Global Value Chains in the Electronics Industry : Was the Crisis a Window of Opportunity for Developing Countries?

Sturgeon, Timothy J.Kawakami, Momoko2012-03-192012-03-192010-09-01https://hdl.handle.net/10986/3901This paper presents evidence of the importance of electronics global value chains (GVCs) in the global economy, and discusses the effects of the recent economic crisis on the industry. The analysis focuses on how information is exchanged and introduces the concept of "value chain modularity." The authors identify three key firm level actors -- lead firms, contract manufacturers, and platform leaders -- and discuss their development, or "co-evolution" in the context of global integration. Company, cluster, and country case studies are then presented to illustrate how supplier capabilities in various places have developed in the context of electronics global value chains. The findings identify some of the persistent limits to upgrading experienced by even the most successful firms in the developing world. Four models used by developing country firms to overcome these limitations are presented: (1) global expansion though acquisition of declining brands (emerging multinationals); (2) separation of branded product divisions from contract manufacturing (original design manufacturing (ODM) spinoffs); (3) successful mixing of contract manufacturing and branded products (platform brands) for contractors with customers not in the electronic hardware business; and (4) the founding of factory-less product firms that rely on global value chains for a range of inputs, including production (emerging factory-less start-ups).CC BY 3.0 IGOACCESSORIESADOPTION OF INFORMATIONANALOGAPPLIANCESATMAUTOMATIONAUTOMOBILESAUTOMOTIVEBACKUPBACKUP SYSTEMSBARCODEBASICBEST PRACTICESBRANDBRAND NAMESBRANDSBUILDING AUTOMATIONBUSINESS MODELBUSINESS PROCESSESBUSINESS RELATIONSHIPSBUSINESSESBUYERBUYERSCACHECACHE MEMORYCADCALCULATORSCAPITAL INVESTMENTSCELLPHONECELLULAR PHONESCENTRAL PROCESSING UNITCODESCOMMODITIESCOMMUNICATIONS NETWORKSCOMPACT DISKSCOMPANYCOMPETITIVE ADVANTAGECOMPETITORCOMPETITORSCOMPONENTSCOMPUTER MONITORSCOMPUTER PERIPHERALSCOMPUTER SYSTEMSCOMPUTERSCOMPUTINGCONNECTORSCONSUMER ELECTRONICSCONSUMER GOODSCORPORATIONCPUCPUSCUSTOMER BASECUSTOMER DEMANDSDATA PROCESSINGDAY-TO-DAY MANAGEMENTDIGITALDIGITAL SIGNALDIGITAL SIGNAL PROCESSINGDIGITAL SYSTEMSDIGITAL VIDEODIGITIZATIONDISK DRIVESDISTRIBUTION NETWORKSDISTRIBUTION SERVICESDIVERSIFICATIONELECTRONICSELECTRONICS INDUSTRIESELECTRONICS INDUSTRYELECTRONICS TECHNOLOGYEMPLOYMENTEND USERSEND-USERENGINEERINGENTERPRISE COMPUTINGENTERPRISE RESOURCE PLANNINGENTERTAINMENTEQUIPMENTEXPANSIONFINANCIAL RISKFINISHED PRODUCTSFIRMSFLOW OF INFORMATIONFOREIGN DIRECT INVESTMENTFUNCTIONALITYGENERAL PUBLICGLOBAL ECONOMYGLOBAL MARKETSGLOBALIZATIONGRAPHICSHARD DISKHARDWAREHOME MARKETHORIZONTAL INTEGRATIONIMAGEIMAGINGINDUSTRIAL DEVELOPMENTINDUSTRIAL PRODUCTIONINDUSTRIAL STRUCTUREINFORMATION SERVICESINFORMATION SYSTEMSINFORMATION TECHNOLOGIESINFORMATION TECHNOLOGYINITIAL PUBLIC OFFERINGINNOVATIONINSPECTIONINTEGRATED CIRCUITSINTELLECTUAL ASSETSINTERMEDIATE GOODSINTERMEDIATE PRODUCTSINTERNATIONAL TRADEINTEROPERABILITYINVENTORIESINVENTORYINVENTORY MANAGEMENTIT INFRASTRUCTUREKNOW-HOWLABOR MARKETSLICENSINGLINUXMANUFACTURERMANUFACTURERSMANUFACTURINGMANUFACTURING INDUSTRYMARKET ENTRYMARKET POWERMARKET SEGMENTSMARKET SHAREMARKET SHARESMARKETINGMNCMOBILE COMPUTINGMOBILE PHONEMOBILE PHONESMOTHERBOARDSMOVEMENT OF GOODSMULTINATIONALMULTINATIONAL CORPORATIONSMULTINATIONALSNAVIGATIONNETWORKINGNETWORKSNEW MARKETSNEXT GENERATIONOPEN STANDARDSOPEN SYSTEMSOPERATING SYSTEMOPERATING SYSTEMSOUTSOURCINGPARTYPCPCSPERIPHERAL DEVICESPERSONAL COMPUTERPERSONAL COMPUTERSPHYSICAL GOODSPOWER CONSUMPTIONPRICE COMPETITIONPRINTED CIRCUIT BOARDSPRIVATE COMMUNICATIONSPRODUCT CATEGORIESPRODUCT DESIGNPRODUCT DESIGNSPRODUCT DEVELOPMENTPRODUCT INNOVATIONPRODUCT QUALITYPRODUCTION PROCESSPRODUCTION PROCESSESPRODUCTIVITYPROTOTYPEPUBLISHINGPURCHASINGR&DRADIORESULTRESULTSRETAILRETAIL OUTLETSRETAIL PRICERETAIL STORESSALESALESSANSATELLITESSCANNERSSEARCHSEMICONDUCTORSEMICONDUCTORSSERVERSERVERSSHOPSIGNAL PROCESSINGSILICONSMART PHONESSOFTWARE APPLICATIONSSOFTWARE DEVELOPMENTSOFTWARE VENDORSSPINOFFSPINOFFSSPREADSTANDARDIZATIONSTORAGE DEVICESSTORESUBSTITUTESUBSTITUTIONSUPPLIERSUPPLIERSSUPPLY CHAINSYSTEM SOFTWARESYSTEMS DESIGNTECHNOLOGICAL CAPABILITIESTECHNOLOGICAL CAPABILITYTECHNOLOGICAL DEVELOPMENTTECHNOLOGICAL INFORMATIONTELECOMMUNICATIONSTELEVISIONTELEVISIONSTIME ZONESTRANSISTORVALUE CHAINVALUE CHAINSVENDORVERTICAL INTEGRATIONVIDEO GAMEVOLATILITYWAREHOUSEWEBWHOLESALE PRICEWHOLESALE TRADEGlobal Value Chains in the Electronics Industry : Was the Crisis a Window of Opportunity for Developing Countries?World Bank10.1596/1813-9450-5417