Supply Chain Positioning and Innovation: Taiwan's Challenge

17 Pages Posted: 23 Feb 2016

See all articles by Tain-Jy Chen

Tain-Jy Chen

Chung-Hua Institution for Economic Research

Date Written: January 20, 2016

Abstract

We argue that supply chain positioning affects the ability and scope of innovation. This is so because positions on the supply chains affect the access to knowledge and the ability to appropriate the value coming out of innovation. Knowledge determines the capability of innovation and appropriation power determines the incentive of innovation. Most Taiwanese firms position themselves as suppliers of intermediate goods. They innovate in collaboration with end users that are typically brand marketers of final goods and services. Their innovations manifest several characteristics that are closely associated with their position on the global value chains.

Suggested Citation

Chen, Tain-Jy, Supply Chain Positioning and Innovation: Taiwan's Challenge (January 20, 2016). Working Paper, East-West Center Workshop on Mega-Regionalism - New Challenges for Trade and Innovation. Available at SSRN: https://ssrn.com/abstract=2745505 or http://dx.doi.org/10.2139/ssrn.2745505

Tain-Jy Chen (Contact Author)

Chung-Hua Institution for Economic Research ( email )

75 Chang-Hsing Street
Taipei 106
Taiwan

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