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TECHNOLOGY POLICIES IN EAST AND SOUTHEAST ASIA: CREATING A NEW GLOBAL STRUCTURE IN THE AIRCRAFT INDUSTRY

Abstract This paper shows that a deliberate policy, in the process from labour-intensive to more knowledge-intensive sectors, among developing and newly industrializing economies in East and Southeast Asia, has created a large number of subcontracting links within in the international aircraft manufacturing industry. A main reason for this development is the tool of offset, which shows that this “benefit” technique has been formalised in aircraft procurement program as part of an acquisition process. The most successful examples are China (P.R.C) and South Korea. The study also shows that up to 1995 there have been no intra-regional subcontracting links within airframe manufacturing. The future success of these technology transfer links, at the destination level, is determined among other things, by the strategy of the sourcing company as well as the installation of technology of the receiving company.