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| 1 |
ID:
154537
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| Summary/Abstract |
This research note investigates the nature of Taiwan's economic links with Southeast Asia. While it is assumed that the economic links are driven by investment and formal trade agreements, we identify a more intertwined dynamic of "deep integration" through Global Value Chains (GVCs). We first examine the macro data of Taiwanese direct investment and bilateral trade with ASEAN member countries. Next, we discuss "the trade-investment-service-IP nexus" through the case of the textile and apparel industry in Taiwan, which evolved with the GVC led by brand marketers in advanced countries, cementing economic linkages between Taiwan and Southeast Asia. We then explore new patterns of Taiwanese development through exporting "good enough innovations" and "total solutions" in the region.
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| 2 |
ID:
087433
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| Publication |
2009.
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| Summary/Abstract |
Offshore R & D by multinational corporations (MNCs) has increasingly involved the developing world in East Asia, initially Taiwan and Korea but more recently China and India. However, the R & D mandates of foreign R & D facilities in this region tend not to follow the paths of evolutionary models. To explain this phenomenon, this article presents a conceptual framework, essentially based on Dunning's eclectic paradigm, with a strong flavor of the evolutionary approach to technology, but which, in some cases, also allows for leapfrogging competition. In terms of empirical work, the article also explores the relationship between MNCs' overseas R & D mandates and the locational advantage of the host country by conducting case studies on flagship MNCs' R & D facilities in the information technology sector on both sides of the Taiwan Strait. The results show some interesting contrasts across the Taiwan Strait that run counter to the evolutionary perspective. There are grounds to suggest that such contrasts have much to do with the locational advantages Taiwan and China each possess. Further implications are drawn to enrich the current understanding of R & D internationalization.
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