Table of Contents
Acknowledgments xv
About the Authors xvii
Abbreviations xix
Chapter 1 Southeast Asia Faces Mounting Competition 1
Brief Development History of the Four Southeast Asian Tigers 4
The East Asian Model 5
The Malaysian Experience 7
Analyzing Industrial Change in Southeast Asia 14
Tiger in the Spotlight 15
Chapter 2 Malaysia: The Quintessential Maturing Tiger Economy 17
Sources of Growth 17
Evolution of the Manufacturing Industry in Malaysia 22
Annex 2.A: Indicators of Competitiveness 31
Chapter 3 Analyzing Comparative Advantage and Industrial Change: Reading the Export Trade Tea Leaves 37
Exports and Industrial Change 38
An Overview of Export Capabilities 86
Chapter 4 Imports and Foreign Direct Investment: Competition and Technology Transfer 93
Imports and Technology Transfer 95
Patterns of Foreign Direct Investment 98
Technology Infusion from FDI and Upgrading 102
Chapter 5 Leading and Faltering Industries: The Electronics, Auto Parts, and Agro-Processing Sectors 105
Electronics and Electrical Engineering 105
Auto Parts Industry 109
Palm Oil, Biodiesel, and Food Products 113
Chapter 6 Can Southeast Asian Tiger Economies Become Innovative? 119
Industrial Location 119
Quality of Labor 131
Access to Finance 150
Chapter 7 From Technology Development to Innovation Capability 159
R&D Spending 160
Patenting Activity 172
Licensing and Technology Transfer 178
Research Activities of Malaysian Firms 180
Innovation Comparative Advantage 183
Chapter 8 Can the Tigers Grow Fast and Furious Again? 187
Long-Run Growth 187
How Neighboring Economies Can Affect Malaysia 199
Chapter 9 What Can the Tigers Do?203
Appendix A Revealed Comparative Advantage of East Asian Economies Other than Malaysia 219
Appendix B Product Space Analysis for Southeast Asian Economies 225
Appendix C Research and Development Spending by Private Firms in Malaysia 235
Appendix D Index of Innovation Revealed Comparative Advantage 237
Appendix E Financial Incentives for Research and Development, Technology Development, and Innovation in Chinese Firms 241
Appendix F Financial Incentives for Research and Development, Technology Development, and Innovation in Thai Firms 243
References 249
Index 269
Figures
2.1 Industrial Composition by Type of Manufacture, Malaysia, 1981, 1990, and 2002 23
2.2 Value-Added Ratios in Machinery in Selected East Asian Economies 27
