EAST-ASIAN LATECOMER FIRMS - LEARNING THE TECHNOLOGY OF ELECTRONICS

This paper introduces the idea of the latecomer firm to explore how th e four dragons of East Asia (South Korea, Taiwan, Hong Kong and Singap ore) learned to innovate in electronics. The paper examines the histor ical progress of technological development and sets out the institutio nal mechanisms by which firms acquired foreign technology. Using one c ase study from each country, the paper explores how East Asian firms l earned process and product skills and know-how. Within the firms, subc ontracting and original equipment manufacture (OEM) mechanisms acted a s a training school for latecomers, enabling them to overcome entry ba rriers and to assimilate manufacturing and design technology. The need s of export customers drove the pace of learning and acted as a focusi ng device for technological assimilation, adaptation and innovation. T o interpret the findings, a simple model of how latecomers linked thei r technological learning to export markets is put forward. In contrast with the research and development (R&D) and design-led strategies typ ical of leaders and followers, latecomers began with incremental impro vements to manufacturing processes which led on to minor product innov ations. The evidence suggests that the origins and paths of the East A sian latecomers continue to influence their strategies, structures and technological orientations.