Asia in the Global ICT Innovation Network (eBook)

Dancing with the Tigers

Daniel Nepelski, Giuditta De Prato, Jean Simon (Herausgeber)

eBook Download: PDF | EPUB

2013 | 1. Auflage
296 Seiten
Elsevier Science (Verlag)
978-0-85709-471-1 (ISBN)

Infos

Production and innovation activities are being re-distributed across the world. The BRICS countries (Brazil, Russia, India and China) are proving the major engine of global growth, being less impacted by the financial crisis than developed economies or able to recover more quickly. Asia in the Global ICT Innovation Network takes a close look at the information and communication technologies (ICTs) landscape, not only in two BRICS countries, India and China, but also in South Korea and Taiwan. The book documents the size of the ICT sector for each of the selected countries, and assesses their R&D expenditure and its place in the international innovation network. The selected countries play a major role in shifting patterns of international trade and global value chains. The countries offer different historical profiles, with reforms dating back from the nineties for 'Chindia and earlier policies for the 'dragons, with later reforms focusing on IT. The book accounts for their specificity, and emphasises the fact that the four countries have achieved impressive results in terms of economic growth. The ICT sector was a major contributor to this growth and led a pioneering role for other sectors.This title consists of three parts: ICT in emerging economies, covering China and India; the return of the dragons, covering South Korea and Taiwan; and Network knowledge and trade, covering regional networks of R&D centres, India as an S&T cooperation partner, Asian countries in the global production network, and Asia in the process of internationalisation of ICT and R&D. - Provides a well-supported look at the ICT sector in Asia, an area where extant literature consists mostly in a scattering of articles in various and heterogeneous journals - Focuses on innovation - Speaks to a growing interest in the role of emerging countries in ICT innovation

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Production and innovation activities are being re-distributed across the world. The BRICS countries (Brazil, Russia, India and China) are proving the major engine of global growth, being less impacted by the financial crisis than developed economies or able to recover more quickly. Asia in the Global ICT Innovation Network takes a close look at the information and communication technologies (ICTs) landscape, not only in two BRICS countries, India and China, but also in South Korea and Taiwan. The book documents the size of the ICT sector for each of the selected countries, and assesses their R&D expenditure and its place in the international innovation network. The selected countries play a major role in shifting patterns of international trade and global value chains. The countries offer different historical profiles, with reforms dating back from the nineties for "e;Chindia and earlier policies for the "e;dragons, with later reforms focusing on IT. The book accounts for their specificity, and emphasises the fact that the four countries have achieved impressive results in terms of economic growth. The ICT sector was a major contributor to this growth and led a pioneering role for other sectors.This title consists of three parts: ICT in emerging economies, covering China and India; the return of the dragons, covering South Korea and Taiwan; and Network knowledge and trade, covering regional networks of R&D centres, India as an S&T cooperation partner, Asian countries in the global production network, and Asia in the process of internationalisation of ICT and R&D. - Provides a well-supported look at the ICT sector in Asia, an area where extant literature consists mostly in a scattering of articles in various and heterogeneous journals- Focuses on innovation- Speaks to a growing interest in the role of emerging countries in ICT innovation

Textauszug

Introduction

Giuditta De Prato, Daniel Nepelski and Jean Paul Simon

Over the last decades, an intensive process of redistribution of production across the world has been observed (Bruche, 2012; Dachs and Pyka, 2010; Meyers et al., 2008; UNESCO, 2010; Van der Zee, 2006). As part of the process, large corporations have begun to seek new knowledge opportunities worldwide (Bartlett and Ghoshal, 1990; Dunning, 1994). This is motivated by rapid innovation and strong market adaptation needs, of which knowledge-intensive sectors, such as the information and communication technologies (ICT) industry, are the most prominent examples. An intensive process of redistribution of production across the world is taking place with shifting roles between developed and developing countries.

For instance, the BRIC (Brazil, Russia, India, and China) countries are proving to be the major engine of global growth. They were far less impacted by the financial and economic crisis than developed economies or recovered more quickly. It is widely acknowledged that the growth rates for these emerging economies have been far above average during the last decade, and have exceeded those of the more advanced countries (EITO, 2011). Consequently, these four countries are driving most of the world’s GDP growth.

In 2010, the BRIC countries accounted for 13% of the global ICT market (U.S., 28.7%; EU51, 18.5%; rest of EU, 7.6%2), with spending of about EUR328 billion on ICT (EITO, 2011). Therefore, they are becoming major players, not just as plain ICT users/importers but also as producers of ICT goods and services. China has become the world’s largest producer of ICT products (exports of ICT increased fourfold between 2004 and 2008, though many of these are re-exports from other Asian countries).

These countries are also becoming major players in the entertainment and media markets. According to PricewaterhouseCoopers (2011), Brazil, India, and China will be the fastest growing leaders with a projected compound annual increase of 11.4, 13, and 11.6%, respectively between 2011 and 2015 (versus U.S., 4.7%; EMEA, 5.2%). Of the four first global video games markets, three are located in Asia, ranking respectively after the U.S. market, 2 (Japan), 3 (China), and 4 (South Korea) with China expected to overtake Japan. Asia is leading for online and mobile games. The Chinese IT company, Tencent, blends in a unique fashion revenues from social networking, virtual goods (it accounts for 29% of the market shares of the top 10 companies by virtual goods revenues), and 2-D and 3-D worlds/gaming venues. Korean online games achieved roughly 50% of market share in China, Japan, and Southeast Asia and a total market share of 36.5% in 2007 (Wi, 2009).

ICT spending for the period 2000–7 (OECD, 2010) showed remarkable growth: China from USD44.359 billion in 2000 to USD172.330 billion in 2007, India from USD16.575 billion to USD65.580 billion, Chinese Taipei from USD18.274 billion to USD25.223 billion. This is likely to continue. In 2009, 46% of Internet users (1.8 billion global Internet users) were concentrated in five countries (the top Internet markets): China, U.S.A., Brazil, India, Russia, four of which are BRIC countries. South Korea has been a leader for broadband deployment for quite some time and was ranking 4 in 2010.

As stated by the OECD, “in 2009 OECD countries’ share of the ICT world market declined to 76% (from 84% in 2003), as growth in non-OECD economies decoupled from growth in OECD countries. As part of this shift the top 250 ICT firms include more non-OECD firms, among them manufacturing firms in Chinese Taipei, which have partly driven the rise of China as the major exporter of ICT goods, IT services firms from India, and telecommunication services providers from a range of non-OECD economies.”

This book focuses both on four Asian countries and on the size of the IT sector and the role of IT within the countries, focusing on the supply side so as to provide an understanding of the industry. It acknowledges these global changes while exploring the specificities. Japan as a developed economy is not covered as the case has been more widely dealt with. The first two parts offer four case studies: China, India, South Korea, and Taiwan. It allows contrasting the more recent growth model from “Chindia” with the global growth model of the “dragons”, South Korea and Taiwan. These two blocks of countries offer a different historical profile with reforms dating back from the 1990s for “Chindia” and earlier policies for the “dragons”, but a different kind of later reforms focusing on IT (e.g., establishment of the ICT ministry in 1994 in South Korea which resulted in updated policies: 1995 Korea Information Infrastructure, 1999 Cyber Korea, 2003 Broadband IT Korea, 2004 IT 839, 2008 new IT strategy).

Part 1 concentrates on “Chindia”. Part 2 deals with South Korea and Taiwan. These parts review first the structure of the IT industry, assessing its size and economic dimension. Then, so as to disentangle the process of innovation, each chapter looks into the input (R&D expenditures) and output side (patents) and also assesses the role of foreign direct investment (FDI) in ICR R&D as well as offshoring. Part 3 complements the case studies through a more horizontal approach of internationalization based on patent analysis and global networks (trade, location of R&D centers). It studies the internationalization of R&D, the modes of collaboration for inventive activities and global trade networks.

Chindia

China and India are among the fastest growing economies in the world. China’s GDP has achieved more rapid growth than most other countries. India is the eleventh largest economy by nominal GDP and the fourth largest by purchasing power parity, having achieved an impressive growth rate over the last two decades. On a purchasing power parity (PPP) basis, China is the second largest economy in the world after the U.S., representing about 41.56% of total EU27 (World Bank, 2009). The two economies were resilient during the recent recession (UNCTAD, 2011b).

The Chinese and Indian ICT sectors are certainly representative of the massive changes in their industries and economies. As of 2011, ICT manufacturing represented 5.73% of the Chinese GDP. China is the world’s largest mobile market. As of January 2011, the number of subscribers reached 853 million. The 3G market started growing with China and India (Sultana, 2011). The Chinese ICT market reached a value of EUR204.1 billion in 2010 (EITO, 2011: 25). China has become the world’s largest producer of ICT products (exports of ICT increased fourfold between 2004 and 2008 though many of the exports are re-exports from other Asian countries). In 2011, China produced 60% of phone handsets, 90.6% of PCs, 48.8% of color TVs, 60% of LED monitors, and 56% of digital cameras for the world. China’s ICT sectorhas played an increasingly important role in China’s industry, total economy, and international trade. Manufacturing dominates China’s ICT industry. China is among the four leading countries for high-performance computing (HPC)4 alongside the U.S., France, and Japan (Chaudhuri, 2011).

India’s sectoral GDP composition reveals the importance of the service sector to the economy. The service sector has been the main driving factor in the growth of the Indian economy, contributing 57.3% to total GDP in 2009–10.5 It is expected that services will play a major role in India’s growth in the future as well. Indian telecom operators introduced a major business innovation: the budget or “bottom of the pyramid” (BOP) telecom model. Mobile charges are the lowest in the world. Big numbers require big solutions that are hi tech/low cost. India is the second-largest market worldwide population-wise. China and India are the fastest growing mobile markets in the world.

The Indian ICT sector is growing in all domains, but is predominantly driven by software services. India’s ICT sector is dominated by services whose share has been steadily growing from 2000–1 to reach 94.2% of the total by 2007–8. On the contrary, ICT manufacturing has been going through opposite trends with its share in the total ICT sector falling from 10.5 to 5.8% during the same period; though, the scenario is rapidly changing from providing low-end onsite services to high-end offshore services fueled by the reverse migration of Indians and by a greater realization that intellectual property creation is important, the Indian ICT sector is predominantly seen as a software services exporter. Here growth is driven by services – a real “service revolution” with unusual innovations.

In both countries, several electronics firms have become global players: Huawei Technologies, Lenovo, and ZTE in China and Tata, Wipro, and Infosys in India. Tencent, Aidu, and Alibaba.com (all Chinese companies) now rank 4, 6, and 12 among the global top 15 publicly trading Internet companies (by market value as of 2010).

The dragons

Starting in the 1970s, the Korean government established GRIs (government research institutions) to meet the technology needs of the industry. ICT being an...

Produkt-Details

• Erscheint lt. Verlag: 31.7.2013
• Sprache: englisch
• Themenwelt: Mathematik / Informatik ► Informatik ► Netzwerke
• Themenwelt: Technik ► Nachrichtentechnik
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Wirtschaftsinformatik
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre ► Makroökonomie
• ISBN-10: 0-85709-471-8 / 0857094718
• ISBN-13: 978-0-85709-471-1 / 9780857094711