Abstract
There has been a remarkable shift of high technology manufacturing to China and
East Asia over the last two decades. This presents a challenge to companies
competing in these industries, especially those who have a long term interest in
managing the diffusion of know-how to competitors. This talk will explore some
of the driving forces behind these developments: the enabling shift to
horizontal technologies and the ensuing value-chain migration, know-how
diffusion through embodiment in tools, know-how diffusion through personnel
mobility, the development of supplier networks and clusters, and industrial
policy that reflects a deep understanding of cluster phenomena. This talk will
present the point of view of a practitioner, one who has been doing business in
Asia, moved manufacturing into China, and has been exposed to the industrial
policy debate and its consequences at the ground level.