Publication

This working paper explores how East Asia's upgrading perspectives in the electronics industry are affected by transformations in global production networks (GPNs), with a focus on Malaysia. Vertical specialization, increased coordination and the emergence of China as a priority investment target for GPNs all provide new opportunities for industrial upgrading. The author discusses the difficulties of devising realistic upgrading strategies and the policies and institutions that could help successfully implement such strategies. The working paper concludes by highlighting the critical importance of the absorptive capacity of local suppliers and selective international knowledge sourcing.