Uneven Paths of Development: Innovation and Learning in Asia and Africa

253 Pages·2009·8.37 MB·English

by  Banji Oyelara-oyeyinka

Uneven Paths of Development
Dedication
Nadu, Fola, Banke and Koye
and
Krishna, Dayita and Dharmin.
They made it all worthwhile.
Uneven Paths of
Development
Innovation and Learning in Asia and
Africa
Banji Oyelaran-Oyeyinka
Director, Monitoring and Research Division (MRD),
UN-HABITAT, Kenya, and Professorial Fellow at
UNU-MERIT, Netherlands
Rajah Rasiah
Professor of Technology and Innovation Policy, Faculty
of Economics and Administration, University of Malaya,
Malaysia and Professorial Fellow at UNU-MERIT,
Netherlands
Edward Elgar
Cheltenham, UK (cid:129) Northampton, MA, USA
© UNU-MERIT 2009
All rights reserved. No part of this publication may be reproduced, stored
in a retrieval system or transmitted in any form or by any means, electronic,
mechanical or photocopying, recording, or otherwise without the prior
permission of the publisher.
Published by
Edward Elgar Publishing Limited
The Lypiatts
15 Lansdown Road
Cheltenham
Glos GL50 2JA
UK
Edward Elgar Publishing, Inc.
William Pratt House
9 Dewey Court
Northampton
Massachusetts 01060
USA
A catalogue record for this book
is available from the British Library
Library of Congress Control Number: 2008023886
ISBN 978 1 84720 906 1
Printed and bound in Great Britain by MPG Books Ltd, Bodmin, Cornwall
Contents
List of fi gures viii
List of tables ix
List of boxes xii
Preface xiii
1 Learning to innovate: information hardware sector in
Asia and Africa 1
1.1 Introduction 1
1.2 Information hardware sector: national status and
global trends 6
1.3 Innovation policies and information hardware 15
1.4 Learning and innovation: meaning and mechanisms 18
1.5 Innovation in latecomer development 20
1.6 Learning and innovation capability building 22
1.7 Sectoral systems of innovation 23
1.8 A model for examining learning and innovation 27
1.9 Outline of the book 34
Appendix 38
2 The rapid rise of China 39
2.1 Introduction 39
2.2 Historical backdrop 41
2.3 Chinese computer sectoral innovation system 44
2.4 Knowledge base of the sectoral system 47
2.5 Innovation network and industry–university linkages 50
2.6 Export spur 58
2.7 Systemic integration 59
2.8 Innovation policies fostering the computer hardware
system 61
2.9 Summing up 66
Appendix 67
3 Low value-added operations in Indonesia 68
3.1 Introduction 68
3.2 Methodology and data 69
v
vi Uneven paths of development
3.3 Systemic development 72
3.4 Technological intensity and complexity 77
3.5 Summing up 79
4 Rapid expansion with slow upgrading in Malaysia 81
4.1 Introduction 81
4.2 Methodology and data 82
4.3 Systemic development in Penang and Johor 82
4.4 Integration in global markets and value chains 89
4.5 Learning and innovation 92
4.6 Technological intensities, wages and productivity 94
4.7 Summing up 95
5 Making a diffi cult transition in Mauritius 97
5.1 Introduction 97
5.2 The information technology sector in Mauritius 98
5.3 Basic and technological infrastructure 109
5.4 Collaboration and inter-fi rm learning 110
5.5 Summing up 112
Appendix 114
6 Weak institutions constrain growth in Nigeria 115
6.1 Introduction 115
6.2 Methodology 119
6.3 Empirical fi ndings 120
6.4 Inter-fi rm learning and systemic cohesion 121
6.5 Institutional constraints 123
6.6 Technology sources, product upgrading and government
support 124
6.7 Econometric analysis 128
6.8 Summing up 131
7 Information hardware at incipient phase in South Africa 135
7.1 Introduction 135
7.2 Hardware and software 135
7.3 Sources of data 136
7.4 Evolution of the sector 138
7.5 Policy and support structures 142
7.6 Survey results 146
7.7 Innovation and performance of fi rms 156
7.8 Government support 161
7.9 Empirical results of innovation analysis 162
Contents v ii
7.10 Firm-level performance 163
7.11 Summing up 166
8 Taiwan’s move from follower to leader 169
8.1 Introduction 169
8.2 Methodology and data 170
8.3 Systemic development 173
8.4 Technological intensity and complexity 181
8.5 Summing up 184
9 Conclusions and policy implications 186
9.1 Introduction 186
9.2 Explaining uneven outcomes 186
9.3 Compositional differences 192
9.4 Demand conditions 194
9.5 Uneven technological capabilities 195
9.6 Uneven networking 198
9.7 Uneven institutional support policies 200
9.8 Summing up 206
9.9 Policy implications for latecomers 207
References 215
Index 229
Figures
1.1 Leading IH-producing locations 1990–2004 10
1.2 Growth of export value of Asia Pacifi c, Japan and
ROW regions 13
1.3 Average sales prices for notebook sales in Taiwan 15
1.4 Systemic quad for driving long-term growth 26
2.1 Profi t rate of the computer and office equipment industry
in China 41
2.2 Production volume and sales of personal computers 45
2.3 Production value of computer clones manufacturing
industry 2001–04 46
4.1 Market and value chain links of IH fi rms, Penang and
Johor 2004 90
5.1 Percentage of new start-up fi rms during the different fi ve-
year periods 103
5.2 Main activities of hardware fi rms 104
A5.1 Changes in cooperation with main local and foreigner
buyers (2005) 114
7.1 South African IT market revenue proportions, 2005 138
8.1 Share of electronics production and exports in
manufacturing, Taiwan, 1986–2001 176
8.2 Taiwanese share in global market, 1999 177
viii
Tables
1.1 Average annual growth rate, Africa and Asia 8
1.2 Domestic export value rankings of world-leading IH
producer nations 11
1.3 Exports of IH hardware by regions 12
1.4 Country shares in world IH hardware exports 14
1.5 Taiwan fi rm production in China 16
A1.1 Country and sectors 38
2.1 Notebook PC production in China 43
2.2 Notebook PC market share in 2004 43
2.3 Computer manufacturing industry sales and profi ts, 2004 46
2.4 Industrial production value and profi ts by size, computer
manufacturing fi rms, 2004 47
2.5 Turnover of computer clones manufacturing industry at
selected provinces/cities in 2004 47
2.6 Innovation-relevant personnel and expenses, 1995–2002 48
2.7 S&T organizations, computer industry, 1995–2002 48
2.8 S&T expense structure of the computer industry 49
2.9 Innovation outputs of the computer industry 50
2.10 Import and export, computer products, 1999–2003 58
2.11 Industrial production value and profi ts, computer clones
manufacturing fi rms, 2004 60
2.12 Industrial production value and profi ts, computer
manufacturing and peripheral fi rms, 2004 60
2.13 Main policy instruments to promote Chinese computer
sector in the 1980s 63
A2.1 Evolution of organizations in the Chinese computer industry 67
3.1 Technological intensities, IH fi rms, Indonesia sample 2001 70
3.2 Technological complexity, IH fi rms, Indonesia sample 2001 71
3.3 Breakdown of sampled data, IH fi rms, Indonesia 2001 72
3.4 Basic infrastructure, Indonesia sample 2001 73
3.5 High-tech infrastructure, Indonesia sample 2001 74
3.6 Specialization, IH fi rms, Penang and Johor 2004 75
3.7 Network cohesion, Indonesia sample 2001 76
3.8 Technological intensities, Indonesia sample 2001 77
3.9 Technological complexity, IH fi rms, Indonesia sample 2001 78
ix