Institutional Support, Regional Trade Linkages and Technological Capabilities in the Semiconductor Industry in Malaysia

Rajah Rasiah and Yap Xiao Shan
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Yap Xiao Shan: Department of Development Studies, University of Malaya

No DP-2015-16, Working Papers from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: This article examines the relationship between host-site institutional support and regional trade linkages on firm-level technological capabilities in the semiconductor industry in Malaysia. An evolutionary perspective was used to measure technological capabilities using knowledge embodied in machinery, organization, processes and products. The results show that host-site institutional support, and regional trade linkages were correlated with technological upgrading. The relationship between host-site institutional support and technological upgrading was stronger than that between regional trade linkages and technological upgrading. The results show that host site institutional support is more important than regional integration in influencing firms’ capacity to upgrade their technological capabilities.

Keywords: institutional support; Malaysia; regional trade chains; semiconductors; technological capabilities (search for similar items in EconPapers)
JEL-codes: L14 L22 L62 O31 (search for similar items in EconPapers)
Pages: 32 pages.
Date: 2015-02
New Economics Papers: this item is included in nep-int and nep-sea
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Journal Article: Institutional support, regional trade linkages and technological capabilities in the semiconductor industry in Malaysia (2016)
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