International competitiveness, technical change and the state: The machine tool industry in Taiwan and Japan |
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| Authors: | Martin Fransman |
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| Affiliation: | 1. Department of Medical Physiology, Faculty of Medicine, Sivas Cumhuriyet University, Sivas, Turkey;2. Department of Medical Services and Techniques, Vocational School of Health Services, Sivas Cumhuriyet University, Sivas, Turkey;1. Department of Dental Materials, Nihon University School of Dentistry, Tokyo, Japan;2. Division of Biomaterials Science, Dental Research Center, Nihon University School of Dentistry, Tokyo, Japan;1. School of Materials Science and Engineering, Shandong Jianzhu University, Jinan 250101, Shandong, China;2. Institute for Superconducting and Electronic Materials Australian Institute of Innovative Materials, The University of Wollongong, AIIM Facility (Building 231), Innovation Campus, Squires Way, North Wollongong, NSW 2500, Australia;3. Science and Technology on Power Beam Processes Laboratory, BeiJing Key Laboratory of High Power Beam Additive Manufacturing Technology and Equipment, Aeronautical Key Laboratory for Additive Manufacturing Technologies, AVIC Manufacturing Technology Institute, Beijing 100024, China |
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| Abstract: | It is widely accepted that the growth performance of Japan and the Asian newly industrialized countries (Hong Kong, Singapore, South Korea and Taiwan) is partly the result of the international competitiveness they have achieved in a number of export industries. It remains, however, to explain how this competitiveness was achieved. In the first part of the paper an attempt at such an explanation, based on the theory of comparative advantage, is critically examined. It is argued that while this explanation does have some explanatory power, it does not deal adequately with (a) the role of technical and productivity change; (b) the causal mechanisms underlying economic growth; and (c) the role of the state. The rest of the paper examines the case of machine tools in Taiwan and Japan showing the importance of these three factors as well as a number of others as determinants of international competitiveness. The paper ends with a discussion of policy dilemmas relating to international competitiveness in the Taiwanese machine toot industry. |
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