Discussion Papers

Institutional Support, Technological Capabilities and Domestic Linkages in the Semiconductor Industry in Singapore

By Rajah Rasiah and Yap Xiao Shan

ERIA Discussion Paper 2015-17

Posted: February 2015

Abstract


This article examines the relationships between host-site institutional support and firm-level technological upgrading, and between technological upgrading and domestic production linkages in the semiconductor industry in Singapore. An evolutionary perspective was used to measure technological capabilities using knowledge embodied in machinery, organization, processes and products. The results show that host-site institutional support is important for technological upgrading and technological capabilities are positively correlated with domestic linkages. Also, domestic linkages rather than regional linkages were correlated with technological upgrading, which is a consequence of Singapore's sophisticated infrastructure compared to its neighbours in Southeast Asia.

ERIA-DP-2015-17

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