Production Networks and Innovation in the Semi-periphery: The Transition to Electric Vehicles in South Korea and Spain.

SOUTH Korea; SPAIN

What determines the ability of firms based in New Advanced Economies to generate innovation in the transition to electric vehicles (EVs)? Under what conditions are they more likely to break with their established pattern as fast followers to create innovation that is new to the world? To address these questions, we introduce a meso-level framework focused on the organization of global production networks. The framework examines three aspects of such networks: the position of the firm within the network, the number of lead firms, and the links between lead firms and suppliers. We illustrate the explanatory power of our framework through the cases of South Korea and Spain, the two New Advanced Economies with the largest automotive sectors. We characterize Korea’s production network as a unipolar, captive structure and Spain’s as part of an EU-wide multipolar, modular production network. We argue that contrary to common perceptions, Korea’s structure delayed the transition to EV’s and strengthened Korea’s role as a fast follower. Meanwhile, Spain’s embeddedness in the EU production network offered significant opportunities for turnkey suppliers to generate novel innovation despite the absence of a domestic lead firm. [ABSTRACT FROM AUTHOR]

Copyright of Studies in Comparative International Development is the property of Springer Nature and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)