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Strategic CouplingEast Asian Industrial Transformation in the New Global Economy$
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Henry Wai-chung Yeung

Print publication date: 2016

Print ISBN-13: 9781501702556

Published to Cornell Scholarship Online: August 2016

DOI: 10.7591/cornell/9781501702556.001.0001

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Industrial Specialization and Market Leadership in Marine Engineering and Semiconductors

Industrial Specialization and Market Leadership in Marine Engineering and Semiconductors

(p.111) Chapter 5 Industrial Specialization and Market Leadership in Marine Engineering and Semiconductors
Strategic Coupling

Henry Wai-chung Yeung

Cornell University Press

This chapter examines the strategic coupling of East Asian firms with the global production networks (GPN) of advanced industrialized economies through industrial market specialization. In both industries, the developmental state performed a classic role of the “big push” during the initial phase of their development in the 1970s and the 1980s. These initial public subsidies and state-directed investments could help domestic producers quickly upscale to low-cost leaders in the global market. Their eventual domination in both industries since the 2000s and beyond was no longer based simply on these scale economies, but rather on new advantages developed through firm-specific technological and organizational innovations. The chapter discusses how in this partnership, leading East Asian firms have acquired unique competitive advantages on the basis of new in-house process and product technologies in shipbuilding and semiconductor production.

Keywords:   East Asian firms, global production networks, advanced industrialized economies, international market specialization, shipbuilding, semiconductor production

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