classes per classroom in one transitional economy -- Bulgaria. They examine the concept of efficiency in 199 urban and rural municipalities, using data envelopment analysis to generate efficiency scores. Those scores -- discussed in terms of frequency and regional distribution -- are then regressed on several socioeconomic variables. The researchers find significant relationships between the efficiency scores, on the one hand, and, on the other, the proportion of students in the population under age 20 (demand indicator), the number of teachers (variable input), the percentage of the municipal budget spent on education, and the degree of urbanization. Efficiency in the use of classrooms (in terms of classes) varies considerably among municipalities, and the efficiency is highest in the capital city of Sofia. To the extent that some variation in efficiency reflects demand or demographic factos, there is little that policy can do to change the pattern. But some changes in municipal policy could increase the efficiency of classroom use without jeopardizing the fundamental learning objective. In some rural areas, for example, where there are few students and classroom utilization is low, it may be possible to consolidate several grades into multigrade classes and reduce the size of the teaching (and nonteaching) staff, while maintaining the quality of learning and maximizing the use of such fixed inputs as classrooms. To the extent that it is possible to use such classrooms more efficiently, savings could be generated in the municipalities that need them most: in demographically sparse, poor municipalities with a weak economic base. Those savings could then be reallocated to other educational essentials, such as equipment and materials.Teaching and Learning,Primary Education,Public Health Promotion,Health Monitoring&Evaluation,Environmental Economics&Policies,Environmental Economics&Policies,Teaching and Learning,Health Monitoring&Evaluation,Primary Education,Curriculum&Instruction