The geography of learning and knowledge acquisition among Asian latecomers

Abstract

This paper examines the geography of technological learning and knowledge acquisition among Taiwanese and Korean firms. Specifically it focuses on the knowledge sourcing experience of Asian manufacturing latecomers in the United States (US). The Asian latecomer model of learning is characterized by a triangular spatial division of knowledge sourcing and technological production that involves the transfer and circulation of knowledge across multiple spatial scales. At the regional level, Korean and Taiwanese firms rely on local learning systems in the form of science parks to create favorable domestic agglomeration economies that are conducive for knowledge accretion. At the trans-regional level, non-core R&D and the manufacturing of technology-driven products are geographically concentrated in China. Lastly, local and trans-regional learning are supplemented by international sourcing of knowledge through the location and investment of R&D facilities in the US. To the extent that extra-local knowledge sourcing in the US is associated with the acquisition of new knowledge forms, such a multiscalar spatial strategy is expected to help transform Asian learners from technology latecomer to technology newcomer status.

Cluster considerations and Korean subsidiaries in the US

“…The subsidiaries in clusters, not surprisingly, have more autonomy in downstream activities such as information sharing and cost control. This reinforces the power and control hierarchy of these intra-firm networks, and provides some specific insight into research results generated by other authors, specifically Birkinshaw and Hood (2000) and Poon et al (2006), concerning the activity of Korean firms in the US. All firms, irrespective of location in an industry cluster, report low aggregate levels of autonomy when it comes to obtaining finance, even though they are located in one of the most liberal capital markets in the world-the United States.…”

“…This finding runs contrary to the previously discussed hypothesized autonomy granted to firms in clusters derived from the core competency approach, but adds further insight to the conclusions drawn by Poon et al (2006). The authors', in their analysis of Korean subsidiaries in the US, find that there is more emphasis on product improvement than on product development.…”

“…In fact, the highest percentage of employees hired by subsidiary managers is clearly from US competitors, a finding that helps to explain the tendency of Korean subsidiaries to emphasize proximity to US competitor firms (Poon et al 2006). Roughly 24% of managers at chaebol subsidiaries and 22% of managers at non-chaebol firms were hired away from a US competitor.…”

“…While there have been studies (e.g. Poon et al 2006) that have addressed specificities of extra territorial subsidiary motivations in general, the verdict is still out where foreign subsidiary activity in clusters is concerned. Indeed, research on Korean firm activity reveals few specifics with regard to firm activity in extra-local clusters.…”

Geographies of production in 3D: Theoretical and research implications stemming from additive manufacturing

“…Advanced capital machinery production, for example, tends to stay within a relatively select number of locations (Kalafsky, 2006). In essence, some signs point to the actual manufacture of these types of machinery following the same trajectories described within Vernon's (1966Vernon's ( , 1979 product life cycle framework, or, in terms of East Asia's fast followers, perhaps a 'reverse product life cycle' (Poon et al, 2006). Still, as evidenced by the seminal work of Gertler (1995), proximity to manufacturing-based machine tool suppliers is placed at a premium for a variety of reasons, but primarily service oriented in nature.…”