TAILIEUCHUNG - International Production Networks in Asia

For some time, the University of California Berkeley Roundtable on the International Economy (BRIE) has been examining regionalism in the Asia- Pacific and Western Europe (see ). Much of the extant literature on this topic has focused on the causes and consequences of formal inter-governmental agreements. BRIE’s research, led by Michael Borrus, Dieter Ernst, and John Zysman, paid greater attention to the underlying corporate decisions and new organizational forms that have driven integration at the level of the market. BRIE’s work has shown how those market and corporate forces have strong political implications not only for economic outcomes and policy choices, but for security questions as well | International Production Networks in Asia Rivalry or riches Edited by Michael Borrus Dieter Ernst and Routledge Advances in Asia-Pacific Business o. Br. Also available as a printed book see title verso for ISBN details International Production Networks in Asia The economic crisis of 1997 called East Asia s economic miracle into question and generated widespread criticism of the region s developmental models. However the cisis did little to alter the growing economic integration of the region which is being forged through American Japanese and Chinese firms which have created cross-border production networks led by multinational corporations that span the entire value-chain in a number of industries. This book addresses the changing nature of high-tech industries in Asia particularly in the electronics sector where these networks are increasingly dsigned to foster and to exploit the region s highly heterogeneous technology skills and know-how. Empirical studies of firms in the USA Japan Korea Taiwan and Singapore reveal that the organization of cross-border production networks has important competitive consequences. For technology-sensitive sectors such as electronic products the definition of standards is a critical element of competition product life cycles are short and technological change is rapid and subject to disruptive innovations. In such markets cost-competitiveness must be combined with product differentiation and speed to market. Cross-border networks allow firms to combine these very different market demands effectively. And despite fears that American firms were losing ground to their Asian competitors the American electronics industry has perhaps been the most effective in mobilizing these networks to competitive advantage. These up-to-date findings will be invaluable to all those involved in high-tech production networks in the Asian Pacific market or corporate strategy and to managers and policy-makers in Asia and the electronics industry. Michael

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