Uneven Paths of Development

Uneven Paths of Development

Innovation and Learning in Asia and Africa

Banji Oyelaren-Oyeyinka and Rajah Rasiah

This book focuses on what can be learned from the complex processes of industrial, technological and organizational change in the sectoral system of information hardware (IH). The IH innovation system is deliberately chosen to illustrate how sectors act as seeds of economic progress. Detailed firm-level studies were carried out in seven countries, three in Africa (Nigeria, Mauritius and South Africa) and four in Asia (China, Taiwan, Malaysia and Indonesia).

Chapter 2: The Rapid Rise of China

Banji Oyelaren-Oyeyinka and Rajah Rasiah

Subjects: development studies, development economics, economics and finance, development economics, economics of innovation, innovation and technology, economics of innovation


INTRODUCTION The Chinese computer industry started relatively late compared to the much longer history of this sector in the West, but the sector has been developing very rapidly since the 1980s. Currently, China, including Taiwan, has become the number three global computer manufacturing country. After China joined the World Trade Organization (WTO), it took advantage of its provision and the benefits, and now the electronics industry in China has risen to number one among all the industries in the national economy ranked by growth rate, industrial size and the growth rate and size of its exports. In 2004 China’s IH products registered a manufactured value added of RMB1880 billion, which was an increase of 34 per cent over the preceding year. Added value of the industry increased at the same rate and reached RMB400 billion. The value of IT exports totalled US$141 billion, an increase of 53 per cent over the 2003 figure, which was considerably higher than China’s overall increase in exports. Among all the sub-sectors of the electronics industry, the computer industry has been growing very rapidly in recent years as the scope of national informatics is enlarged and the demand for computers rises. In 2007, it constituted the largest proportion of the Chinese electronics products manufacturing industry. In 2003, the production and sales size of the computer industry in China was 33.6 per cent of the total information technology (IT) industry. The Chinese computer industry structure is composed mainly of computer hardware, which constitutes 80...

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