DEVELOPMENT AND R&D CAPABILITY AT MANUFACTURING SITES: ELECTRONICS MULTINATIONALS IN SINGAPORE AND TAIWAN

Abstract

In this paper we present the results of an empirical study of the manufacturing sites of foreign electronics companies in Singapore and Taiwan. The manufacturing and R&D capabilities at the sites are assessed. The way in which host government policies interact with R&D development at the sites and the speed of the R&D development are also considered. The results suggest that Singapore and Taiwan are now host to some advanced manufacturing and R&D operations. We show, however, that the product design work at the sites visited is never leading edge for the companies concerned. The speed at which product design responsibilities were designated to the sites is shown to be rapid when compared to an earlier study of foreign sites in the United Kingdom. We indicate areas in which national strategies in Singapore and Taiwan may have contributed to this faster development. In Singapore, we identify tax holidays and R&D grants as contributing to the pace of development.

A Retrospective Look at Production and Operations Management Articles on New Product Development

“…POM also published a paper that is concerned with the impact of government policy on technology strategy. In the summer of 1997, Tilley et al (1997) assessed and compared development capabilities of companies in Singapore and Taiwan, and they also studied the impact of government policy on the R&D capabilities of electronics companies in these countries. They found that national strategies in Singapore and Taiwan, especially tax holidays and R&D grants, contributed to the pace of development.…”