Competition and Collaboration in Electronics: What are the Prospects for Britain?

Abstract

The international electronics sector is undergoing a new bout of restructuring in response to a combination of changes in markets, regulation, and technology. The main restructuring pressures are identified and the effects in two of the principal electronics industries, namely, data processing and telecommunications, are examined. At this sectoral level the results of the analysis suggest that even the very largest firms are having great difficulty in coping with the uncertainties associated with changing markets and technological change. Consequently, these firms are increasingly resorting to new forms of collaboration in an attempt to compete more effectively. It is also argued that these changes (such as the trend towards more integrated supply chains) carry enormous implications for national and regional development strategies. These spatial implications are examined in the context of an analysis of Britain's withering position in the international division of labour in electronics. The paper is concluded by an examination of the theoretical and policy implications of these changes.