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Globalization has greatly influenced East Asia's industrial structure. It provides large firms with the opportunity to seek out lower-price suppliers abroad. As a result, imports of Chinese products have greatly increased in many countries. Small and medium-size enterprises (SMEs) have thus been confronted with the prospect of severe deterioration in profitability and wages, to the point where they have to compete against Chinese firms, or of exiting altogether.
A solution would be to restructure SMEs and upgrade technological capabilities, so that they can avoid cost competition. Restructuring, however, poses many challenges for SMEs. This book examines a path that would offer several solutions, and policies that include regional clusters, the provision of knowledge-based resources, and strengthening of competition policies. A carefully coordinated restructuring process is also needed, so that marginal SMEs are able to exit smoothly.
The book is arranged in three parts, which examine the restructuring of SMEs in the age of globalization, policy schemes to promote innovations, and the role of SME credit guarantee schemes. To encompass a wide range of views about SMEs and policy schemes for them, the chapters are authored by experts on Japan, Korea, Taiwan, the United States, and the OECD countries.
© Korea Development Institute
Globalization has greatly influenced East Asia's industrial structure. It provides large firms with the opportunity to seek out lower-price suppliers abroad. As a result, imports of Chinese products have greatly increased in many countries. Small and medium-size enterprises (SMEs) have thus been confronted with the prospect of severe deterioration in profitability and wages, to the point where they have to compete against Chinese firms, or of exiting altogether.
A solution would be to restructure SMEs and upgrade technological capabilities, so that they can avoid cost competition. Restructuring, however, poses many challenges for SMEs. This book examines a path that would offer several solutions, and policies that include regional clusters, the provision of knowledge-based resources, and strengthening of competition policies. A carefully coordinated restructuring process is also needed, so that marginal SMEs are able to exit smoothly.
The book is arranged in three parts, which examine the restructuring of SMEs in the age of globalization, policy schemes to promote innovations, and the role of SME credit guarantee schemes. To encompass a wide range of views about SMEs and policy schemes for them, the chapters are authored by experts on Japan, Korea, Taiwan, the United States, and the OECD countries.
© Korea Development Institute
