Competitiveness, FDI and Technological Activity in East Asia
Show Less

Competitiveness, FDI and Technological Activity in East Asia

Edited by Sanjaya Lall and Shujiro Urata

This book addresses this imbalance with new country studies on the interaction between foreign direct investment (FDI) and technological activity in building export competitiveness. The book covers China, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand, highlighting different strategic approaches to building capabilities in industrial enterprises. The book also includes a general overview and studies of Japanese multinationals overseas.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 2: Foreign direct investment, technology development and competitiveness: issues and evidence

Sanjaya Lall


Sanjaya Lall1 This chapter provides the conceptual and empirical setting for the country studies on foreign direct investment (FDI), local technology development and competitiveness. International competitiveness is more than ever before at the core of industrial success, and it is taking new forms. Trade liberalization is forcing enterprises to face unprecedented global competition in domestic as well as foreign markets. The falling ‘costs of distance’ make this competition more immediate and intense than in the past. Rapid technical change forces producers constantly to upgrade their process technologies and introduce new products. It also changes patterns of trade, with product segments based on research and development (R&D) growing at the expense of less technology-intensive segments. Innovation itself is more costly and often more risky than before, with continuing high concentrations of advanced R&D spending by country and enterprise.2 As a result, there is greater inter-firm and cross-national collaboration and networking in innovative effort. One important consequence of liberalization and technical change is that technology and capital are far more mobile than before. This allows economic activity to be organized more rationally across national boundaries, with production linked across countries and functions and processes previously located together now separated and placed in far-flung sites to take advantage of fine cost, capability, logistic and market differences. Some of these changes in location and organization take place under market forces, with independent enterprises linking up in arm’s length contractual relations. Others take place in a hierarchical manner, with...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.