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2. Industrial Upgrading through Low-Cost and Fast Innovation—Taiwan's Experience
- Author:
- Dieter Ernst
- Publication Date:
- 09-2013
- Content Type:
- Working Paper
- Institution:
- East-West Center
- Abstract:
- This paper examines the forces that drive Taiwan's new strategy of "Upgrading through Low-Cost and Fast Innovation." The first section highlights characteristics of Taiwan's traditional "Global Factory" innovation model and examines the role of innovation policy in that model. Section 2 reviews fundamental weaknesses that define the requirements of Taiwan's new innovation strategy. Section 3 explores Taiwan's new strategy of "low-cost and fast innovation through domestic and global innovation networks." Finally, section 4 examines the role of government and key policies and initiatives in the IT industry.
- Topic:
- Government, Industrial Policy, and Science and Technology
- Political Geography:
- Israel and Taiwan
3. Standards, Innovation, and Latecomer Economic Development—A Conceptual Framework
- Author:
- Dieter Ernst
- Publication Date:
- 09-2013
- Content Type:
- Working Paper
- Institution:
- East-West Center
- Abstract:
- Little is known about the impact of standards on the economic development of countries which are latecomers to industrial manufacturing and innovation. Standardization is regarded primarily as a technical issue, and hence receives only limited high-level policy support.
- Topic:
- Development, Diplomacy, Health, Industrial Policy, and Labor Issues
4. Is the Information Technology Agreement Facilitating Latecomer Manufacturing and Innovation? India's Experience
- Author:
- Dieter Ernst
- Publication Date:
- 11-2013
- Content Type:
- Working Paper
- Institution:
- East-West Center
- Abstract:
- A defining characteristic of today's international trading system is that plurilateral trade agreements like the Information Technology Agreement (ITA) are gaining in importance relative to the gridlocked Doha round of multilateral trade negotiations. These more selective trade agreements pose new and so far little understood challenges for the governance of the international trading system, especially with regard to the distribution of liberalization gains among participants which differ in their stage of development, their institutions, and their resources and capabilities.
- Topic:
- Development, Economics, Industrial Policy, International Trade and Finance, and Science and Technology
- Political Geography:
- South Asia
5. Global Technology Sourcing in China's Integrated Circuit Design Industry: A Conceptual Framework and Preliminary Findings
- Author:
- Barry Naughton and Dieter Ernst
- Publication Date:
- 08-2012
- Content Type:
- Working Paper
- Institution:
- East-West Center
- Abstract:
- The paper examines the role of global technology sourcing, and its drivers and impacts in China's integrated circuit (IC) design industry. IC design is one of the priority targets of China's innovation policy, as codified especially in the ―Strategic Emerging Industries‖ initiative. At the same time, however, China's IC design industry is deeply integrated into the vertically disintegrated global semiconductor industry, through markets, investment and technology. The paper highlights a fundamental challenge for China's innovation strategy: How can China reconcile its primary objective of strengthening indigenous innovation with the benefits that it could reap from its deep integration into international trade and into global networks of production and innovation?
- Topic:
- Economics, Industrial Policy, International Trade and Finance, and Science and Technology
- Political Geography:
- China and Israel
6. America's Voluntary Standards System--A "Best Practice" Model for Innovation Policy?
- Author:
- Dieter Ernst
- Publication Date:
- 02-2012
- Content Type:
- Working Paper
- Institution:
- East-West Center
- Abstract:
- For its proponents, America's voluntary standards system is a "best practice" model for innovation policy. Foreign observers however are concerned about possible drawbacks of a standards system that is largely driven by the private sector. There are doubts, especially in Europe and China, whether the American system can balance public and private interests in times of extraordinary national and global challenges to innovation.
- Topic:
- Development, Globalization, Industrial Policy, International Trade and Finance, Science and Technology, Intellectual Property/Copyright, and Governance
- Political Geography:
- China, America, and Europe
7. Diverging Trajectories: Economic Rebalancing and Labor Policies in China
- Author:
- Boy Lüthje
- Publication Date:
- 04-2012
- Content Type:
- Working Paper
- Institution:
- East-West Center
- Abstract:
- The transformation of work and labor policies is one of the most underresearched aspects of China's political economy in recent decades. Western perceptions of Chinese workplaces are mostly informed by images of privatization and downsizing of traditional state-socialist enterprises, or by the unfamous sweatshops serving the production networks of global brandname companies under miserable conditions However, recent research reveals that labor politics in China have become highly diversified, in spite of the apparently centralized character of the political regime. At the same time, labor conflicts are on the rise across industries and regions.
- Topic:
- Industrial Policy, Political Economy, Labor Issues, and Sociology
- Political Geography:
- China
8. Who Should Bear the Cost of China's Carbon Emissions Embodied in Goods for Exports?
- Author:
- ZhongXiang Zhang
- Publication Date:
- 11-2011
- Content Type:
- Working Paper
- Institution:
- East-West Center
- Abstract:
- China's capital-intensive, export-oriented, spectacular economic growth since launching its open-door policy and economic reforms in late 1978 not only has created jobs and has lifted millions of the Chinese people out of poverty, but also has given rise to unprecedented environmental pollution and CO2 emissions. While estimates of the embedded CO2 emissions in China's trade differ, both single country studies for China and global studies show a hefty chunk of China's CO2 emissions embedded in trade. This portion of CO2 emissions had helped to turn China into the world's largest carbon emitter, and is further widening its gap with the second largest emitter. This raises the issue of who should be responsible for this portion of emissions and bearing the carbon cost of exports. China certainly wants importers to cover some, if not all, of that costs. While China's stance is understandable, this paper has argued from a broad and balanced perspective that if this is pushed too far, it will not help to find solutions to this issue. On the contrary it can be to China's disadvantage for a number of reasons. However, aligning this responsibility with China does not necessarily suggest the sole reliance on domestic actions. In that context, the paper recommends specific actions that need to be taken internationally as well as domestically in order to effectively control the embedded CO2 emissions in China's trade.
- Topic:
- Climate Change, Economics, Industrial Policy, and International Trade and Finance
- Political Geography:
- China
9. Korea's Growth Performance: Past and Future
- Author:
- Marcus Noland
- Publication Date:
- 11-2011
- Content Type:
- Working Paper
- Institution:
- East-West Center
- Abstract:
- South Korea is arguably the premier development success story of the last half century. For 47 years starting in 1963, the economy averaged 7 percent real growth annually, and experienced only two years of economic contraction: 1980 after the second oil shock and the assassination of President Park Chung-hee, and 1998 at the nadir of the Asian financial crisis. At the start of that period South Korea had a per capita income lower than that of Mozambique or Bolivia; today it is richer than Spain or New Zealand, and was the first Asian and first non-G7 country to host a summit of the G20, the unofficial steering committee of the world economy.
- Topic:
- Demographics, Development, Economics, Industrial Policy, International Trade and Finance, and Political Economy
- Political Geography:
- Israel, Asia, South Korea, Spain, Mozambique, New Zealand, and Bolivia
10. Rent(s) Asunder: Sectoral Rent Extraction Possibilities and Bribery by Multinational Corporations
- Author:
- Nathan Jensen, Edmund Malesky, and Dimitar Gueorgiev
- Publication Date:
- 11-2011
- Content Type:
- Working Paper
- Institution:
- East-West Center
- Abstract:
- We argue that openness to foreign investment can have differential effects on corruption, even within the same country and under the exact same domestic institutions over time. Our theoretical approach departs from standard political economy by attributing corruption motives to firms as well as officials. Rather than interpreting bribes solely as a coercive “tax” imposed on business activities, we allow for the possibility that firms may be complicit in using bribes to enter protected sectors. Thus, we expect variation in bribe propensity across sectors according to expected profitability which we proxy with investment restrictions. Specifically, we argue that foreign investment will not be associated with corruption in sectors with fewer restrictions and more competition, but will increase dramatically as firms seek to enter restricted and uncompetitive sectors that offer higher rents. We test this effect using a list experiment, a technique drawn from applied psychology, embedded in a nationally representative survey of 10,000 foreign and domestic businesses in Vietnam. Our findings show that the impact of domestic reforms and economic openness on corruption is conditional on polices that restrict competition by limiting entry into the sector.
- Topic:
- Development, Industrial Policy, International Trade and Finance, Political Economy, and Foreign Direct Investment
- Political Geography:
- Israel and Vietnam