The economic crisis of 1997 called East Asia''s economic miracle into question and generated widespread criticism of the regions developmental models. However, the crisis did little to alter the growing economic integration of the region which is being forged through American, Japanese and Chinese firms who have created cross-border production networks - led by multinational corporations which 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 designed to foster and to exploit the region''s highly heterogenous technology, skills and know-how.
Empirical studies of firms in the US, Japan, Korea, Taiwan and Singapore reveals that the organisation of cross border production networks has important competitive consequences. For technology-sensitive sectors like 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 mobilising 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, corporate strategy and managers in Asia and the electronics industry.