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Abstract
This study examines the impact of systemic pillars on technological capabilities in garment manufacturing in Laos. The evidence shows that garment manufacturing employment rose strongly over the period 2000–2006 but has been confined to low value added activities because of low technological capabilities. While acknowledging the importance of employment creation, this work argues that the systemic pillars in Laos must be strengthened for firms to introduce superior technological capabilities to sustain their competitiveness.
Notes
1. Buckley (Citation2004) offers an analytical framework to explain Asian network firms.
2. Within the same country some regions have responded differently to government policies compared to other regions. Hence, electronics synergies are far more dynamic in Penang compared to Johor in Malaysia (see Rasiah Citation2002, Rasiah and Asokkumar Citation2009).
3. Interviews by Authors carried out on 18 December 2007.
4. This survey was funded by the Japan External Trade Organization (JETRO).
5. See Rasiah (2008) for a broader explication of taxonomies and trajectories involving more advanced economies.
6. Interviews by authors on 10 December 2007.