Introduction

Over the last decades, an intensive process of redistribution of production across the world has been observed (Bruche, 2012; Dachs and Pyka, 2010; Meyers et al., 2008; UNESCO, 2010; Van der Zee, 2006). As part of the process, large corporations have begun to seek new knowledge opportunities worldwide (Bartlett and Ghoshal, 1990; Dunning, 1994). This is motivated by rapid innovation and strong market adaptation needs, of which knowledge-intensive sectors, such as the information and communication technologies (ICT) industry, are the most prominent examples. An intensive process of redistribution of production across the world is taking place with shifting roles between developed and developing countries.

For instance, the BRIC (Brazil, Russia, India, and China) countries are proving to be the major engine of global growth. They were far less impacted by the financial and economic crisis than developed economies or recovered more quickly. It is widely acknowledged that the growth rates for these emerging economies have been far above average during the last decade, and have exceeded those of the more advanced countries (EITO, 2011). Consequently, these four countries are driving most of the world’s GDP growth.

In 2010, the BRIC countries accounted for 13% of the global ICT market (U.S., 28.7%; EU51, 18.5%; rest of EU, 7.6%2), with spending of about EUR328 billion on ICT (EITO, 2011). Therefore, they are becoming major players, not just as plain ICT users/importers but also as producers of ICT goods and services. China has become the world’s largest producer of ICT products (exports of ICT increased fourfold between 2004 and 2008, though many of these are re-exports from other Asian countries).

These countries are also becoming major players in the entertainment and media markets. According to PricewaterhouseCoopers (2011), Brazil, India, and China will be the fastest growing leaders with a projected compound annual increase of 11.4, 13, and 11.6%, respectively between 2011 and 2015 (versus U.S., 4.7%; EMEA, 5.2%). Of the four first global video games markets, three are located in Asia, ranking respectively after the U.S. market, 2 (Japan), 3 (China), and 4 (South Korea) with China expected to overtake Japan. Asia is leading for online and mobile games. The Chinese IT company, Tencent, blends in a unique fashion revenues from social networking, virtual goods (it accounts for 29% of the market shares of the top 10 companies by virtual goods revenues), and 2-D and 3-D worlds/gaming venues. Korean online games achieved roughly 50% of market share in China, Japan, and Southeast Asia and a total market share of 36.5% in 2007 (Wi, 2009).

ICT spending for the period 2000–7 (OECD, 2010) showed remarkable growth: China from USD44.359 billion in 2000 to USD172.330 billion in 2007, India from USD16.575 billion to USD65.580 billion, Chinese Taipei from USD18.274 billion to USD25.223 billion. This is likely to continue. In 2009, 46% of Internet users (1.8 billion global Internet users) were concentrated in five countries (the top Internet markets): China, U.S.A., Brazil, India, Russia, four of which are BRIC countries. South Korea has been a leader for broadband deployment for quite some time and was ranking 4 in 2010.

As stated by the OECD, “in 2009 OECD countries’ share of the ICT world market declined to 76% (from 84% in 2003), as growth in non-OECD economies decoupled from growth in OECD countries. As part of this shift the top 250 ICT firms include more non-OECD firms, among them manufacturing firms in Chinese Taipei, which have partly driven the rise of China as the major exporter of ICT goods, IT services firms from India, and telecommunication services providers from a range of non-OECD economies.”

This book focuses both on four Asian countries and on the size of the IT sector and the role of IT within the countries, focusing on the supply side so as to provide an understanding of the industry. It acknowledges these global changes while exploring the specificities. Japan as a developed economy is not covered as the case has been more widely dealt with. The first two parts offer four case studies: China, India, South Korea, and Taiwan. It allows contrasting the more recent growth model from “Chindia” with the global growth model of the “dragons”, South Korea and Taiwan. These two blocks of countries offer a different historical profile with reforms dating back from the 1990s for “Chindia” and earlier policies for the “dragons”, but a different kind of later reforms focusing on IT (e.g., establishment of the ICT ministry in 1994 in South Korea which resulted in updated policies: 1995 Korea Information Infrastructure, 1999 Cyber Korea, 2003 Broadband IT Korea, 2004 IT 839, 2008 new IT strategy).

Part 1 concentrates on “Chindia”. Part 2 deals with South Korea and Taiwan. These parts review first the structure of the IT industry, assessing its size and economic dimension. Then, so as to disentangle the process of innovation, each chapter looks into the input (R&D expenditures) and output side (patents) and also assesses the role of foreign direct investment (FDI) in ICR R&D as well as offshoring. Part 3 complements the case studies through a more horizontal approach of internationalization based on patent analysis and global networks (trade, location of R&D centers). It studies the internationalization of R&D, the modes of collaboration for inventive activities and global trade networks.