Chapter

Cluster Dynamics in Malaysian Electronics

Michael H. Best

in The New Competitive Advantage

Published in print July 2001 | ISBN: 9780198297451
Published online November 2003 | e-ISBN: 9780191595967 | DOI: http://dx.doi.org/10.1093/0198297459.003.0006
Cluster Dynamics in Malaysian Electronics

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The capabilities and innovation perspective is applied to Malaysian electronics, a case of rapid growth and industrial development for over three decades but with disappointing productivity gains. In fact, Malaysia has not one but three electronics clusters. Each cluster has distinctive internal dynamics and is related to global production networks in distinctive ways. The most successful of the three regions in advancing local production capabilities has benefited from effective regional policy‐making and governance. The Penang Development Corporation is a model developmental agency that has coordinated the three elements of the productivity triad to create a world‐class high‐volume production system. However, the region is at an impasse: making the transition to new product development capabilities will require a substantial investment in advanced skill formation.

Keywords: clusters; developmental agency; electronics; Malaysia; Penang Development Corporation; production capabilities; productivity; regional governance; regional policy‐making; skill formation

Chapter.  9922 words.  Illustrated.

Subjects: Economic Systems

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