Innovation Offshoring and Asia's Electronics Industry - The New Dynamics of Global Networks

International Journal of Technological Learning, Innovation and Development,Vol.1, No.4

26 Pages Posted: 27 Apr 2016

See all articles by Dieter Ernst

Dieter Ernst

East-West Center; Centre for International Governance Innovation (CIGI)

Date Written: May 25, 2008

Abstract

This paper explores how innovation offshoring gives rise to Global Innovation Networks (GINs) in the electronics industry. The focus is on chip design. The paper documents the scope of offshoring and the progress achieved in the complexity of design stages and in capability upgrading in Asia. The paper explores the forces that are responsible for the organisational and geographical mobility of innovation within GINs emphasising their systemic nature. The paper argues that innovation offshoring is likely to accelerate Asia's transformation from the 'global factory' model to 'upgrading through innovation'. But massive challenges must be mastered before Asia's leading electronics exporting countries can exploit these opportunities. Such challenges result from the very demanding requirements that locations need to fulfil in order to qualify for R&D investments by Transnational Corporations (TNCs).

Keywords: innovation offshoring, GINs, global innovation networks, chip design, Asian electronics, TNCs, transnational corporations, TNCs, global factory, global value chains

Suggested Citation

Ernst, Dieter, Innovation Offshoring and Asia's Electronics Industry - The New Dynamics of Global Networks (May 25, 2008). International Journal of Technological Learning, Innovation and Development,Vol.1, No.4. Available at SSRN: https://ssrn.com/abstract=2770067

Dieter Ernst (Contact Author)

East-West Center ( email )

1601 East-West Road
Honolulu, HI 96848-1601
United States

Centre for International Governance Innovation (CIGI) ( email )

57 Erb Street West
Waterloo, Ontario N2L 6C2
Canada

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