Government Support, FDI Clustering and Semiconductor Sustainability in China: Case Studies of Shanghai, Suzhou and Wuxi in the Yangtze Delta

Tsu-Lung Chou, Jung-Ying Chang and Te-Chuan Li
Additional contact information
Tsu-Lung Chou: Graduate Institute of Urban Planning, National Taipei University, 151, University Rd., San Shia District, New Taipei City 23741, Taiwan
Jung-Ying Chang: Graduate Institute of Urban Planning, National Taipei University, 151, University Rd., San Shia District, New Taipei City 23741, Taiwan
Te-Chuan Li: Graduate Institute of Urban Planning, National Taipei University, 151, University Rd., San Shia District, New Taipei City 23741, Taiwan

Sustainability, 2014, vol. 6, issue 9, 1-27

Abstract: With reference to the case studies of Shanghai, Suzhou, and Wuxi, in the Yangtze Delta, China, this paper demonstrates the local possibilities and various development paths for developing an indigenous semiconductor industry, using the government support within foreign direct investment (FDI)-dominated clusters for the New Industrializing Countries (NICs). Two important policy lessons are identified. The first is that the government may attract FDI and develop high-tech clustering by using policy support, but it does not necessarily provide conducive and positive influences on the sustainable development of domestic semiconductors. The second lesson is that the sustainability of the domestic semiconductor industry in the FDI cluster may start from three connected elements: (1) a pragmatic goal of government support; (2) complementarities of the domestic semiconductors with international leading firms in the market, technology and equipment linkages; and (3) a sustainable capacity of technical learning to drive local developments.

Keywords: semiconductor; industrial clustering and sustainability; FDI; Yangtze Delta (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://www.mdpi.com/2071-1050/6/9/5655/pdf (application/pdf)
https://www.mdpi.com/2071-1050/6/9/5655/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:6:y:2014:i:9:p:5655-5681:d:39691

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().