ABSTRACT
The contribution of high technology industries to the development of LDCs has frequently been questioned, particularly by proponents of the ‘New International Division of Labour’ (NIDL) hypothesis. Critics have focused on the role of the transnationals which have commonly served as the vehicle for technology transfer; it has been alleged that spinoffs to the local economy have been limited or non-existent, while the workforce has had to endure unhealthy and exploitative work conditions in the new industries. This paper reviews these criticisms in the particular context of the East Asian semiconductor industry. It is argued that the most recent evidence from the major locations of the industry supports the view that its contribution to local economic development has been on balance beneficial, both in countries where the industry continues to be dominated by transnationals and in others where a substantial indigenous capacity has emerged.
