LARGE AND LATECOMER FIRMS: THE TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY AND TAIWAN'S ELECTRONICS INDUSTRY

Chia‐wen Lee, Roger Hayter and David W. Edgington

Tijdschrift voor Economische en Sociale Geografie, 2010, vol. 101, issue 2, 177-198

Abstract: This paper focuses on the role of Taiwan's ‘latecomer firms’ that are also large firms in developing technological capability within the electronics industry. Taiwan illustrates a latecomer country that has industrialised in the late twentieth century through export‐based industrialisation and latecomer firms are indigenous influences shaping this process. Large firms comprise a business segment distinctive from small firms and giant MNCs, and are characterised by strong commitments to innovation. Conceptually, a framework is outlined that connects latecomer firms with the triad business segmentation model, local technology learning as summarised by reverse product cycle dynamics and clustering. Empirically, the study focuses on the evolutionary dynamics of a latecomer case study, the Taiwan Semiconductor Manufacturing Company, to reveal important insights regarding the development of Taiwan's internationally competitive technological capabilities. The case study reveals the significance of large latecomer firms to the technology learning process, and in reducing technology gaps with global leaders.

Date: 2010
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