Spatiotemporal Evolution of the Taiwanese-Funded Information Technology and Electronics Industry Value Chain in Mainland China

Yanhua Chen, Suqiong Wei, Hongou Zhang and Yuehua Gao
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Yanhua Chen: Guangzhou Institute of Geography, Guangzhou 510070, China
Suqiong Wei: College of Geographical Sciences, Fujian Normal University, Fuzhou 350007, China
Hongou Zhang: Guangzhou Institute of Geography, Guangzhou 510070, China
Yuehua Gao: College of Geographical Sciences, Fujian Normal University, Fuzhou 350007, China

Sustainability, 2019, vol. 11, issue 11, 1-18

Abstract: The Chinese Mainland has become the largest production base and a major potential market for Taiwan’s information and electronics industry. Thus, studying the spatiotemporal evolution of the Taiwanese-funded information technology and electronics industry in the Mainland from the value chain perspective is necessary. This will help deepen the labor division and collaboration between the cross-strait information technology (IT) and electronics industry for sustainable development. Using Taiwanese investments during 1991–2012 and detailed firm-level data for 1976–2012, this study examines the spatiotemporal trajectory and geographical patterns of the labor division of Mainland China’s Taiwanese-funded IT and electronics industrial value chain from a modular perspective. Based on the characteristics of the modular production process, the Taiwanese-funded IT and electronics firms in Mainland China are divided into four modules—parts manufacturing (PM), key parts manufacturing (KPM), complete machine manufacturing (CMM), and design and marketing (DM). We found that: (1) technology and value witnessed clear stage changes; (2) the PM and CMM modules were more decentralized, and the four modules formed five clusters; and (3) despite an increase, the degree of the four geographical divisions of labor was relatively low. This study offers implications for research and IT policy and electronics enterprises’ production practices.

Keywords: industry sustainability; value chain; modularity; spatiotemporal evolution; labor division; Taiwanese-funded information technology and electronics industry in Mainland China (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:11:y:2019:i:11:p:3214-:d:238541

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