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Analysing the agricultural sectors of Taiwan, Malaysia and Singapore, this paper examines the capability‐building process that encourages productivity and innovation. It describes and explains the origins and subsequent evolution of three forms of agricultural production system, each generating different farming capabilities and distinct forms of competitive advantages. The paper argues that Taiwan's rice‐oriented agricultural production system stimulates both productivity and innovation, helping Taiwanese farmers raise their income level and living standards. The active deployment of state institutions and a malleable labour force, evidenced in the Malaysian palm oil industry, is effective in raising farming productivity but not the ability to innovate. Singapore's aquaculture‐oriented agricultural production system is somewhat useful in stimulating productivity and innovation. Yet the city‐state's inherent lack of space and open international trade regime have circumscribed the potential of its aquaculture industry. It now relies on the regional ethnic Chinese business networks to expand the aquaculture industry's knowledge base and its industrial commons. The principles discussed in this paper provide policy lessons, or at least some initial guidance, for other developing economies aspiring to modernise their agricultural sector. [ABSTRACT FROM AUTHOR]

This paper analyzes the effect of foreign direct investment (FDI) entry on the domestic value‐added ratio (DVAR) in exports using data on Chinese firms between 2000 and 2007. We adopt the difference‐in‐difference method to estimate instrumental variables regressions, treating the adoption of the Revisions to the Catalogue for the Guidance of Foreign Investment Industries in 2002 as a policy shock. Our analysis yields a few findings. First, FDI entry suppresses firm DVAR, a result that continues to hold after taking into consideration the randomness of the policy treatment group, other policy shocks, firm entry and exit, and the use of alternative measures. Second, FDI entry exerts a greater impact on the DVAR of foreign rather than domestic firms, non‐state‐owned enterprises (SOEs) rather than SOEs, and firms located in the eastern rather than central and western regions. Third, FDI entry negatively affects DVAR mainly through its horizontal spillovers after taking into account FDI entry in upstream and downstream industries. Fourth, compared to FDI from Hong Kong, Macao, and Taiwan (HMT), foreign investments from non‐HMT regions are less likely to inhibit firm DVAR. Lastly, we find that value capture capacity, as measured by firm innovation, plays an important role in mediating the impact of FDI entry on DVAR. Taken together, these findings suggest that sustainable domestic economic development cannot rely solely on the introduction of foreign investment and should instead emphasize the importance for firms to improve value capture capacity so as to better capitalize on the positive spillovers generated by foreign investment. [ABSTRACT FROM AUTHOR]

This study challenges existing literature which maintains that technology latecomers usually depend on imported technologies to develop emerging high-tech sectors. This paper argues that the domestic institutional environment in facilitating networking might be more important for developing academia-industry ( A- I) networks. The co-evolution of institutions and the knowledge transfer process in the Taiwanese Biopharmaceutical Innovation System ( TBPIS) is a case in point. Far from relying purely on foreign technologies, several important institutional and policy changes, which transform the institutional environment from prohibiting A- I intertwining into encouraging A- I collaborations, have enabled domestic research institutes to influence the acquisition, creation, and diffusion of knowledge in the innovation network. Nonetheless, the country continues to struggle in commercializing domestic scientific research to step into a knowledge-based economy. Therefore, this paper suggests that more productive strategies would be helpful to advance domestic academic research, sustain A- I networks, and strengthen the innovation system. [ABSTRACT FROM AUTHOR]

The paper reports the results of analyzing the effects of technological change and job risk on wage premiums in Taiwan. Using unique individual data combined with industry-level indices of technological change and fatality rates across industries, the empirical results show that, overall, industries characterized by a higher rate of technological change or fatality pay a higher wage. However, these positive correlations are attributed to the sorting effect in which workers with some specific features choose to find jobs in industries with rapid technological change and higher job risk. Furthermore, this paper reports a positive relationship between education and wages after controlling for individual heterogeneity, showing the existence of education premium in Taiwan. [ABSTRACT FROM AUTHOR]

This paper aims to identify the effects of innovation on employment and labor composition in Taiwan. Using a new and detailed firm-level data set, the empirical results determine that innovations, measured by R&D investments or patent counts, have a positive impact on employment. Both of the estimated employment effects of product and process innovations are overall significantly positive. Although the effects of process innovations differ between high and low R&D-intensive industries, the process innovation tends to expand the firms’ output and then increase employment for high R&D-intensive industries. However, it frequently results in laborsavings in terms of production work and reduces jobs in low R&D-intensive industries. Moreover, technological innovations are found to be non-neutral, leading to a shift in labor composition in favor of skilled and more educated workers. [ABSTRACT FROM AUTHOR]

We construct an endogenous growth model with random interactions where firms are subject to distortions. The TFP distribution evolves endogenously as firms seek to upgrade their technology over time either by innovating or by imitating other firms. We use the model to quantify the effects of misallocation on TFP growth in emerging economies. We structurally estimate the stationary state of the dynamic model targeting moments of the empirical distribution of R&D and TFP growth in China during the period 2007–2012. The estimated model fits the Chinese data well. We compare the estimates with those obtained using data for Taiwan and perform counterfactuals to study the effect of alternative policies. R&D misallocation has a large effect on TFP growth. [ABSTRACT FROM AUTHOR]

This study explores the transitional processes of Taiwan's innovation system over the past half century, evolving from being rooted in traditional industries to attaining development in a virtuous cycle of development. Our approach is inspired by the Arena of Development theory and acknowledges the system of transformation failures, in which we highlighted the types of failures that might impede economic progress and how they were overcome in the evolutionary targeting of Taiwan's industrial development. Our findings demonstrate that the success of Taiwan's economic transition is targeted on, and evolves with, a series of macrolevel policies in the early phase of development; mesolevel institutional mechanisms to attain the industrial emergence settings; and, in pursuit of the virtuous cycle of development, the microlevel collaboration platform. We attribute the success of Taiwan's industrial system to this series of systematic government interventions. This study provides novel and salient normative principles that guide transformational policymakers in governing transitional processes of innovation system. [ABSTRACT FROM AUTHOR]

ABSTRACT While innovations generated by supply channel relationships, as opposed to individual partners, play an increasingly important role in the success of all supply chain partners, there has been a dearth of research in the literature on how supply chain relationships cultivate the process of such innovation generation. We explore supplier market knowledge acquisition, relationship learning, systems collaboration, and technological uncertainty as antecedents of supplier innovation generation, which is in turn hypothesized to positively affect the relationship performance of the supplier. Furthermore, supplier dependence on the buyer is investigated as a moderator of the effects of such antecedents on supplier innovation generation. Empirical tests, which used a sample of 236 Taiwanese executives, supported most of the hypotheses, and some implications of the results are discussed. [ABSTRACT FROM AUTHOR]