HOLLOWING-OUT OR INTERNATIONAL DIVISION-OF-LABOR - PERSPECTIVE FROM THE CONSUMER ELECTRONICS INDUSTRY AND SINGAPORE

A study was conducted to ascertain whether technology transfer from mo re developed to less developed countries by multinational companies ne cessarily constitutes the hollowing-out of technological capability in the home countries. The consumer electronics industry as seen from th e perspective of Singapore is reviewed, and ten projects of new produc t development from seven multinational companies with subsidiaries loc ated in Singapore are analyzed for their job content and division of l abour. The study shows that Singapore is now a hub for technology tran sfer activities in Asia. It also shows that there is a division of lab our amongst an increasing number of countries rather than a hollowing- out of technological capability in Singapore or the home countries of the multinational companies.