Guided by Marquardt's system-linked organizational learning model, thi
s article investigates the nature of and limits to latecomer-catchup l
earning engaged in by East Asian firms within the electronics industry
over the past three decades. This is basically an adaptive, re-active
, single-loop form of learning that emphasizes speed and enlargement o
f market share at the expense of technological depth and breadth. Chal
lenges for the 21st century revolve around the need to make a transiti
on from reverse engineering to breakthrough engineering; from an effic
iency-centered to a creativity-propelled mode of competitive stance; a
nd from knowledge exploitation to knowledge exploration in new critica
l areas such as design, software engineering, new product/process deve
lopment, marketing, R&D, management of strategic alliances with intern
ational partners, and the development of a vibrant local components an
d capital goods network. (C) 1998 Elsevier Science Inc.