Spatial Integration of Corporate R&D and Mass Production Activities in High-tech Manufacturing: A Case Study of Samsung Electronics
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Nam_2009_SEC_researchGate.pdf
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680.96 KB
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cff44f70a6aacd5648d3720c54474e10
Author(s)
Nam, Kyung-min
Date Issued
2009
Journal
Korea Spatial Planning Review
Citation
Nam, K.-M. 2009. Spatial Integration of Corporate R&D and Mass Production Activities: A Case Study of Samsung Electronics. Korea Spatial Planning Review 62: 125-145.
Version
Author's final manuscript
Abstract
This paper argues that the high-tech manufacturing sector’s location pattern in favor of the Capital Region is a key variable that can explain both divergent local manufacturing performance and Korea’s monocentric economic geography. My major findings from the case study of Samsung Electronics (SEC) can be summarized as follows. First, high-tech firms have strong incentives to integrate their R&D and manufacturing divisions spatially, because this can encourage process innovation and save substantial time for problem solving in existing production lines. Second, high-quality human resources, essential for corporate management and R&D activities, are difficult to access outside the Capital Region. Thus, uneven geographical distribution of high-quality human resources, combined with the strong need for spatial integration between R&D and mass production divisions, caused the uneven distribution of the high-tech manufacturing sector. My findings in this paper suggest that (i) non-Capital-Region economies will be able to attract high-tech manufacturing jobs only after creating a sizable local pool of national talent, and (ii) people-targeting regional policies can be more effective than firm-targeting policies in creating the dynamics for interregional convergence.
MIT Department
MIT Energy Initiative
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DOI of Published Version
http://library.krihs.re.kr/upload/publication/publication2/PR62_125.pdf
