ABSTRACT
This chapter considers that the case of the electronics industry, focusing on the experience of two regions on opposite sides of the Pacific: Penang in Malaysia, and Guadalajara in Mexico. It examines the extent to which technology has been transferred in each setting from multinational firms to the local milieu, and the channels through which the process has taken place. Foreign direct investment (FDI) is seen as a major instrument for the corporate expansion of multinational firms. National and local governments play an important role in attracting FDI and promoting ventures in their country or region, as Rasiah Rajah and Ian Chalmers have shown for Malaysia and Singapore respectively. By transferring technology, multinational enterprises (MNEs) can enhance the technical level of host countries, thereby leading to an increase in productivity and higher rates of growth. Penang is both a typical example of an MNE enclave based on export-processing zones and a case study of high-tech regional development.
