Taiwan and South Korea seem best positioned to increase their competitiveness in technology-related fields and markets and move closer to Japan in terms of technological stature. Strong patent activity in electronics and telecommunications, tapping into U.S. technological know-how, and incorporating advanced technology products throughout their economies are a few of the indicators suggesting technological advancement for these economies. The set of leading indicators highlight the technological infrastructure and productive capacity in both economies that should support further growth in their high-technology industries.
Singapore and Hong Kong, while showing many signs of technological strength, seem to be operating on a somewhat narrower technology foundation than are Taiwan and South Korea. They have not shown the same level of patent activity or the same presence in global technology markets as have the other two NIEs. Hong Kong is the region's wild card, however. Integration with China is scheduled for 1997 and whether the Hong Kong industrial and technological base will continue to grow will depend upon how it is incorporated in the new China.
Malaysia is the single emerging Asian economy that, on the basis of these indicators, could likely develop into the next Asian "tiger"--that is, an NIE. Malaysia is purchasing increasing amounts of advanced technology products and has attracted large amounts of foreign investment to establish its own in-country high-tech manufacturing facilities. Even if these facilities are mostly platform (assembly) operations today, Malaysia's strong national commitment, socioeconomic structure, and productive capacity suggest that as it gains technological capabilities, more complex processing will likely follow.
India shows tremendous strengths in certain of the indicators, but also shows tremendous weakness. The country has a long tradition of educating highly qualified scientists and engineers and a well-deserved reputation for excellence in basic research, yet it harbors one of the highest illiteracy rates in the region. This anomaly produced the lowest score given among the eight economies for the socioeconomic infrastructure indicator. Uneven acceptance of foreign products and investment has inhibited internal competition that otherwise may have motivated India to better capitalize on its engineering strengths. Some of the regulations and policies related to foreign investment are slated to change in the near future, and this may improve India's position over the long run (The Economist 1991).
China and Indonesia show many mixed signs in these indicators of technology development and competitiveness. Both countries show rising purchases of U.S. advanced technology products and increased licensing of technological know-how. Yet compared with the other Asian economies, these countries do not show the same level of national commitment, technological infrastructure, and productive capacity that would project technological competitiveness in the near future.
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