Technological maturity and development without research: The challenge forMalaysian manufacturing

Propelled largely by direct investment via multinationals, Malaysia's manuf acturing sector has grown rapidly and is changing its output-mix. In 1992, the share of high-tech products in Malaysian manufacturing exceeded that of Japan, Korea or Taiwan. However, this 'maturity' was acquired without a st rong research base. This article provides a framework which looks at the ro le of research and development (R&D) in conferring technological maturity a nd assesses the progress Malaysian manufacturing has made in this regard. T he authors find that while multinationals have transferred many aspects of production, they have been slow in transferring R&D expertise. Neither has indigenous innovation filled this gap. Consequently, the longterm sustainab ility of the industrial transformation process in Malaysia is in jeopardy. The article concludes with suggestions for corrective policies.