Global production networks and upgrading perspectives in east Asia's electronics industry

The paper explores how East Asia's upgrading perspectives in the electronics industry are affected by three important transformations in global production networks (GPNs): i) structure: the emergence of increasingly complex "networks of networks" that juxtapose "original equipment manufacturers" and "contract manufacturers"; ii) coordination & contents: the increasing use of digital information systems to manage these networks, and to build "global information service networks" that complement networks centered on manufacturing; and iii) location: the emergence of China as a priority investment. target for GPNs in the electronics industry. The paper provides an important message for the management of innovation and technology in a globalizing, world: As GPNs have gradually enhanced the mobility of knowledge, this has created greater opportunities for East Asia to use network participation as a catalyst for further upgrading. But realizing this potential has also become more difficult for mid-sized countries like Malaysia. The best choice arguably is to move forward in incremental steps, and to build on existing strengths in assembly and volume manufacturing, by adding knowledge-intensive support services in sectors like "embedded software" and photonics.