Global Value Chains in the Electronics Industry : Was the Crisis a Window of Opportunity for Developing Countries?
This paper presents evidence of the importance of electronics global value chains (GVCs) in the global economy, and discusses the effects of the recent economic crisis on the industry. The analysis focuses on how information is exchanged and introd...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100913084841 http://hdl.handle.net/10986/3901 |
| Summary: | This paper presents evidence of the
importance of electronics global value chains (GVCs) in the
global economy, and discusses the effects of the recent
economic crisis on the industry. The analysis focuses on how
information is exchanged and introduces the concept of
"value chain modularity." The authors identify
three key firm level actors -- lead firms, contract
manufacturers, and platform leaders -- and discuss their
development, or "co-evolution" in the context of
global integration. Company, cluster, and country case
studies are then presented to illustrate how supplier
capabilities in various places have developed in the context
of electronics global value chains. The findings identify
some of the persistent limits to upgrading experienced by
even the most successful firms in the developing world. Four
models used by developing country firms to overcome these
limitations are presented: (1) global expansion though
acquisition of declining brands (emerging multinationals);
(2) separation of branded product divisions from contract
manufacturing (original design manufacturing (ODM)
spinoffs); (3) successful mixing of contract manufacturing
and branded products (platform brands) for contractors with
customers not in the electronic hardware business; and (4)
the founding of factory-less product firms that rely on
global value chains for a range of inputs, including
production (emerging factory-less start-ups). |
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