China’s Shallow Integration: Networked Production and the New Challenges for Late Industrialization

Steinfeld, Edward

doi:10.1016/j.worlddev.2004.04.003

Cited by 122 publications

(63 citation statements)

References 7 publications

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“…But while things are changing, the majority of those who export for export in China still source the majority of their materials and components from elsewhere (particularly in hi-tech industries). Linkages between export oriented areas and sectors and the rest of the domestic national economy remain relatively weak, and the technological and developmental spill-overs of export oriented growth remain, in many areas, to be attained (Steinfeld 2004;Lemoine and Unal-Kesenci 2004). At the very least, the footprint on the domestic Chinese economy is much smaller than the gross investment figures might lead us to conclude.…”

Section: Encouraged Investmentmentioning

confidence: 91%

Foreign Direct Investment in the PRC: Preferences, Policies and Performance

Breslin¹

2006

Policy and Society

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In establishing an investment policy in post-Mao China, policy was designed to gain the benefits of foreign direct investment (capital inflow, job cteation, export growth, and the upgrading of technology and skills) without suffering any of the perceived negative consequences. As a result policy makers attempted ro segregate the investment regime, restricting or prohibiting investment where domestic Chinese producers might be vulnerable to international competition, whilst encouraging investment to produce exports and where there was little or no domestic capacity. In the process, considerable autonomy over investment policy was devolved to local governments, which in turn were heavily influenced by the interests of foreign investors in shaping local investment strategies. From the mid-1990s, the policy of shielding domestic producers from competition was challenged from both external actors seeking the creation of a level playing field, and internal actors who questioned the logic of the status quo. Bur whilst there has been considerable Iiberalisation, including the extension offorms of investment and ownership (not least as a result of Chinas WTO entry criteria) conceptions of social stability. the potential impact of investment on such social stability, still remain crucial determinants of investment policy.

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Section: Encouraged Investmentmentioning

confidence: 91%

Foreign Direct Investment in the PRC: Preferences, Policies and Performance

Breslin¹

2006

Policy and Society

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“…This is important since not all GVC activities involve technology upgrading which could ensure sustainable competitive advantage and growth (Steinfeld 2004). Not even functional upgrading necessarily leads to greater value capture (Szalavetz 2012).…”

Section: Smart Specialisation-a Process For 'Discovering' New Gvc-relmentioning

confidence: 99%

Internationalising Smart Specialisation: Assessment and Issues in the Case of EU New Member States

Radošević

Stancova

2015

J Knowl Econ

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Smart specialisation is currently probably the largest innovation policy experiment in the world. Its aim is to move the EU less developed countries and regions on path of R&D-based growth. This transformation requires not only endogenous knowledge and technology accumulation building but also coupling with international knowledge and production networks. Yet, internationalisation does not seem to be a crucial component in the design and development of Research and Innovation Strategies for Smart Specialisation (RIS3), which are at odds with the strong dependence of the EU New Member States (EU-13) on FDI and global value chains. Our analysis is grounded in the key 'stylised facts' related to EU-13 R&D&I activities, and the complex link between innovation and internationalisation. Innovation systems in the EU-13 are fragmented and based on largely public R&D systems and on predominantly production-oriented foreign direct investment (FDI). This structural weakness calls for stronger support for innovation-oriented activities and for the integration of global value chains (GVCs) and FDI into local innovation systems. We explore the main obstacles to the internationalisation of smart specialisation and discuss ways to overcome them. We highlight the policy action areas related to providing support for technology upgrading in relation to the internationalisation of smart specialisation.

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“…This problem is not unique to the E2W industry, and is thought to be due to the way power at a state level is distributed amongst local governments. Though supporting evidence on why this occurs is insufficient, some speculate it is because local governments who control quality inspections like to support local manufacturers to boost tax revenue (Steinfeld, 2004). This support sometimes comes in the form of exemptions or minor fines for violating the standard (Weinert et al, 2007a).…”

Section: Force 3: Local Policy Support For E2wsmentioning

confidence: 99%

“…Companies typically expand into higher-margin product lines to escape fierce cost competition in the existing low-margin product line. Historical evidence of this trend exists in the E2W evolution from bicycle-style to scooter-style to motorcycle-style, and in other open-modular industries in China (Steinfeld, 2004). According to one E2W manufacturer, profit margin for luxury E2Ws is 8% vs. 5% for standard bicycle-style E2Ws (Weinert, 2006).…”

Section: Battery Improvementsmentioning

confidence: 99%

The future of electric two-wheelers and electric vehicles in China

et al. 2008

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a b s t r a c tThe method of force field analysis is used to examine the future technological and market evolution of electric two-wheelers (E2W) in China. The authors identify key forces driving and resisting future E2W market growth, root causes behind these forces, and important insights about the likelihood of a wide shift to larger three-and four-wheel electric vehicles (EV). The authors conclude that the key forces driving E2W market growth are: improvements in E2W and battery technology due to product modularity and modular industry structure, strong local regulatory support in the form of gasolinepowered motorcycle bans and loose enforcement of E2W standards, and deteriorating bus public transit service. The largest forces resisting E2W market growth are strong demand for gasoline-powered motorcycles, bans on E2Ws due to safety concerns in urban areas, and growing support for public transit. The balance of these forces appears to favor E2W market growth. This growth will likely drive vehicle electrification through continued innovation in batteries and motors, the switch from lead-acid to Li-ion batteries in E2Ws, and the development of larger E2Ws and EVs. There are however strong forces resisting vehicle electrification, including battery cost, charging infrastructure, and inherent complications with large battery systems.

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China’s Shallow Integration: Networked Production and the New Challenges for Late Industrialization

Cited by 122 publications

References 7 publications

Foreign Direct Investment in the PRC: Preferences, Policies and Performance

Foreign Direct Investment in the PRC: Preferences, Policies and Performance

Internationalising Smart Specialisation: Assessment and Issues in the Case of EU New Member States

The future of electric two-wheelers and electric vehicles in China

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