| The present dissertation investigates factors behind the expansion of R&D intensive activities in late-developing economies. Three theoretical approaches have been previously proposed to explain technological development in late-developing economies. The global-pull perspective focuses on technology transfer from global firms to firms in a late-developing economy. In contrast, the state-push perspective emphasizes the actions of developmental states. Lastly, the brain circulation perspective points to the circulation of high-skilled immigrant professionals, managers and entrepreneurs between advanced industrial and late-developing economies. Viewing technology as a set of organizational routines, the present dissertation reformulates the predictions of each of the above macro level theories into operational hypotheses about how firms in late-developing economies acquire novel organizational routines. Focusing on Shanghai's emerging cluster of IC design firms, often dubbed "China's Silicon Valley," the dissertation tests predictions using data from more than 130 interviews with IC design industry insiders and a survey of 73 IC design firms. The results suggest that though global-pull factors played a considerable role in promoting technological development, they did not fully account for its development. In fact, over-embeddedness in global production networks restricted a firm's potential for technological change. The results also suggest that although the state successfully promoted technological development in Shanghai through indirect means, including expansion of engineering education, it was less successful in promoting technological development through more direct means. The present research found that although brain circulation played an important role in fostering technological development, technological entrepreneurship was not the only mechanism through which Taiwanese and returnee Chinese contributed to industry's development. The research found that compared to Taiwanese, returnee Chinese lacked management experience and industry contacts, which restricted their contribution to technological development through entrepreneurship. Instead, returnee Chinese and to a lesser extent, Taiwanese high-skilled migrants played an important role in preparing conditions for technological development through their engagement with local universities and on-the-job transfer of skills to their domestically trained employees. |
